valuation for mortgage too low

ar25un

I have agreed a price for a new build two bed flat, in Leicester, for the price of 133,000. This was knocked down from 152000, and they have also added a few other incentives such as flooring and some applicances. However Natwest who I have got my mortgage with valued the flat to be 122,500. All the properties being sold have been bought really quickly, as the 2 bed flat I have reserved is the last one available. They are building more in the future but state they are waiting for the prices to go up.

The sales people are not wiliing to negotiate on the price stating that natwest value new builds 10 % lower then marker price.

I do not know what to do? Do i go with another bank for my mortgage, but i have got such a good interest rate, and cannot afford any higher. Do i get an independent property valuator to give me a second opinion, or do i just pay the asking price for the flat even though it is significantly less then the valuation price?

Please Please Help
Anna

_Andy_

Why would you still want to pay more than what it's worth?

seraphina

How do they think prices are going to rise on their flats if banks are giving them lower valuations than the sticker price?

Walk away - there are plenty of new build flats on the market. You're a buyer with a mortgage in principle who sounds ready to proceed. You should have the upper hand in this situation!

And I wouldn't believe that the flats are selling until I see Land Registry data, no matter what the sales people say.

MORPH3US

If you can afford it and if you really want the flat then its entirely up to you OP.

If they won't budge on the price and the bank won't budge on the mortgage then you will just have to fund the difference yourself (again, if you can afford it).

As others said though, if the bank say its worth less than what you are paying, you could be throwing a chunk of money down the drain.

When you say you have "agreed a price" is that verbally or have you signed anything / paid a deposit?

jamief

Why on earth would you pay more for a newbuild flat than it is worth? Stop thinking with your heart and start thinking with your head!

charlesworth82

happened to a friend of mine - they just got someone else to do the valuation and went with another mortgage lender

ar25un

I have signed a form, with the price on it. Does that affect my chances of negotiation?

MORPH3US

ar25un wrote: »

I have signed a form, with the price on it. Does that affect my chances of negotiation?

What form have you signed... it may be too late to back out altogether depending on what the form is...

ar25un

was a reservation form. I put down a 500 pound deposit, and then signed this paper, to state i was reserving it, for that price. It was not a contract.

CloudCuckooLand

They will expect you to negotiate. They know the score. Plenty of examples in the forum of people getting decent chunks off the price.

If you feel like funding the developers Xmas party, find another lender/surveyor who will help you pay the agreed price.

mortgage-adviser-now

Even if the valuer is 5% out you are still paying £6,000 too much.

If it is the last flat on the development they need it shifted as it is expensive keeping staff available to develop one sale.

They need to sell more that you need to buy.

Play hardball with them.