Help with Mortage Valuation please

Eric1

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.

Exactly.
But I'm afraid that "next year's quick sale" value is the new market value in the current climate, at least for those with less than 25% deposits.

HAMISH_MCTAVISH

OP, do not be fooled by the crashaholics, there is no doubt banks are pressuring surveyors to deliberately under-value properties to a level that could be achieved in a fire sale, as opposed to the legitimate valuation of what can be achieved in the open market between willing buyers and sellers.

There have even been cases of the same surveyor valuing the property differently when employed by the bank and then again by the houseowner!!!

http://www.knowyourmoney.co.uk/house-sellers-beware-of-undervaluation/

Fortunately, consumers are now fighting back, and can in some cases pursue legal action against surveyors who engage in such a practice.

http://www.yourdispute.co.uk/Professional-Negligence-Claims/Property-Dispute.asp?ref=google&gclid=COvU-dW9_6MCFVMB4wodwXfkHA

For a balanced perspective on the inhabitants of the forum that linked to here, just read this....

https://forums.moneysavingexpert.com/discussion/2227027

maddie67

HAMISH_MCTAVISH wrote: »

OP, do not be fooled by the crashaholics, there is no doubt banks are pressuring surveyors to deliberately under-value properties to a level that could be achieved in a fire sale, as opposed to the legitimate valuation of what can be achieved in the open market between willing buyers and sellers.

There have even been cases of the same surveyor valuing the property differently when employed by the bank and then again by the houseowner!!!

http://www.knowyourmoney.co.uk/house-sellers-beware-of-undervaluation/

Fortunately, consumers are now fighting back, and can in some cases pursue legal action against surveyors who engage in such a practice.

http://www.yourdispute.co.uk/Professional-Negligence-Claims/Property-Dispute.asp?ref=google&gclid=COvU-dW9_6MCFVMB4wodwXfkHA

For a balanced perspective on the inhabitants of the forum that linked to here, just read this....

https://forums.moneysavingexpert.com/discussion/2227027

Thank you so much for those very useful links. Im shocked that this is a widespread problem, but seeing that there are other people this has happened to has really helped.

As for the Old Boys club, pah, as some of them seem to be surveyors, im not surprised they are being so hostile!

They are just being typical of type - Pompous!

harz99

maddie67 wrote: »

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!

You have my sympathy, for what it's worth my daughter is in the same position as you but she is not trying to sell and move. Do you have power of attorney to make decisions for your OH, as without that it will be almost impossible to move forward?

If you have PoA, well you already know what to do.

I am really sorry I can't be more positive, but good luck anyway.

brit1234

Maddie if you want to overpay for your house when prices are falling then that is your right. We can't make you haggle for the home all we can offer you is advice and you are free to ignore.

It is well known that most newbuilds are extremely overvalued and there was mass house price fraud during the boom. Lenders are aware of this and don't trust builders prices. Thus the like their own independant surveys to protect their money. Especially when resale values at repossesion auctions on these repossession is so much lower.

Personally I would haggle, I wouldn't want to risk all that negative equity. However if you can find a lender willing to over lend and your happy with it I wish you good luck.

DervProf

HAMISH_MCTAVISH wrote: »

OP, do not be fooled by the crashaholics, there is no doubt banks are pressuring surveyors to deliberately under-value properties to a level that could be achieved in a fire sale, as opposed to the legitimate valuation of what can be achieved in the open market between willing buyers and sellers.

Mmmmm....

I believe that property values are largely based on mortgage availability, as most property buyers use a mortgage to buy a property. If banks can`t, or don`t want to lend, there would certainly be a downward pressure on house prices. Therefore the valuation of property is largely controlled by the banks.

Isn`t it the case that independant survyor`s valuations are largely based on what they think a property will sell for, and therefore is largely based on available credit ?

It follows that if the banks "under value property", they are actually valuing the property, not under valuing it. Something is only worth what somone is willing to pay for it, or if they are borrowing money to buy it, what the lender is willing to lend.

About time the banks acted with a little more caution, look at the mess they got into when they weren`t. It`s payback time.

Eric1

HAMISH_MCTAVISH wrote: »

OP, do not be fooled by the crashaholics, there is no doubt banks are pressuring surveyors to deliberately under-value properties to a level that could be achieved in a fire sale, as opposed to the legitimate valuation of what can be achieved in the open market between willing buyers and sellers.

Yes, wouldn't that be nice, an open market full of willing buyers needing no mortgage from those naughty banks, like the market for mobile phones

harz99

DervProf wrote: »

Mmmmm....


Isn`t it the case that independant survyor`s valuations are largely based on what they think a property will sell for, and therefore is largely based on available credit ?

It follows that if the banks "under value property", they are actually valuing the property, not under valuing it. Something is only worth what somone is willing to pay for it, or if they are borrowing money to buy it, what the lender is willing to lend.

About time the banks acted with a little more caution, look at the mess they got into when they weren`t. It`s payback time.

No, not really - all the lenders are interested in is how easily/quickly they could get their money back if they had to foreclose on a loan.

Hence their lower valuations versus the "market" value that properties will sell for.

As far as I am aware UK lenders have never got into a mess over normal domestic mortgage lending.

ILW

harz99 wrote: »

As far as I am aware UK lenders have never got into a mess over normal domestic mortgage lending.

Don't think Northern Rock came out too well.

pararct

Indeed Northern Rock did not fare well and they used to lend more than their valuations were worth.

I have read the thread through and think the comment is fair and balanced. Santander will not increase their offer and have pretty much explained why.

To pay for the new valuation would simply be chucking good money after bad and to try and take the hit of £5,000 and look for another lender you have no absolute guarantee that those lenders would lend what you need anyway (and you could be looking for £5000 more).

Your husband is away on deployment presumably in a hot sandy place so you have other worries rather than trying to settle the purchase of a house.

Can you not allow the sale to proceed and either rent or apply for a pad through your unit families/housing officer? This may be the way to proceed until you can both tackle this together.

There will always be other houses out there, all is not lost if you don't get this one.