Mortgage Valuation Problems

maverick885

Hi everyone

I'm about to purchase a new flat on a shared ownership scheme and have applied for a mortgage with the Leeds Building Society. The mortgage has been approved but the valuation on the property (carried out by eSurv) came in at £15,000 less than the purchase price.

Other identical properties in the same development have been valued at their actual selling price both for other lenders and for the Leeds Building Society (also other valuers working for eSurv!!!).

Challenged the valuation with the Leeds by providing evidence of other valuations as well as other property sales in the area but to no avail.

Any ideas as to how to proceed either internally within the Leeds or does anyone know of any other Shared Ownership mortgage providers (max 15% deposit)?

Thanks!

_Andy_

Why on earth would you want to challenge it? You've paid someone to give you a professional opinion - they have done so and you now want to pay more than what it's worth? This is especially risky given new build flats perform so badly.

maverick885

Thanks but I think you have misunderstood the point of my post.

I am challenging that the valuation carried out on my property is not correct - the evidence for that being the other valuations carried out on identical properties which are valuing properties at £15,000 higher than that carried out on my property.

For example:
5 identical properties --> 5 valuations performed

4 of the properties valued at £200,000 by 4 individual valuers.
1 (my property) valued at £185,000 by another valuer.

My argument is that the valuation on my property is not correct!

fraser

use it to renogtiaite the purchase price of your flat?

_Andy_

So you actually want to pay £15,000 more than what someone says it's worth?

maverick885

No of course I don't want to pay more than it's worth. _Andy_, you are assuming that the valuation carried out is correct.

What I am saying is that I find it hard to believe that the valuation is correct given the large number of other valuations giving a valuation £15,000 higher.

The issue here is that the building society is not prepared to lend as much, leaving me facing a shortfall in the lending and having to get together a bigger deposit.

The same building society has lent against the full value of another property in the same development but will not lend me the same amount based purely on the valuation.

maverick885

fraser wrote: »

use it to renogtiaite the purchase price of your flat?

I have tried this, but given the Housing Association is able to find borrowers who have got valuations equivalent to the purchase price, they are not willing to reduce the purchase price on my property purely on the basis of this valuation.

The general consensus being that the 'down valuation' is incorrect.

Henry_P_Chester

Prices are falling, when were the valuations done on the other properties?

If it's the same lender doing the valuation then they obviously consider properties on the development to be worth less than they were.

You have 2 choices, get another valuation and hope it comes out higher so you can overpay for the property. Or tell them you are not prepared to pay more than valuation and walk awaybif they refuse. (which I doubt they will do in the current Market)

decsdad

Please please please tell the developer its £185k or nothing, they will buckle.
They will threaten that you would lose your deposit, but you have no choice, the lender will only lend based on the vauation.

They will come round.

Give it a try and let us know.

brit1234

Prices are falling and shared ownership are far harder to sell so are a greater risk for the lender. Try for a reduction, you want as little negative equity as possible in the continuing falls.

I never understand why people want to overpay, pay higher mortgage costs and make it more costly to upgrade.:(