Valuation problems

barneyccc

Hi I have had a difficult experience with the Co-Operative Bank regarding a valuation of a property I am looking to buy.

I have been approved for a mortgage for 95K on a property costing 155K. The other 60K I am putting in myself.

The valuation has come back valued at 155K and Co-Op have declined the mortgage for the reason that the property does not offer satisfactory security. They are refusing to change their minds and cite that the property is in a poor condition. No further surveys have been recommended and there are no essential repairs required. The valuation report also recommends the property as suitable security for Co-op for mortgage purposes.

I am confused about the decision as the mortgage is only 61% of the valuation so I cant understand how it does not offer security. I am wondering what is the point of paying for a valuation if the Co-Op are just going to ignore it's recommendations.

Does anyone have any idea why the mortgage has been declined as I cant seem to get a straight answer from Co-op and can i get my money back ?

opinions4u

barneyccc wrote: »

The valuation has come back valued at 155K and Co-Op have declined the mortgage for the reason that the property does not offer satisfactory security. They are refusing to change their minds and cite that the property is in a poor condition.

- what type of property is it?
- what bits of the property do you think are in poor condition?

The valuation report also recommends the property as suitable security for Co-op for mortgage purposes.

It's not the valuer's money to lend, so this isn't relevant.

I am confused about the decision as the mortgage is only 61% of the valuation so I cant understand how it does not offer security.

There are potentially hundreds of reasons. Lack of kitchen or bathroom. Term left on lease. Construction of property. Lots more too.

Basically, if they don't think they can sell it should they have to repossess, then they won't lend on it.

I am wondering what is the point of paying for a valuation if the Co-Op are just going to ignore it's recommendations.

They may have read something on the valuation report that they don't like. Can you post all the comments?

Does anyone have any idea why the mortgage has been declined as I cant seem to get a straight answer from Co-op

Some suggestions above. Ask the question "why doesn't the property provide adequate security?". Escalate it until they give an answer or a different reason for not lending.

and can i get my money back ?

No. You paid for a mortgage valuation and that's what you got.

Mrs_Bumble

Interesting, as Opinions4u states above you need more information.

My first thought was is it a new build flat and maybe they are over exposed in a particular postcode area but you state that the property in poor condition their reason?

Is it ex council house? Again they maybe consider over exposed in a certain post code area.

Is it unusual construction?

You need more information really, you paid for the valuation and so I don't see why they won't give you a full explanation.