How to appeal a mortgage valuation?

LeserattePD

brit1234 wrote: »

Sorry if we are upsetting you but our intention is to get you and others a better deal saving money. The name of this forum after all is moneysavingexpert.com not payovertheodds.com.

If you want to fiancialy self harm then fine, all we are trying to do is help you not do this.

All I'm saying is that we're not paying over the odds. We were negotiating on another similar flat in the same area which was on at 295k (down from 355k last year), we were willing to settle at 275k with the developer paying the stamp duty. They weren't. We walked away, offered again two months later and the developer still wasn't willing to deal.

The assumption that developers will sell properties at any price just to get ridd of them might be true of the big ones (Wimpey, Persimmon, Laing, Cala) but the smaller companies won't neccessarily.

Sneckie07

for what its worth we've encountered a similar situation. Two identical town houses in a Grade 2 listed development, uninhabited since the conversion so are naturally new builds.

Both mortgage valuations were done by different banks within the Santander Group. Abbey Valued house A at £30k more than A+L valued house B.

New build valuations are a bit of a lottery I'm afraid.

poppy10_2

LeserattePD wrote: »

All I'm saying is that we're not paying over the odds.

But you have been handed a chance of paying £10k less and instead you want to 'appeal' the valuation so that you can pay more. Doesn't that seem perverse to you?

Rather than negotiating with the EA to use one of their dodgy surveyors to bump up the valuation, why not stick with the independent valuation you have now and use that to negotiate down the price of the flat you are buying?

LeserattePD wrote: »

Well the point about this flat is that it isn't your standard tiny high-rise with crappy finish. In this case when they say luxury it really is. Developer is qdevelopments.

Looks like just your standard identikit newbuild laminate shoebox to me:



http://www.qdevelopments.com/present_developments/ruislip/

SouthCoast

Looks like just your standard identikit newbuild laminate shoebox to me:

Agreed. I live in one!
Balcony in picture is larger than mine, but luckily I do not live above a retail development.

P.S. My walls are made of cardboard glued to a steel frame!

LeserattePD

SouthCoast wrote: »

Agreed. I live in one!
Balcony in picture is larger than mine, but luckily I do not live above a retail development.

P.S. My walls are made of cardboard glued to a steel frame!

Well these aren't; they're actually stone - even the ones in the bedrooms. That's exactly the difference between this flat and a Wimpey, Persimmon and so on.... flat. Retail development - it's a bed shop, not a take-away, besides we're facing out the back onto the roof terrace, not the front.

LeserattePD

poppy10 wrote: »

But you have been handed a chance of paying £10k less and instead you want to 'appeal' the valuation so that you can pay more. Doesn't that seem perverse to you?

Rather than negotiating with the EA to use one of their dodgy surveyors to bump up the valuation, why not stick with the independent valuation you have now and use that to negotiate down the price of the flat you are buying?

Looks like just your standard identikit newbuild laminate shoebox to me:

To get down to the valuation, would be 17.5k. It isn't cheap laminate, it's 4 mm oak. Real wooden doors as well. Bedrooms you can actually fit more than a bed into.

The builder is not willing to go down more than the discount on list price we already negotiated. I know you'll say "walk away" then. We've done that on the flat before, which was actually lower quality, 2nd floor, no lift, no balcony; no flooring or carpeting; but builder wasn't willing to agree to the price we wanted to pay (275k plus stamp duty and flooring).

Now 4 months down the line, we'd really like to move (commuting with my motorcycle atm which will not be doable in winter. Alternative is getting stuck in buses and the underground for 4 hours a day).

Dodgy surveyor - you automatically assume the one that came in at list-price is dodgy and the one that came in 20% lower isn't. Well we agreed a price that's smack bang in the middle of those two valuations and we think it's reasonable.

Vincenzo

LeserattePD wrote: »

We already negotiated a good discount on list price and also get the stamp duty paid, yet our valuation came in 10% below the agreed price (that's about 20% difference in valuations on completely similar flats)

Could the Surveyor have discounted the Stamp Duty from your 'purchase price'. This could, in part at least, explain the 'devaluation'.

Say for aruments sake you are paying £275k and the builder is 'paying' the SDLT of £8,250. Really your purchase price is £266,750. There may also be other incentives? Furniture, legal fees etc.

If the Surveyor is aware of this (and they should be), they are unlikely to value the property at £275k since this is not what you are paying. You may argue that it is worth more, but if that were the case, why is the builder selling it for less than it is worth?

Thrugelmir

LeserattePD wrote: »

Well the point about this flat is that it isn't your standard tiny high-rise with crappy finish. In this case when they say luxury it really is. Developer is qdevelopments (sorry can't post links on here), but go and have a look at their website.

The bank is lending you money to buy bricks and mortar, not a luxury finish. The finish will devalue and depreciate in the same way that a new car does. Even a Wimpey flat could be upgraded with a better finish.

Your lender is weighing up what they could realise for the property if you defaulted on your loan in say 5 years time. Remember until you've paid off your mortgage they still own the property.

Conrad

Thrugelmir has distilled it down to it's esscence.

If you get repossessed, the 'new-factor' could have been oblitorated - a bitter person would wreck the place anyway. Even if you just sell - on it's often the case the next in line wont attach the same value as 1) they didn't have any say over the finish so they dont value the finish the way you might 2) everything will of course be second hand!

Furthermore, new builds tend to receive a high proportion of investment buyers, and the shared communal staircases and so on can quickly deteriorate as tenants tend not to place so much importance on ongoing care and maintainence - just how it is.

ILW

I may be getting confused here, but is that £275.00 for a flat with the kitchen units in the living room?