Nationwide......

Jedlova

Has anyone heard of this????????
We are buying a new house and so it has to be surveyed from plan.
We have arranged our mortgage with the Nationwide.
The surveyor called us yesterday to say that he agrees the house is valued at the price the builders have asked for, but he has been told by Nationwide, to treat it as if we are selling the house and value it at a whopping 10% under the price.
We are putting down a hefty deposit.
Is it legal, what the Nationwide are doing??????? (you can't be too careful with banks etc. these days!!!!!!!)
Feels as if we are in negative equity before we start.
Instead of a brand new house, it feels as if we're buying second hand!
HELP

sarkin

Its Nationwides money they can do what they like.

As for buying a new build, well you must be bonkers

Jedlova

sarkin wrote: »

Its Nationwides money they can do what they like.

As for buying a new build, well you must be bonkers

Do you just sit around all day, wondering what non-constructive replies you can type?
Jealousy is a terrible thing!

hethmar

Nationwide are protecting themselves should the price fall before its even built. Do read some of the other threads on here about the contracts with new builds, some poor devils waiting over a year to get in their new homes. Make sure you have a solicitor who is on the ball re new builds and dont part with the money until you have a set in stone completion date. Take it you have got a good discount on it?

I think NW are cutting down mortgage offers on newbuilds to 80% anyway?

sarkin

Please except my apology

But asking if it is legal how Nationwide sell thier money to you was a strange question.

Ok newbuilds that was a bit unfair of me, I am sure you will enjoy living in your new dream home.

Running_Horse

I am glad to have my mortgage and savings with Nationwide. It is precisely such a cautious attitude that will mean my investments never go the same way as Northern Rock. You can always take your money elsewhere.

rjm2k1

Has the builder given any incentives like paying fees, putting down some of the deposit etc? If so it could be that the lender is viewing these as merely gimmicks and removing them from the value.

GDB2222

Jedlova wrote: »

Do you just sit around all day, wondering what non-constructive replies you can type?
Jealousy is a terrible thing!

It wasn't non-constructive. What he is saying is that a new-build house loses a lot of money the moment you set foot in the place. Your surveyor is putting a figure of 10% (plus expenses) on that loss if you sell it the day after buying it. That's a point worth thinking about, as you don't have that problem with secondhand houses.

Annpan

My son has just remortgaged with Nationwide and they've valued his place down as well. They seem to be factoring in for drops which is fair enough and makes it a safer place to put your money. Better than factoring in for raises in value and offering you a 110% mortgage - we all know where that can lead.

Cazza

Nationwide have a policy (as do some other lenders) of valuing all brand new properties on a second hand resale basis. This is to protect their lending, if they were to repossess your property soon after you had bought it; as you often pay a premium for new build properties, this type of property is particularly at risk of not making it's resale value back quickly. This is the case at any time, let alone in the current market conditions.

Whether it's right or wrong is beside the point, they can instruct the surveyors to do whatever they want. It does sound harsh on paper, but they are covering their backs and are within their rights to do so.

GracieP

GDB2222 wrote: »

What he is saying is that a new-build house loses a lot of money the moment you set foot in the place.

Why would anyone consider a new house to be worth more than an older one? It's not like a 2nd hand dress or car. I also get the impression that for the most part houses were built to a much better standard in the past. Even a lot of post-war builds, while not very attractive are sturdy and well-sized. And houses built in the 1920s and before are generally very handsome. Unless the new-build house is built to well above average architectural standards I can't imagine why anyone value* it above an older house.


*From a monetary point of view, obviously people can value it higher in terms of taste if they prefer modern builds.