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Help with Mortage Valuation please
Comments
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We are in the process of selling our home and buying another which is a new build property. We already have a mortgage with Santander which we were to transfer over to the new property. All has been going smoothly, until a couple of days ago.
I received a letter from Santander, expecting it to be our new mortgage offer I was shocked when the letter said the valuation on the new property was 20k less than the purchase price! I have spoken to the builder who advised me that they had another 2 valuations done last week, one was on a house exactly the same as ours and both came in at the asking price, so obviously the builder isnt going to reduce the price by 20k. Builder has offered to send both the other valuations to Santander with a view to them reviewing their valuation.
I have spoken to Santander numerous times today and feel like Im hitting my head against a brick wall! They point blank refuse to look at the valuations on the other properties and will not change the outcome of their original valuation. We can appeal against the valuation at a cost of £330 and they will send a surveyor out again.
The other thing is, the property was advertised as leasehold but we are buying the freehold and the property contract etc clearly states the property is freehold. The valuation report states the property is leasehold, which I feel would not give a correct valuation anyway, but Santander refuse to take this into account as well, they say the difference is negligable.
Can anyone offer me any advice at all on this, before I crack up?? We are tied in with them and face a penalty of 5k if we go to another lender, which I am looking into, but as we have a purchaser waiting to move into our property, I want to try and avoid starting all over again with applications etc.
Has anyone ever appealed against a mortgage valuation? Is it likely that Santander will come back with the same valuation? I have no doubt in my mind that the property is definately worth the asking price (we had already negotiated a reduction before applying for the mortgage)
Sorry this is so long!
Why not sell your house anyway and bank the money. In a couple of years you will be able to buy a house for much less than you can now. Now that the dodgy lending has been banned, house prices have to fall to what people can afford and are allowed BY LAW to borrow. This is about 3 times income so you can expect the average price of a house to fall from 170k to around 100k. Only a fool would buy a house in 2010.0 -
des_cartes wrote: »QUOTE]
If you read the OPs later posts you'll see that would cost her £5k straight away..................0 -
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.
Where does the builder find the £8,000 to give you, if not from your overpaying on the new house?
That kickback under the table is £8K straight away I can understand Santander's surveyor finding for its lower value.
And don't assume the builder lowered the price for a 'quick sale' - but, more rationally, perhaps it was an asking price and offer accepted which is more in line with market conditions.0 -
des_cartes wrote: »QUOTE]
If you read the OPs later posts you'll see that would cost her £5k straight away..................
She might lose 5k now but save a lot more than that by selling now but not buying for a couple of years after prices have come down a lot.0 -
des_cartes wrote: »
She might lose 5k now but save a lot more than that by selling now but not buying for a couple of years after prices have come down a lot.
I am sorry but that is an immediate loss and a very big might, and unless you have a crystal ball you really don't know whether prices in the OPs area are going to come down at all - which makes that course of action a real gamble for someone with a husband in the forces and consequently likely to be moved to bases around the world - she needs a house and home to call her own, otherwise she may as well be renting forces accomodation which often leaves a lot to be desired.0 -
des_cartes wrote: »Why not sell your house anyway and bank the money. In a couple of years you will be able to buy a house for much less than you can now. Now that the dodgy lending has been banned, house prices have to fall to what people can afford and are allowed BY LAW to borrow. This is about 3 times income so you can expect the average price of a house to fall from 170k to around 100k. Only a fool would buy a house in 2010.
Which 'law' that?Official MR B fan club,dont go............................0 -
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where is THE LAW in that article. and where does it say three times salary?
if it is THE LAW then i suggest a number of our high street banks are breaking it.0 -
des_cartes wrote: »
Nothing in there about it being made 'law',more wishful thinking on your part.
Even more comical,you've actually recieved a thanks.Official MR B fan club,dont go............................0 -
des_cartes wrote: »Now that the dodgy lending has been banned, house prices have to fall to what people can afford and are allowed BY LAW to borrow. This is about 3 times income so you can expect the average price of a house to fall from 170k to around 100k.
1) "Dodgy lending" stopped with the crash. Prices have risen by £20,000 since the crash ended, with no "dodgy lending".
2) The average income of house buyers is very different from the average income of all people. You are confusing the two.Only a fool would buy a house in 2010.
You would have said the same thing in 2009..... When the average house price was around £20,000 cheaper than today.:cool:“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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