Mortgage valuation lower then purchase price. please help

tek-monkey

If you are paying more than people say it is worth, thats up to you. Just bear in mind that you are immediately in negative equity, if they are right. Also of course you can only mortgage to the amount the lender values it at, so you'll need an extra 35k lying around at least.

So glad I don't live in London, you'd get a 5 bed house with an acre of land here for 400k!

Sneckie07

anxiousbabe wrote: »

Hi, I am actually experiencing the same problem. I have reserved a flat in London for 400k (listed price 385k) as I added carpark space and valuation by the Bank came in at 350k. It is new built and not completed yet.

I am planning to renegotiate with the developer to get carpark space included at 385k. I know this is above valuation but all the units have been sold at listed price and I seriously doubt the developer will meet the valuation.

Is this sensible or am I still paying over the top?

Edit to add. If the build is not completed you may find that many people have bought these as investments and are struggling to find mortgages. There are several threads on here regarding that. Additionally you won't be able to find out what other flats have gone for if they haven't completed. If its the builder is telling you they've all gone for list prices then I'd take that with the proverbial pinch of salt it deserves.

Personally I'd hold out. Similar thing happened to us and the builder wouldn't budge...so we walked.

It was a pretty tough decision but I just couldn't enjoy a property knowing that I had paid more than the valuation....whether it was under valued or not.

We've since found a better property in a far superior location. We bought the last property in a development of four for £17k less that the others completed at. So naturally it valued up no problems.

brit1234

anxiousbabe wrote: »

Hi, I am actually experiencing the same problem. I have reserved a flat in London for 400k (listed price 385k) as I added carpark space and valuation by the Bank came in at 350k. It is new built and not completed yet.

I am planning to renegotiate with the developer to get carpark space included at 385k. I know this is above valuation but all the units have been sold at listed price and I seriously doubt the developer will meet the valuation.

Is this sensible or am I still paying over the top?

If you can safely walk, walk. These newbuilds are overvalued and poorer build quality. The banks know this and have clamped down.

Walk away or overpay.

anxiousbabe

sneckie: I have a letter from the developer confirming the prices sold for other units - surely they cannot fudge the figures given this case?

Milliewilly

Why don't you check on Zoopla.co.uk or similar site to make sure?

Cidersid

I have a pile of £20 notes ----you can have them at 25 quid each!!!!:D

SouthCoast

I know of two blocks of flats that were completed in Summer 2007. At the time the developers were saying "Last one remaining", "90% sold".

Both blocks still have overpriced, unsold units.

P.S.
Berkeley Homes have been saying this since Summer 2007:

SHOW APARTMENTS RELEASED FOR SALE. LAST FEW APARTMENTS REMAIN.
Last few apartments at Horizon are ready to move into today!

Sneckie07

anxiousbabe wrote: »

sneckie: I have a letter from the developer confirming the prices sold for other units - surely they cannot fudge the figures given this case?

go on to the land registry or alternative websites like houseprices dot co dot uk and check to see what other flats have completed for.

Personally I wouldn't take the developers word on it without backing up the figures.

Fire_Fox

anxiousbabe wrote: »

sneckie: I have a letter from the developer confirming the prices sold for other units - surely they cannot fudge the figures given this case?

Estate agents frequently put a 'Sold' sign on a house that is merely under offer. The developer has a vested interest in screwing you for every penny so do your own homework, you are spending tens of thousands of pounds not buying a new pair of shoes. :rolleyes: