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surveyor undervalued newbuild or builder overpriced new build
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Amanda23
Posts: 15 Forumite
I put deposit down on new build.
I have part exchanged my house with builder and there is a buyer after a week on market. Builder has made £3500 profit before estate agent costs.
Surveyor has undervalued the new build by £14000 or builder has overpriced the new build or both.
Builder is contesting the valuation and sending comparables to the bank
Bank will still go ahead with offering me a mortgage. I have a large deposit.
We are at the last stages and once solicitor gets the mortgage offer from bank we can exchange.
I'm dealing with their recommended solicitor and mortgage broker
What now ?
I have part exchanged my house with builder and there is a buyer after a week on market. Builder has made £3500 profit before estate agent costs.
Surveyor has undervalued the new build by £14000 or builder has overpriced the new build or both.
Builder is contesting the valuation and sending comparables to the bank
Bank will still go ahead with offering me a mortgage. I have a large deposit.
We are at the last stages and once solicitor gets the mortgage offer from bank we can exchange.
I'm dealing with their recommended solicitor and mortgage broker
What now ?
0
Comments
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I put deposit down on new build.
I have part exchanged my house with builder and there is a buyer after a week on market. Builder has made £3500 profit before estate agent costs.
Surveyor has undervalued the new build by £14000 or builder has overpriced the new build or both.
Builder is contesting the valuation and sending comparables to the bank
Bank will still go ahead with offering me a mortgage. I have a large deposit.
We are at the last stages and once solicitor gets the mortgage offer from bank we can exchange.
I'm dealing with their recommended solicitor and mortgage broker
What now ?
Presumably you have agreed a price with the builder?
Bank will continue to offer the mortgage as their LTV ratio is maintained. It is of no consequence to them how much deposit you put down provided it does not impinge on that LTV ratio.
You can try and negotiate with the builder (or get your solicitor to do so if you wish) Builder of course has a tight margin and may not budge.
Your choice, you either pay the money or walk away!!0 -
More likely newbuild overvalued. I guess you have to either find the extra money or walk away. Personally with it being overvalued and prices falling I would walk away rather than having negative equity from day one.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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offer 14k less or walk away...why should you pay over the odds for it? in the end it will work out at a hell of a lot more when you price in the interest over 25 yearsIt is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
Don't use their broker and solicitor...
Use this as an excuse to walk away, start again with your own choice of mortgage product and solicitor, and know what price you start at and don't go above...Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0
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