Mortgage Valuation comes in HIGHER than purchase price

devon_guy

I'm buying a new build flat. There has been problems with completion owing to bankruptcy, new firm coming in etc. Anyway the price has always remained static (in 2 years), which I argued in the face of the current house price downturn. My mortgage offer expired so I applied for a new one with the Halifax. They've been out and valued it and their valuer has put it at more than the price it is up for. I find that very strange, particularly in this climate.

I certainly have no room for bargaining power now.

downs523

how much higher is the valuation stating the property is worth?

devon_guy

It's come in at 5k more than the asking price

devon_guy

It's up at 120k for a 1 bed new build, the mortgage valuation is 125k

deddogblues

devon_guy wrote: »

I certainly have no room for bargaining power now.

You have a mortgage offer and that is all the bargaining power you need.
The valuation is between the Halifax and you, the vendor will not know your valuation. Make an offer of less than you are prepared to pay and see how it goes. You can always up the offer later.

getmore4less

Definately worth a try to reduce especialy if you are close to LTV boundry and a reduction in price gets you a better deal.

FraudBuster

Was the valuer a friend of the current developers?

devon_guy

Independently sent by Halifax so I would say not.

payless

have you already exchanged?

maninthestreet

Where is this flat located? - a 5% increase in 2 years does seem to 'buck the trend'.

Ian_Griffiths_Halifax

devon_guy wrote: »

Independently sent by Halifax so I would say not.

It doesn't mean that they don't know each other, but I can't see a valuer increasing the value by £5k as a favour in any way and risk losing his job.

As deddogblues said, you have an offer letter and that's all you need. The Estate/Site Agents won't be expecting to see a valuation report on a new build flat, so make whatever offer you want, they don't have to accept it.