Advice please

DangerMouse1972

I am in the process of buying a newbuild shared ownership flat, I have read all the pros and cons on this site and have decided to go ahead.

I have been approved a morgage, the bank have done a survey and have valued the flat at at 5000 less than the asking price, what I want to know is the HA likely to drop the price? If not is there anything I can do?

80% of the flats have now sold so I am worried that they will just another buyer.

DM1972 x

Doozergirl

You can only ask!

Kev09

The banks are a nightmare at the moment, if the others went for your asking price, an underwriter may take that into account.

Doozergirl

If you want the property at the better price then you have to stand firm. 80% may have sold but that means that 20% haven't - plus yours at the moment as no doubt they update their marketing bumph three seconds after a reservation.

Did you use their mortage broker? If you did then they'll be using lenders they think are sympathetic to them. If they've undervalued it I don't see they have any choice but to accept a lower offer but you have to give them the impression that you will walk away if needs be. Tell them, the valuation is independent and house prices are not rising, you are very concerned by this. Make it their problem (which it is), not yours.

Don't sound like you're falling over yourself to buy it, which is how you sound to me

DangerMouse1972

I have not slept a full night since I started this whole process, I fell in love with the flat soon as I saw it and its in a great area.
I really do not want to lose out.

When I first started looking at this property it was on for 175,000 when I went to veiw the flat it had dropped to 170,000.

Thank you Doozergirl I will take your advice and try and play it cool.

DM1972 xx

inglesito

Don't worry too much - shared ownership flats have to be independently revalued every 3 months, so find out when that's going to happen as it could be very soon. Explain your situation to the housing association (as far as I know they cannot change the selling price until revaluation takes place) and see what they recommend. I think mortgage offers are valid for 3 months, so you should be able to push it through. The one thing I would try to do is make sure you don't lose more money than necessary. This might mean getting the housing association to agree to refund any reservation fee if they won't budge on price and holding off on instructing solicitors until you're sure it's happening. I have found that HAs need reminding that they are providing a public service and aren't just there to make money out of people who need help! Also, remember they need you more as a buyer at the moment.

I was concerned this would happen to me as I am also buying an SO property, but the valuation came back fine.

All in all, try to relax and get plenty of sleep - I'm sure it will work out OK, but if it doesn't, there are lots of other flats out there :-)