Help with Mortage Valuation please

HAMISH_MCTAVISH

This thread has been linked to from hpc....

http://www.housepricecrash.co.uk/forum/index.php?showtopic=150894

So no wonder many of the replies have been distinctly unhelpful.

maddie67

HAMISH_MCTAVISH wrote: »

This thread has been linked to from hpc....

http://www.housepricecrash.co.uk/forum/index.php?showtopic=150894

So no wonder many of the replies have been distinctly unhelpful.

:eek: oh my God! How dare they! I cant believe that someone has posted what they have on there and have the nerve to make out Im stupid!

Im not some idiot who wants to pay more for our house, why would you automatically asume the surveyor is right and the builder is the one who is expected to pay for his mistake?

nearlynew

maddie, you haven't provided any figures but i'll make my own up just to illustrate what I'm saying...........


Say the house is up for 200k and you have the required 25% deposit of 50k. Santander are willing to lend 75% or 150k.

They survey the house and says it's worth 180k so now they'll only lend 135k

That is good news.

Remember - it's the same house.

Instead of thinking "I have got to find another 15k if i want it" think "I can have it for 15k less"

There are many people in the same position as you and all it takes is to hold off for a while.
Tthe price will eventually come down.

maddie67

nearlynew wrote: »

maddie, you haven't provided any figures but i'll make my own up just to illustrate what I'm saying...........


Say the house is up for 200k and you have the required 25% deposit of 50k. Santander are willing to lend 75% or 150k.

They survey the house and says it's worth 180k so now they'll only lend 135k

That is good news.

Remember - it's the same house.

Instead of thinking "I have got to find another 15k if i want it" think "I can have it for 15k less"

There are many people in the same position as you and all it takes is to hold off for a while.
Tthe price will eventually come down.

Thanks, I see what you are saying, but the builder is unlikely to drop the price by 20k (it would be great if they did, obviously) all they have said is they will see if they can re-jig the figures a little (but not reduce the price)

I think Im not looking at it calmly enough, I need to take a step back and chill ha ha

If Santander had been a little more helpful today, instead of being so obstructive, I might have had more faith in them. If they had agreed to have a look at the other valuations (ok, if they really exist, but now we will never know) and took on board the issue of the leasehold/freehold, then I would have been happy with that if they then came back and still valued it at the same price. But unless we pay them they wont even discuss it, the builder wont do anything until they review it, talk about catch 22!

Si1

Santander need security on their loans. Otherwise they may go bust. Simples.

Walter_J

I think Santander are doing you a big favour.

Go to the builder and tell them that you can only proceed at Santander's valuation. If they won't drop the price pull out, sell your current house and rent somewhere.

House prices are falling - chances are that you'll be able to buy the same house next year £50k less than the current asking price! Santander know this - which is why they won't lend you any more money.

The builder also knows this - which is why they will almost certainly drop another twenty grand now!

Doctor_Gloom

maddie67 wrote: »

!)

Basically a Surveyor arrives at his valuation by looking at what is for sale in the immediate vicinity, then, they will check websites like 'our property' etc, to see prices of recently sold properties, they use this info for their comparables. They then give their opinion as to future saleablity etc. When the Valuer came around the house we are selling, I handed him all the information I had collated from these sources and he thanked me for saving him time!

My point here is, the house we are buying is on a new site and we were the first to have our valuation done, there is nothing else for sale in the immediate vicinity apart from other new houses, and all other properties that have been sold are older, smaller properties.

In my book the surveyor is impartial whereas the developer most certainly isn't. The developer has a vested interest in getting you to overpay. You can't blame the bank for believing the surveyor rather than some dodgy developer.

Doctor_Gloom

HAMISH_MCTAVISH wrote: »

This thread has been linked to from hpc....

http://www.housepricecrash.co.uk/forum/index.php?showtopic=150894

So no wonder many of the replies have been distinctly unhelpful.

Why were you on HPC? They banned you for being a troll. Why do you keep returning to where you're clearly not wanted?

Anyway, nearlynew and myself are established MSE members and have no connection to HPC so your slur is totally unwarranted.

harz99

Doctor_Gloom wrote: »

In my book the surveyor is impartial whereas the developer most certainly isn't. The developer has a vested interest in getting you to overpay. You can't blame the bank for believing the surveyor rather than some dodgy developer.

I think that view is somewhat niave; the surveyor is not impartial as he/she is instructed by (in this case) Santander, not the OP.

I suspect the brief from Santander would be to give a valuation based on the price achievable for a quick sale should Santander need to foreclose on the mortgage; not on the market value (perceived or otherwise) of the property - hence the lower valuation.

The OP is between a rock and a hard place - on the one hand they have to find a way of funding the difference between Santander's and the builders valuations of their intended property, on the other hand they face paying a £5000 penalty to redeem their Santander mortgage and worse still possibly losing their buyer due to delays if they look elsewhere.

Turning this whole situation around, will the builder offer the OP as a part exchange the amount the OP's buyer has + the £5000? If yes then it would be easier to go that route and use another bank/bs for the loan.

If no, and the builder won't reduce the price, and as I don't see Santander changing their mind (they are not slated for poor customer service for nothing), the OP is left with only one choice and that is to swallow the £5000 redemption penalty and quickly go elsewhere for the mortgage (maybe find out which loan company had the better valuations done on the other properties) before their buyer drops out.

Either way best wishes to the OP, and another reason to beware of doing business with Santander.

maddie67

harz99 wrote: »

I think that view is somewhat niave; the surveyor is not impartial as he/she is instructed by (in this case) Santander, not the OP.

I suspect the brief from Santander would be to give a valuation based on the price achievable for a quick sale should Santander need to foreclose on the mortgage; not on the market value (perceived or otherwise) of the property - hence the lower valuation.

The OP is between a rock and a hard place - on the one hand they have to find a way of funding the difference between Santander's and the builders valuations of their intended property, on the other hand they face paying a £5000 penalty to redeem their Santander mortgage and worse still possibly losing their buyer due to delays if they look elsewhere.

Turning this whole situation around, will the builder offer the OP as a part exchange the amount the OP's buyer has + the £5000? If yes then it would be easier to go that route and use another bank/bs for the loan.

If no, and the builder won't reduce the price, and as I don't see Santander changing their mind (they are not slated for poor customer service for nothing), the OP is left with only one choice and that is to swallow the £5000 redemption penalty and quickly go elsewhere for the mortgage (maybe find out which loan company had the better valuations done on the other properties) before their buyer drops out.

Either way best wishes to the OP, and another reason to beware of doing business with Santander.

Thanks for your reply. Im looking into trying another lender, have spoken to FA. Its all a bit awkward as OH is on deployment for the next weeks and its really difficult to contact him.

I thought if I slept on it, things would look better this morning, but they dont!

We are buying the new house through the Builders Easy Mover scheme. They took over the marketing of our property and offered us 185k for ours which is 9k less than our original asking price. They have marketed ours for 179,950, and within 3 weeks they accepted and offer of 177k. We will still get 185k.

If we pull out of the purchase, to try and buy something else, the buyer of our property will still only pay us 177k. If we pull out of the sale of our property, remarketing our property will be more difficult as it has been marketed on Rightmove etc for 14k less than our original asking price so the builder could get a quick sale.

Im just going to bang my head against another few walls!