Mortgage company valuation - Too low!

Sarah_83

Hi there,

I wonder if someone could give me some advice on a mortgage issue...

My husband and I recently had an offer accepted on a first time buy. Initially, we had a number of problems securing a mortgage (we're not sure why, it was a different hurdle every day, and it took 5 weeks to get the mortgage in principle even though another bank with less preferable rates gave us one within minutes). We then organised for the valuation, and the bank's surveyors have valued the property at over £20k less than what our offer was - particularly weird as our accepted offer was over £40k less than the original asking price.

We are now wondering what to do next - we disagree with the valuation, but there's not a lot that we can do to change their mind. We are obviously only entitled to a mortgage up to the value of the valuation and we do not have £20k to make up the deficit.

The vendor has said he might be prepared to meet us in the middle, but this is with a number of strings attached, and we still don't have the spare £10k anyway!

I'm wondering if it's worth shelling out another £400 to get another survey done from an independent bank, or whether they are likely to come up with the same answer?

If anyone has any experience on how to approach this, I would be very grateful - we both strongly disagree with the valuation.

Many thanks,

Sarah.

_Andy_

Hi Sarah
Welcome to MSE

Is this is a newbuild by any chance?
Also bear in mind you're not entitled to a mortgage up to the value - you'll still need a deposit based on the value it's been given by the surveyor.

hillcats

I think I read somewhere else on here that all companies are now under-valuing properties to make sure they cover their own backsides, this will obviously have a negative effect when someone is trying to get a mortgage as I guess they will only allow a mortgage up to a certain LTV of their own valuation of the property, and their valuation is less than the estate agents who need the property to sell for as high as possible to increase their own % of the sale, vicious circle I'm afraid !

Charterhouse

If you can put together a dossier of information that suggests (strongly!) that the valuation is inaccurate, then it is definitely worth submitting that to the valuers and seeing if they will budge at all. They might not but that's the way to go about it. I don't think the bank is under any obligation to accept an independent valuation, given that they are the ones lending the funds.

JA1000

Hi Sarah

Welcome to our wonderful world of surveyors and underwriters who are single handidly killing our recovery.

You agree it's a fair value you have offered compared to other properties, the vendor agrees but along comes Mr surveyor and pulls the plug.

Can you please indicate what lending company you are using and what was the surveyor company? I had £50k - 75k knocked off the value of my house that I was remortgaging by tin pot outfit called Esurv who spent less than 5 minutes at the property. This mad the lender pull the plug immediately and there is no way round it. They have their appointed company and they are very unlikely to deviate.

If you think it is worth the fight and you can prove it, get on to right move NOW and search the area for similar properties BUT you must make sure you tick the box sold properties and SSTC. THEY WILL NOT LOOK AT ANY FOR SALE PRICES. I still think even with this evidence it will be a no go.

In my experience and a blunt answer this property is not meant to be for you and I would move on to the next whilst you still have a mortgage offer, that's the biggest hurdle.

As for the vendor if I was them I would be seriously worried I was trying to sell something £60k over value!!

getmore4less

Sarah_83 wrote: »

Hi there,

I wonder if someone could give me some advice on a mortgage issue...

My husband and I recently had an offer accepted on a first time buy. Initially, we had a number of problems securing a mortgage (we're not sure why, it was a different hurdle every day, and it took 5 weeks to get the mortgage in principle even though another bank with less preferable rates gave us one within minutes). We then organised for the valuation, and the bank's surveyors have valued the property at over £20k less than what our offer was - particularly weird as our accepted offer was over £40k less than the original asking price.

We are now wondering what to do next - we disagree with the valuation, but there's not a lot that we can do to change their mind. We are obviously only entitled to a mortgage up to the value of the valuation and we do not have £20k to make up the deficit.

The vendor has said he might be prepared to meet us in the middle, but this is with a number of strings attached, and we still don't have the spare £10k anyway!

I'm wondering if it's worth shelling out another £400 to get another survey done from an independent bank, or whether they are likely to come up with the same answer?

If anyone has any experience on how to approach this, I would be very grateful - we both strongly disagree with the valuation.

Many thanks,

Sarah.

Looks like you overvalued the property yourself if they are willing to drop another £10k

kmmr

JA1000 wrote: »

I had £50k - 75k knocked off the value of my house that I was remortgaging by tin pot outfit called Esurv who spent less than 5 minutes at the property.

E Serv - they did my place too!! Stayed for five minutes, commented 'how did you get this so cheap?' (being valued for an extra loan) and then proceeded to value it at exactly the price I paid!!



/end rant

kmmr

And after that rant, all i can say OP is that it is possible to appeal. Surveyors are such a pain in the a**

VIGILANT22

Waste of time appealing...

_Andy_

why pay a professional to tell you how much something's worth and the not believe them?

JA1000

_Andy_ wrote: »

why pay a professional to tell you how much something's worth and the not believe them?

I wouldn't call Esurv a professional organsation based on my experience. Barclays have a contract with them.

They are more than covering there ar*e under valuing quite clearly so there are no reprocussions and they keep the contracts.

They might as well stay at home to do the valuation, mine was a remortgage and supplied evidence SOLD houses but still they are worried the market is going to crash. Of course it's not going to recover when they keep applying their valuations.