contesting an undervalue

tyroneshoelaces

Ok following on from my other thread where the surveyor undervalued the property by £9k ( it is now £7k as the developer has dropped an extra £2k , he wouldnt drop the full amount) I have since found out, and have written proof from the developer that the identical property next door to ours sold for more than we had originally agreed with the developer. They have signed and the sale was completed last friday.
I am not happy with this and feel that the whole process stinks immensely. How can our house be valued at £105k and the one next door actually sell and complete for £115k??!!!!! It is complete madness.

Therefore a complaint has been put forward to the lender to query the valuation, we have also sent them the proof of next door.

does anyone have any experience of contesting these types of things?

poppysarah

You could argue the person selling it (the developer, who is in it to make money) has OVERvalued it.

This is a MONEY SAVING forum after all.

The one night next door might have sold on paper for 115 if the developer (whose interest it is in to sell houses for as much as possible) has given some sort of phoney "deposit" to the buyer and pretended to have sold it for more.

I think that buying a new build is insane given the tricks they are always trying to pull to get as much money as possible.

The person acting in your interest (Well the bank's who are lending you the money) says it's worth less SO why on earth would you want to pay more?

g_attrill

Maybe the people who bought next-door paid more than it is worth?

Catblue

You want to pay more than a surveyor thinks the house is worth?

Why exactly? Do you have a lot of money to chuck away?

Next door might be a "gifted deposit" type scenario which is just a developer's way of making someone pay £115K for a £105K house.

BillTrac

deleted message as read other thread

tyroneshoelaces

It is not a case of us wanting to pay more than it is worth. We do actually think it is worth that based on what other properties have sold for. There are 5 other houses on the street, again all identical, which have sold this year. All of them sold for £112,000 or more. So I am really asking the question why has ours been undervalued when all of those have been valued without a known issue.

Trollfever

If a purchaser is only borrowing say 50% of the purchase price then a valuer can be more relaxed about the valuation that they put on a property.

ILW

tyroneshoelaces wrote: »

It is not a case of us wanting to pay more than it is worth. We do actually think it is worth that based on what other properties have sold for. There are 5 other houses on the street, again all identical, which have sold this year. All of them sold for £112,000 or more. So I am really asking the question why has ours been undervalued when all of those have been valued without a known issue.

Has there not been an overall drop in prices of around 4% this year. The bank do not want to be lumbered with a property that they cannot get their money back on if they reposses. Simple really. Have the developers got others buyers lined up ready to pay the higher price?

CloudCuckooLand

Maybe the lender and surveyor have access to detail such as;


[IMG]http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?g=1&gt=1&a=Swansea&s=01 August 2010&e=01 October 2010&t=1[/IMG]

Which may lead them to think your area (if it is still correct after reading an old post of yours) is on a downward trend...

tyroneshoelaces

CloudCuckooLand wrote: »

Maybe the lender and surveyor have access to detail such as;


[IMG]http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?g=1&gt=1&a=Swansea&s=01 August 2010&e=01 October 2010&t=1[/IMG]

Which may lead them to think your area (if it is still correct after reading an old post of yours) is on a downward trend...

Do you have one of these for Cardiff?
I am in between both so either might not apply to me but it might give a rough guide.
I heard this morning that the Halifax have said that house prices have dropped 1% this year. I don't know where they got that from but there are different figures being thrown around everywhere. Still I think a £9k drop is way to much, it is almost 10%.

tamarto

It doesn't really matter what you think though unless you have the money to buy it outright, no one is entitled to a mortgage of the amount they think they should get regardless of the situation, infact no one is entitled to a mortgage full stop.

I'm confused as to why you think there is a way to make a bank lend you the amount you want!