Housing Association Valuation Request!

Oddgy

Yes me again...another problem, what another one i hear you cry??

This is a bl**dy nitemare, and we arnt even close to moving as yet!!

We live in a property which we bought with help from a housing association. They paid 25% of the asking price, and we paid the remainder.

However, 4 years on and now we want to sell and as we have better jobs now etc, we can afford to move and buy one outright.

So you think, we can sell the house for market value, (which you get a good idea market value looking at other houses that have sold on our street) so we set the asking price up on that basis.

We sell the house, and then solicitor writes to HA explaing the situation. We expected them to say OK, send us 25% of the asking price....right??? Wrong!!!

They have sent us a letter asking that we get an independent valuer in to put a value on the property and send them the paperwork. Ok....but that is gonna cost a minimum of £150!!! And then....the money grabbing HA wants £100 + Vat for admin costs.

So that means, that as well as the profit they have made from the house increasing in price, they also want an admin fee.

So now...we have thought obliviously the valuations we got from the estate agent when we was planning to sell do not count, so we are gonna have to bite the bullet and get a surveyor in - - - - - BUT, our buyers had a surveyor in who did a Report on the property for their lenders.
Would there be any chance we could send this to the housing association as it does have the details of what he valued the property at!

So i asked anyone....Would this suffice, and that way we will save having to pay a surveyor to come out to value our OWN property. What a waste of money that we could use on our new house...!! (Thats if we ever move!)

cattie

If this is a shared ownership property then it is quite normal for the housing association to arrange for a valuer of it's choice to value the property & for them to set the fixed selling price.

If it's not an SO property & bought through a keyworkers scheme or similar then best to look at the terms & conditions of buying through the scheme, which you would have had to sign at some stage of the proceedings before completion.

slobbery

We have just been through this nightmare with MIL's house purchase. She was in a shared ownership property and wanted to move out.

We put the house on the market at the value suggested by the estate agent, but then HA insisted the valuation was done by a chartered surveyor which MIL had to pay for.

The REAL problem was that although the estate agent knew the house would sell for more as it was a shared ownership property (and had 2 offers at asking price), the HA would only allow her to sell for the value stated by the surveyor, which was £5000 less that the estate agent had marketed it for!

This meant she had to accept at least £5000 less for the house than the purchasers were willing to pay!

We involved solicitors etc but there was no way round it!

Oddgy

That is silly. The HA lost out then didnt it. Now im panicking about ours now. Thats crazy, i can understand if the asking price was below the valuation, but over the valuation, then everyone including the HA was to make a bit more money.

That really surprises me.

Has anyone else on this forum had the same kinda of experience, or can elapse on this discussion??

Cheers.

lynzpower

One of the points of the HA valuing the property, is as far as I believe it ( being in SO myself) to ensure that the valuation is sufficiently LOW in order to ensure the property remains AFFORDABLE.

In saying that though if this is a equity sharing thing, I cant see what the poiint is. I guess they are just checking you havent sold it off cheap.

Oddgy

whats "SO"? Thanks.

MortgageMamma

sHARED OWNERSHIP

Oddgy

i sent out HA a copy of the purchasers valuation report - dont know whether they will accept this - but if they dont its only cost us a postage stamp. and if they do we would have saved £130!!

izoomzoom

Hiya.

If they don't why not just ask the same company that did they valuation report to do one for you. They may even discount the price because they have done the work already ?

I have mentioned this on another thread but we are purchasing a SO for £150,000. It was obviously independently valued and our mortgage valuation came through at the same value (but I think that is immaterial).

What I was interested to learn, was that the EOT, which is not SO was sold only a few months ago, for exactly the same value. Obviously I haven't been inside but surely a EOT should go for more, even if it is just fractionally ?

Oddgy

I did ring and speak to the surveyor and asked him if he could do a valuation for us.
His reply was that he wouldnt be able to do this, as he was instructed by the bank so is in turn working for them.
And that it would be a conflict of interest to do a report for me as well.

Personally i cant see a conflict of interest, all he has to do is give me a valuation on the property in my name and not the buyers name!!

But there u are....!!

cattie

The only problem with having a buyer's valuation is that it's purpose is just to confirm to the lender that the house is worth the money they are willing to lend on it.

It doesn't really illustrate what the market value is in the same way that a surveyor acting on your behalf would, so the HA may not accept it for this reason. Hope they do for your sake anyway.