Urgent Help Needed

momo1975

Hi all, need some urgent advice!

After 3 mths messing around with the abbey they finally gave me a mortgage offer, BUT the valuation came back under what the house builder said they were gonna sell to me for and now they are trying to challenge back the valuer, in the meantime i am in a state of limbo and the builder is not doing much, what can i do?

i will be billed for legal fees! i have a £1k reservation fee

Running_Horse

There was a discussion on here a few weeks ago with exactly the same situation. The general advice was to threaten to withdraw if the price was not dropped by the required amount, which the builder immediately did. Better to lose £1,000 and legal fees now than many more thousands in the near future. Do you really want to pay more than it is worth?

http://forums.moneysavingexpert.com/showthread.html?t=1286067&highlight=nationwide+valuation

Doozergirl

I agree with the above. developers must be getting used to this by now, gaining you reservation fee isn't going to help them.. If you didn't already obtain a very hefty discount above what they were already offering you then now is the time to put your foot down.

If your mortgage company don't think it's worth what you're paying then you need to consider carefully here - who do you think is correct? The ones trying to sell you a house for the best money or the bank looking to obtain good security and a surveyor with knowledge of comparable prices in the area?

This is your call. Feel confident to knock them down instead of feeling that they are powerful here - they most certainly aren't when they are getting downvalued all over the place. Demand the discount and tell them you will walk away - you need to know it's worth what you're paying and this should be the thought in your mind anyhow!

simple2rent

It is quite normal for new builds to be over valued by the seller, but in today's market if they want to complete they have to negotiate. Tell them you cannot complete due to the down valuation and the price has to be reduced by £XXXX for you to have enough funds to complete .... making sure you have some room for negotiating.

momo1975

Thanks to everyone for your help, i will contact the developer today

momo1975

p.s just to give u heads up the difference is only £5k so i don't think Bryannt Homes are really being fair! Sent email to MD and various directors inc my own sols today

momo1975

right news is on...they are not going to honor the valuation :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad:

Running_Horse

Who? The builder? I am very surprised they would lose a sale for the sake of £5,000 in this climate.

Conrad

Don't worry there are loads of bargains out there.

momo1975

Running_Horse wrote: »

Who? The builder? I am very surprised they would lose a sale for the sake of £5,000 in this climate.

yeah bryant homes wont, but they are 'trying' to rework something.....

Trollfever

The valuation is for the benefit of the lender, not the developer.