Survey Less Than Purchase Price ??`

jonnelson2008

Hello,

Just wondering if someone could shed some light and give me some advice or point me in the right direction.

Myself and my partner (FTB) signed an agreement for a new property house in early May this year. For which we signed and concluded missives within the first week.

But now we have just had a survey done on the property as this is required for things to mover forward with our mortgage. The purchase price back in May was £137k and the survey this week has returned at £130k.

After speaking to my solicitor, who is arranged through the builder has told me (and it says on the missives cover letter) that i should have arranged a survey before signing and returning the missives. But why didn't my solicitor ask me where the survey was when i returned the signed missives to him.

Because we are FTB, we can only get a 90% LTV which is supposed to include a 5% builder incentive, but if we go ahead at 130, then they will benefit more and we would then need to find an extra 7k ??!!

Please help !!
Thanks
Jon

brit1234

jonnelson2008 wrote: »

Because we are FTB, we can only get a 90% LTV which is supposed to include a 5% builder incentive, but if we go ahead at 130, then they will benefit more and we would then need to find an extra 7k ??!!

Sorry but you are going to have to find more than 7k, lets start with the 5% gift deposit. I'm pretty sure that lenders don't like gift deposits and you have to declare them. Most like you will need another 7.5K to cover that. If you don't declare it you are commiting fraud which can be punished by prison time. :eek:

Personally I can't believe the price has fallen so little when we have had 15% drops round the country. I wouldn't touch newbuilds especially as these overvalued properties are likely to halve in value by Christams 2009.

Sounds like to me you are unsuitable to buy now as you are very short on deposit and likely to be going into negative equity as soon as you buy.

jonnelson2008

Hi,

Thanks for the reply. The lender is BOS, and they are willing to take into account the builders 5% incentive and also accept our 5% deposit, so they are giving us the 90% based on that !!

Im just confused as to whether or not i should push for the house to be reduced to this survey price and will i succeed or am i barking up the wrong tree ??

Thanks
Jon

zappahey

jonnelson2008 wrote: »

Hi,

Im just confused as to whether or not i should push for the house to be reduced to this survey price and will i succeed or am i barking up the wrong tree ??

Thanks
Jon

If you have signed the missives then you don't really have any room for manoeuvre.

You're only real hope is that they might prefer to accept what you can pay rather than have to find a new buyer and then chase you through the courts for the shortfall.

jonnelson2008

Well yeah, thats kinda what im hoping for ??!!

But if its going to be 130, then i would hope they would then take the 5% off that price !!

Is it unlikely though ??!!

:rolleyes: