Valuer put brakes on getting a mortgage. Help!

mastermill

Had a mortgage lined up with C&G for a property worth £85,000. It's a 90% mortgage so we're borrowing £76,500. The only problem was the valuer has decided put a holt on things because the property is a maisonette above commercial premises and it's next to a council estate.

My question is 'does this mean we will run up against this problem with every other lender?'
&
If so doesn't that render the property un-buyable?

Any help would be appreciated.

Sonofa

I think you need to explain in a bit more detail. Why would the valuer halt things? The valuer values, that's all. The lender makes the decisions.

Over a shop and next to a council estate mean nothing. Are you actually saying that the valuer has made a valuation at less than what you have agreed to pay for it? Sure location has an effect on price, but what I think is the real problem here is that the asking price or price that you have offered is above what the lender is willing to lend based on the valuation, so the answer will be 'yes' you will have the same problem regardless of who you approach unless their valuations are wildy more than this one.

Revise your offer based on this new ammunition and save yourself some money.

poppysarah

Agreed. Lower the offer massively.

Do you know how noisy the shop is?

mastermill

poppysarah wrote: »

Agreed. Lower the offer massively.

Do you know how noisy the shop is?

It's very quiet, the whole parade and area is very quiet.
The property has already dropped from £125,000 all the way to £85,000. Don't know if we'd get an acceptence any lower.

Thanks for the advice. I'll keep on with it and let ya know.

huntersc

mastermill wrote: »

It's very quiet, the whole parade and area is very quiet.
The property has already dropped from £125,000 all the way to £85,000. Don't know if we'd get an acceptence any lower.

Thanks for the advice. I'll keep on with it and let ya know.

£125k was a silly price in the first place. It should never have been £125k so that figure is actually irrelevant and means nothing.

It sounds like the property should be on at an asking price of £85k with a reduction in line with what thew valuer has stated.

If he has advised the bank not to lend at any level then don't even bother going to other banks, take his professional advice and pull out. Why buy a place that you'll have problems selling in the future?

i would be inclined to do as the valuer says and not what the estate agent or vendor suggest.

Premier_2

As Sonofa said, what did the valuer actually say?

Has he just valued the property less than you think, or has he said the property is unsuitable for mortgage purposes?

ShelleyC_2

In March 08 I was cursing a surveyor who'd under valued a property I'd put an offer on.

I tried to meet the seller in the middle but she wouldn't have any of it. Now I realise he did me a huge favour even though I still think he was being very harsh.

Enfieldian

This sort of property (above a shop) and ex-council, short lease and unconventional build types are the ones that will suffer most in this market.

Going back to the early 90s they were almost impossible to shift at any price.

Building societies will want to see a very large deposit to minimise their risk before they will lend on or "value up" these.