Complications with Selling our Home - Help Please

Louise2911

Hi,

We are in the process of selling our house. We have had an offer and accepted it at 87K - 3K under the asking price. When the buyer had shown interest our estate agents said he was fully funded for the application of buying the house.

The lender has come round from Halifax and completed a survey on our house and valued it at 82K which is 8K under our 2 previous valuations. Anyway this has now gone to an appeal to the surveyors to reconsider. As we only had our house valued by 2 estate agents the month before and it cant have lost that much value in a month

In light of all this we have found out that the buyer has an vendour gift mortgage with his Halifax as he only has a half of the deposit. Surely shoudnt have the estate agents made us clear on this at the start when he made an offer?

We accepted 87K but its says on the Agents document that the house got sold for 92K which we didnt know anything about till yesterday.

Does this mean that the lender and his valuer were effectively using the sale price of 92K to make their lending decisions?

It all seems a bit fishy with the valuation thats all.

Sorry if im a bit vague but i would like some advice if anyone has been in the same situation?

Thanks

CloudCuckooLand

First off. The figure an EA gives you is not a "valuation". It is at best a guess of what it might sell for.

A lender gets a valuation. The computer sort tend to be cautious. The human sort are more accurate than EAs, but can be flawed.

After that it gets fishy. But makes little difference, now the Lender has got the right figure.

£82k minus deposit equals the buyers mortgage.

If you want to accept £82k, or a revised figure if evidence of other sales gets them to increase it a bit.

hcb42

Not sure on the gifted deposit side, although I wouldn't have thought it should matter to you what mortgage they got...as long as the paper work stacks up of course.

It isn't unusual for a surveyor to value less than an EA valuation either. The problem is of course now the purchaser will not have enough money, as the bank will only consider the £82k

Crashandburn

Lender and valuer were only going on what they were told.

Agent has inflated your purchase price to £92k to 'create' a deposit - similar to a builder paid deposit. This means it generates another 5% deposit than could be used by the purchaser.

However, you should have been aware of this from the outset and been in agreement to it. Sounds like they kept you in the dark.

Very bad practice.

Hope the appeal goes well

Louise2911

Thanks for the advice.

Just stressed out so much about it all. :mad:

maninthestreet

A vendor-gifted deposit that the vendor knows nothing about???

Thrugelmir

Louise2911 wrote: »

Does this mean that the lender and his valuer were effectively using the sale price of 92K to make their lending decisions?

No, the valuer representing the buyers lender will value the property at what he considers fair value on the day. Taking into the account any instructions by the lender.

Louise2911

maninthestreet wrote: »

A vendor-gifted deposit that the vendor knows nothing about???

Yes only found out yesterday when i spoke to my solicitor

betmunch

so the EA marketed it at 90K then put the paperwork in saying it was a vednor gifted deposit and the actual sale price was higher than the marketed price? What a clever fellow!

I hope you havent paid out anything for your mortgage or solicitors for your sale or onwards purchase because (imo) this mortgage was never going to be granted and both you and the buyer have been scammed by a dodgy EA!

Would you care to name and shame? I know who I think it is!

Louise2911

betmunch wrote: »

so the EA marketed it at 90K then put the paperwork in saying it was a vednor gifted deposit and the actual sale price was higher than the marketed price? What a clever fellow!

I hope you havent paid out anything for your mortgage or solicitors for your sale or onwards purchase because (imo) this mortgage was never going to be granted and both you and the buyer have been scammed by a dodgy EA!

Would you care to name and shame? I know who I think it is!

Pmed you :-)

Also yes thats right we accepted 87K and then on the official document it says 92K. Luckily we havent paid out anything yet or it could be all wasted if this appeal doesnt go through!

FraudBuster

Some information on mortgage fraud:

http://www.cml.org.uk/cml/policy/issues/3658