contesting an undervalue

CloudCuckooLand

Cardiff;

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

tyroneshoelaces

CloudCuckooLand wrote: »

Cardiff;

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

That is a lot different to the Swansea Example.

As to people questioning my right to complain, I have already spent £1250 on this,through all the various fees. we have been told to raise an extra 5% deposit when they originally said they would accept 10%. So that means we are now putting down nearly £18,000 deposit. We have been messed about throughout the whole process, and I guess this is the final straw. Add to the fact that I have been told the surveyor was completely unprofessional and rude then I think I have a right to complain. In my opinion, I think in the grand scheme of things £7k is neither her nor there when they bank is lending me £90k.

Richard_Webster

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.

The 5 other properties - are they all new sold by the same builder? If so they are not true comparables.

You need to be looking (as the lender;'s surveyor has done) at similar slightly older properties and what they are being sold for. In 5-10 years time nobody is going to pay more for this house just because it is 5-10 years newer than a similar one nearby.

tyroneshoelaces

Richard_Webster wrote: »

The 5 other properties - are they all new sold by the same builder? If so they are not true comparables.

You need to be looking (as the lender;'s surveyor has done) at similar slightly older properties and what they are being sold for. In 5-10 years time nobody is going to pay more for this house just because it is 5-10 years newer than a similar one nearby.

This is the issue, there are a lot of properties in the area, that are maybe 4-5 years old that are selling for £117 - £120k. Add these to the properties sold on the street and I think we have a genuine case to complain. It all seems a little weird if you ask me.

CloudCuckooLand

If it was all your money you would be entitled to an opinion as to whether £7k of it was neither here nor there, or not.

As it is someone else's £90k, that you want to be given, it is their opinion that counts entirely, as to whether it is neither here nor there, or not.

ILW

tyroneshoelaces wrote: »

That is a lot different to the Swansea Example.

As to people questioning my right to complain, I have already spent £1250 on this,through all the various fees. we have been told to raise an extra 5% deposit when they originally said they would accept 10%. So that means we are now putting down nearly £18,000 deposit. We have been messed about throughout the whole process, and I guess this is the final straw. Add to the fact that I have been told the surveyor was completely unprofessional and rude then I think I have a right to complain. In my opinion, I think in the grand scheme of things £7k is neither her nor there when they bank is lending me £90k.

If the £7k is so insignificant, the builder would have knocked it off his price.

BadgerFace_2

Many banks will request a second hand value of the property, which is always going to be lower than the new value. If the surveyor cannot find a similar comparable, they are told to knock between 5 and 10% off.

As an aside, not only is this the banks being cautious, it will normally put people into a higher LTV with the corresponding higher rate. The bank is not looking out for you, they are looking to protect their investment and get as much as they can out of you in doing so. It's a business.

Orpheo

tyroneshoelaces wrote: »

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

No. I wouldn't contest something that would save me £9k.

brit1234

tyroneshoelaces wrote: »

I heard this morning that the Halifax have said that house prices have dropped 1% this year.

Your wrong the true figures show that they have fallen about 2.5% year on year however they have fallen about 5% in the last few months according to Halifax with about a 3.6% fall in September.

This is a money saving forum, what you are saying is the surveyor is trying to stop you overpaying for a home and you are angry about this. To make it worse if you buy at the overinflated value this figure will be recorded on the land registry and used by the developer to justify ripping off more people.

I recommend this site instead:
http://forums.moneywaistingexpert.com/howtooverpayonhome


Haggle the developer down as it will protect you from negative equity as prices continue to fall.

Hammyman

tyroneshoelaces wrote: »

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?

Welcome to a free market society. There is always going to be a variance in a valuation done by two different people due to the human factor. It also may be that they have added value.

We bought our house the same time as the people opposite. Theirs was valued £20k/20% less than ours. The difference is because of the decor, the fact ours has recently new CH, roof and a large garage on the back. Other than that then from the outside, they look identical.