House undervalued 20% - is surveyor wrong?

delmar39 · 18 February 2011 at 3:48PM

Bottom line is I suppose that the mortgage company won't lend against their asking price so that's that.

westlondonbuyer · 18 February 2011 at 7:42PM

It sounds like you've only had a valuation survey. If you're buying somewhere in "poor condition" in need of a "complete refurb", how can you be so sure that it is indeed "structurally sound"?

What about the outbuilding? If you're planning on restoring it, is it going to be worth more afterwards, or will you only break even? You might not be able to simply knock it down if it's on greenbelt land. So the outbuilding may well be a liability and not an asset.

Are there covenants on the land?

If I were you I'd get a full structural survey of both the house and the outbuilding. The upside of that may well be a different valuation. If it's in the same ballpark as your valuation for mortgage purposes, your vendor is going to have to take the hit unless they're content to wait for a cash buyer (and one who doesn't know his !!!! from his elbow).

Annisele · 18 February 2011 at 7:53PM

For other people reading this who don't know their imperial units, 6 acres is apparently a bit more than 24,000 square metres - and getting on for the size of six football pitches. I agree that it's ludicrous to call that a "large garden" whatever the state of the land.