Buying new house - valuation from mortgage company £30,000 less that asking price

ginvzt

Why would not they offer 25% loan? You sell the house for £100k, that is worth, lets say £80k (if that, they probably could sell it for £60k and make no loss in that). You get 75% - £75k straight away as the buyer thinks this is a bargain and then 10 years later you come and collect another 25% - £25k. You get out full £100k for a house that is worth £85k. Even if the house is worth just £60k in 10 years time, they still get £15k, which makes the total of £90k - again, more than the house is probably worth now!

stimpssl

Really angry with Wimpey they have now come back and said that they are having urgent meeting with the Valuators and that they can't let us have the house for £160,000 on the 75% shared scheme, they said it would be different if we were buying 100%. They are penalising us for wanting to use this scheme. To me thats false advertising. We are now taking legal advise on what to do. I don't see why we should lose a £500 valuation fee when its not our fault. Arghhhh!!!

poppysarah

You could try trading standards - they can't offer 75% of an inflated valuation - surely!

ginvzt

Oh, good luck!!!! They obviously shouldn't be allowed to get you 75% of inflated price!!! I would suggest to call trading standards to 'clarify the issue'.

stimpssl

thanks Poppysarah. I was going to ask does anyone know who we would complain to.

ginvzt

Wouldn't it be a false advertising if they only give you this offer if you pay unrealistic price?

poppysarah

I would say though even if you never get your £500 back you've probably had a very lucky escape!

stimpssl

Ginvzt, To me it is false advertising. They are advertising a scheme to help people get on the property ladder in this rubbish climate and yet they are now penalising us for using a scheme that they promote massively. They should have a clause to say that you can apply for the scheme but you have to pay £30,000 over the top for the house but you won't get the house because you wont get a mortgage on the house. If we had a deposit we would tell them to stick it. We have even said okay we will purchase 100% of the house at the £160,000 with Wimpey paying our 5% (which they advertise also) and they have said they will only sell the house for £160,000 to someone who has a deposit. They are living in cuckoo land in the current climate.

poppysarah

Do you not have a deposit?

stimpssl

No we don't. We rent at the moment and need to move nearer my sons school. We weren't planning to buy yet as we are saving for a deposit but because we really need to move and there is nowhere to rent at the moment we looked at these houses and Wimpey more or less convinced us it was a good way of getting on the property ladder.