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Over valued house undervalued by Lender
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New builds are now valued as if they are being sold for the first time so the newness that you pay a premium for is lost in the valuation.
Also as others have said the 5% deposit from the builder will be taken from the overall valuation, because if you sold it on you would not pass on the same 5% making it worth 5% less to the next buyer.
When the market was booming, nobody cared because the house was expected to gain the value of the gifted deposit in no time, different story now though.0 -
DVardysShadow wrote: »OP said builder is PAYING 5% not LENDING. Hence, as I said, the house is EFFECTIVELY being sold for £166250
Ah, I see what you mean. Even if the builder 'pays' then dont they have a right to 5% ownership or equity?0 -
Exactly. Assuming it is not shared ownership.Ah, I see what you mean. Even if the builder 'pays' then dont they have a right to 5% ownership or equity?Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Hi Guys, just to give you an update, we now seem to have struck a deal where we now don't have to pay the shortfall as what the builders have done is to up the value of our house at present from 90k to 95k in the part exchange deal! Oh and to those wanting to know we will have 100% ownership.
Thanks for the responses.0
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