Buying a new build flat for buy-to-let - lender valuation has come back really low

sooz

SouthCoast wrote: »

:rotfl:

I am the only resident in my block of 9 [STRIKE]flats[/STRIKE] luxury, executive, designer apartments.

are you the little old lady living alone in the large block who was on the news?
I hope you have some lovely communal facilites that everyone else is contributing towards.

AMILLIONDOLLARS

adusad wrote: »

hmm... well thanks for the not so constructive comments 'amilliondollars'... that helps my stress no end...
:-(

Just telling you like it is! You gambled on making money and you lost, like so many before you, you thought you were in a win win situation, buy property, get someone else to pay your mortgage for you, in the meantime the property would increase in value.

If the property had increased and not gone down by 42% we wouldn't be having this conversation.

furthermore as you have now contacted the group I have introduced you to, yes I saw your message to them, I think my previous comment was very constructive.

AMD

theartfullodger

adusad states "I still can't believe that they have valued it 42% below what it was on at a couple of years ago. "

- er, I think many other posters here can & that's what's the news has been reporting for some time...
#Sorry!

Lodger

LittleMissAspie

adusad wrote: »

Also, their claim that the valuation is low because of the development not being complete - well it will be when I am able to complete next month - so I just don't understand that?!!??!

I don't know much about valuations but wouldn't they have to value it for the day they looked at it? They can't judge how much it will be worth in a month's time, 10 year's time, after you've renovated it or after drug addicts have moved in and trashed the place. They can only judge it NOW.

I guess you have to try and renegotiate the price with the seller, good luck though.

Fire_Fox

adusad wrote: »

Thanks for the advice - I still can't believe that they have valued it 42% below what it was on at a couple of years ago.
I am going to check the paperwork as to when the actually said it would be ready then - though I think it was Q1 2009, so they are not too late.
The development is essentially complete, just a last few communal areas to finish off - though other buildings nearby are not complete.

Has anyone managed to renegotiate with developers in this way before - what's the best way of going about it? I have spoken to them once a few weeks ago, but that was before the valuation came back yesterday... any hints / tips appreciated...

Why on earth would you want to pay more than the market rate for the flat? You should be delighted you have a low valuation, either you have been forewarned or you are getting a bargain.

It doesn't matter how late the developers are finishing, it matters that they are late. You may well be able to withdraw completely (and get your deposit returned) or at least threaten to withdraw completely. Check your contract: this and the valuation is the bargaining tool you need.

'Essentially complete' shows your inexperience. The developer could go bust or pull the builders out the minute you complete the sale, and never finish your block or never finish adjacent blocks. Snagging is often a very long process and sometimes the dispute is never resolved.

If you still want to go ahead with the purchase I recommend you consult your conveyancer. Any changes to your current agreement will probably need to go through them, and definitely need to be put into writing.

Georgie4

AMILLIONDOLLARS wrote: »

Just telling you like it is! You gambled on making money and you lost, like so many before you, you thought you were in a win win situation, buy property, get someone else to pay your mortgage for you, in the meantime the property would increase in value.

If the property had increased and not gone down by 42% we wouldn't be having this conversation.

furthermore as you have now contacted the group I have introduced you to, yes I saw your message to them, I think my previous comment was very constructive.

AMD

Do you realise how mean and bitter your posts are ! How can you possibly be so happy that someone - no matter what their financial position is- has lost out financially to a company. Thought the whole point of MSE was to help and support one another:D

AMILLIONDOLLARS

Georgie4 wrote: »

Do you realise how mean and bitter your posts are ! How can you possibly be so happy that someone - no matter what their financial position is- has lost out financially to a company. Thought the whole point of MSE was to help and support one another:D

He's an investor he wasn't helping anyone else but himself. First timer buyers were being priced out the market by these investors, forced to live at home with their parents, or paying high rental fees.Also genuine owner occupiers were finding that the value of their properties were being depressed because of the high rate of low quality renters in their blocks. He should have known that the market would have gone down as well as up, unfortunately it went down. He signed an agreement to purchase a £345,000k+ flat:eek: in a fairly run-down area - yes the Olympics (Shooting I believe) will come to Woolwich - but prices in that area did not justify what he was prepared to pay for this investment - sheer madness - I put this one down to GREED, HIS and the DEVELOPERS. So no support from me, you pays your money you take your choice.

Not bitter but telling it how it is!!

AMD

carolt

I assume that had the price doubled in those 3 years, the OP would of course, have agreed to pay double the figure he'd signed up to, out of the goodness of his heart? No?

Or would he have kept his unearned profit?

Let's guess....

If he took a gamble on prices continuing to rise or at least not falling, that was his decision alone - no-one forced him or made him buy. He didn't do it out of necessity, just so he could have a roof over his head (as some who bought at inflated prices did).

If prices then fell, and he is now out of pocket, he has no-one to blame but himself, for taking a gamble he couldn't afford.

Maybe next time, he'll think twice before assuming that BTL = easy money. Hopefully, others will learn from his example too, that in this country, you can't just walk away from your mortgage debts, and think carefully before paying ludicrous prices for property.

As another poster said - one look at Woolwich should make it clear why it was a lousy investment.

Gorgeous_George

My flat is on the ground floor and I do not have any neighbours above me. It's cool.

GG

westv

Gorgeous_George wrote: »

My flat is on the ground floor and I do not have any neighbours above me. It's cool.

GG

That's a bungalow.