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Nationwide valuation error (alledgedly!!) can I take action?

benthebookie
Posts: 7 Forumite
Hi,
First time post, but I really need some advice to help me calm down!!!
Had a valuation done on a new build that me and the other half love by Nationwide, about 6 weeks ago after getting in 2 hours before they pulled all of their good tracker mortgages. Valuation came back fine, so proceeded with the purchase and p/x of our current house.
Yesterday, 5 days before completion, Nationwide announce that due to a 'problem' with the valuation system, they have just dropped it 30K.
Because they originally said it was fine, I have now incurred legal costs, booked 5K of carpets for the new house which I can't refund, let 2 other properties we were interested go, and also missed out on a good remortgage deal on our current property 'cos there is nothing on the market anymore!
So my question is this -- can I sue Nationwide??
HELP!!!
First time post, but I really need some advice to help me calm down!!!
Had a valuation done on a new build that me and the other half love by Nationwide, about 6 weeks ago after getting in 2 hours before they pulled all of their good tracker mortgages. Valuation came back fine, so proceeded with the purchase and p/x of our current house.
Yesterday, 5 days before completion, Nationwide announce that due to a 'problem' with the valuation system, they have just dropped it 30K.
Because they originally said it was fine, I have now incurred legal costs, booked 5K of carpets for the new house which I can't refund, let 2 other properties we were interested go, and also missed out on a good remortgage deal on our current property 'cos there is nothing on the market anymore!
So my question is this -- can I sue Nationwide??
HELP!!!
0
Comments
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Probably not. Tell the seller they'll have to drop 30k.0
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Which they have already stated they will not do.
Surely Nationwide can't just 'change their minds'??
I know house prices are dropping, but 30K in a few weeks?
It's really screwed me over, and its totally and 100% their fault!!0 -
You could ask Nationwide if they would accept a second revaluation. Looks like they have taken the original valuation and downgraded by the (national?) fall in house prices since then. If you feel a valuation of your particular property would value it higher, you could ask them to revalue.
Bottom line is whether you want to pay 30k over value. Your legal and sundry costs could seem cheap compared to paying over the odds.
Just read your post again, if you have exchanged already, you risk losing your deposit and/or being served notice to complete.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Yeah why not 30k in a few weeks? That's easily some of the insane price hikes that happened when prices were going up.
We couldn't get viewings on one property as they were upping the price 20k - and I'm only talking 110k property originally - they finally upped it to 150k - we never got a to view it and they never sold it.
If you've not got 30k spare then you're almost certainly stuck.
You'll have to tell the sellers if they don't lower the price to match the valuation then you can't buy it. Pull out.
If it's dropping in price that fast they'll have to reduce the price else it won't sell.
Don't borrow the money from anyone else either. That'd be insane and instantly give you 30k negative equity.0 -
Seems that Nationwide have just saved you £60k (£30k on mortgage and £30k interest on mortgage over 25 years). Send them a "Thank You" card.0
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benthebookie wrote: »...So my question is this -- can I sue Nationwide??...
Now whether you'll win, that's another question. The Nationwide have a huge legal team behind them and having made £374 million profit in just the 6 months ending September 2008 alone (11% up on 2007), won't be too bothered spending the odd bob or two defending any action. If/when you lose, they'll want their legal expenses paid too.
Good luck!"Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
It's really screwed me over, and its totally and 100% their fault!!
If it's 5 days before completion, I assume you've already exchanged. Does their lower valuation mean a lower mortgage offer or just a lower value on the place?
I'm afraid it's not 100% their fault, in almost everything in life, it's always a case of Caveat Emptor. As all this has been happening in the last 6 weeks, were you not aware of the issues of falling property prices and the scandal of overvaluations on new builds by the inclusion of F&F in sale prices? There are dozens, if not hundreds, of posts here about the inflated valuations on new builds and why they should be avoided. It sounds like Nationwide just woke up to the fact.
Anyhow, I'm sure it's a situation that can be worked in your favour. They may have just saved you £30k. How did you end up with a contract to buy carpets for a place you didn't yet own? That can surely be renegotiated? Presumably it's still sitting on a roll somewhere and can be used for the next place you buy if this deal falls apart?
To sue, you need to prove loss. A revised valuation in changing market conditions is not a loss.Signature on holiday for two weeks0 -
Morning bookie, as a matter of interest (no pun intended) what was the percentage drop in these weeks and what type of property was it, and what location.
For example a new build city centre apartment valued at (note not using 'worth' ) £400k 6 months would now in all probability valued at £360k."An arrogant and self-righteous Guardian reading tvv@t".
!!!!!! is all that about?0 -
Sorry to disagree, I think the Nationwide have acted incorrectly, reading the post I understand that a valuation was done agreeing the Price, assume this was sent out to OP, who then based upon this made further plans, and incured cost's. Nationwdie then 5 weeks later admitted to an error, and reduced the price by £30,000 - Now assuming they have admitted to an error, i would say that they have failed in there Duty of Care to The Client - and as such this failure has resulted in the OP not being able to purchase said property - Now regardless of the fact the property is Depreciating (£30,000 in 5 weeks is KINDA way outa kitla - unless the property was originally being sold in excess of £3,000,000)0
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Some lenders are asking surveyors to value new builds at their value today and what they would have achieved three years ago, and they seem to be lending based on the value three years ago. It maybe that the Nationwide are doing this and didn't take into account the three year valuation.
Are you sure the builder won't drop? Show them the new valuation.
I'd certainly try for some form of compensation but I don't know how good your chances will be of getting it.0
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