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

bubblesmoney

hethmar wrote: »

But I dont understand - 5 days before completion - surely your mortgage deal should be done and dusted, signed up, no way out either side since exchange?

there will be ways out in any contract. there will be get out clauses.

to the OP - please see if any of these help u

see these links http://en.wikipedia.org/wiki/Misrepresentation this might be applicabe when initially ur mortgage provider agreed one valuation and u signed the contract based on this, then they have revised their offer after u made financial contracts based on their previous decision and leading to losses for you.

other links that might help u get out of the contractual obligations http://en.wikipedia.org/wiki/Hardship_clause obviousl u got screwed with the change in circumstances after nationwide made retrospective changes to ur mortgage after u signed contract.

http://en.wikipedia.org/wiki/Severability_clause see ur contract terms and conditions to see if there are any such clauses. plus the below ones as well

http://en.wikipedia.org/wiki/Impossibility

http://en.wikipedia.org/wiki/Force_majeure

http://en.wikipedia.org/wiki/Contract_law

i am not a lawyer bu this must have happened to others as well and there will be ways to get out of contractual obligations legally in such circumstances beyond ur control even if u have to sustain small losses in the bargain. mention to nationwide that u will report them to the ombudsman +/- use courts ( https://www.moneyclaim.gov.uk/csmco2/index.jsp ) to recover ur losses from them and also to recover any losses that the seller might try to claim from u for breach of contract. DISCUSS ALL THESE ISSUES WITH UR SOLICITOR NOW

ur best option is for seller to decrease price or allow u to get out of purchase without losses. no point buying a house by paying 30k more than valuation by bank

best of luck

mbga9pgf

I think the big thing is - have you signed anything to agree to the mortgage as was? If not, legally, not a leg to stand on I am afraid. Agree with the other poster Nationwide have saved you 30K so get over it.

Incisor

unite79 wrote: »

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 - ...

That argument stacks up for me, although whether it would fly in court is a question which requires professional advice.

benthebookie

Thanks for the posts guys....I have to say some more helpful than others!

To cut a long story short....good news! The builders have dropped it!

So in the end it's hats off to Nationwide for saving me 30K!



And on the earlier points some people were making, I had a CONFIRMED IN WRITING mortgage offer, which they then changed......still think its bad, but ok in the end!

mikthe20

benthebookie wrote: »

So in the end it's hats off to Nationwide for saving me 30K!

No, they saved you £60k!!!! Purchase price + interest over 25 years. Go overpay that mortgage and save yourself more!

brit1234

benthebookie wrote: »

Thanks for the posts guys....I have to say some more helpful than others!

To cut a long story short....good news! The builders have dropped it!

So in the end it's hats off to Nationwide for saving me 30K!

More evidence of Developers starting to break under the preasure. The simple fact is they are extremely desperate now and the cracks in their dam are at a critical size.

I predict this March massive developer cuts after the failure of the spring bounce:

I just advise FTBs & STRs to hold their nerve and save as we look at the final few days left of high prices:beer:

GarethNI_2

I was going to reply to you earlier... as I felt quite bad for you that you might lose the house...potentially deposit etc aswell... and being a first time buyer myself and moving int he next few weeks I felt quite bad for you.

However if I were you I would be wholly thankful that someone in the valuations dept. for the underwriters noticed this and in the end caused you a (slight) bit of pain/worry... they have quite possibly saved you from being in negative equity and definately saved you £60K - the builders are the folk I'd be creaming bloody murder at if I were you!!

hethmar

Wonderful news - so Nationwide did save you £30k after all. Lucky

geoffky

dont worry it would of dropped 30k anyway...

brit1234

geoffky wrote: »

dont worry it would of dropped 30k anyway...

and most likely a lot more.:D