Buying over survey value

mooncalf

Is it possible to buy a house on mortgage over the survery value if I am willing to put the difference in. would the mortgage company accept that?

TIA
mooncalf

silvercar

yes, though I would ask why do you want to pay more than the house is worth?

the mortgage company will base its lending on the lower of the price you pay. so if the max they will lend is 90% of the value this will be lower than 90% of the price you are paying.

danm

surely a house's worth is what someone will pay, and not what a guy who spends 5 minutes wandering round thinks its worth.

I really think the survey process is flawed. As far as structural information and obviuos faults, i see the point. In terms of what the property is worth, a survey of house prices or offers received on the property is a much better guide in my opinion

michjoe

We had an offer on our house for £5000 under asking price which we accepted, when the survey was carried out it was valued £20,000 under the asking price which is alot considering we are at the lower end of the market. It is so annoying as we ended up losing the sale it is also annoying because we put it on the market at a lower price than other houses in our area which are smaller so we could get a quick sale.

Alan_M_2

A Surveyor will come and look your house, then phone two or three local agents and ask what the house is worth in their view, and details of any recent sales in the same road/proximity. Their value is then based on this information.

The lender is using the survey as an insurance policy, they are interested in what the house is worth if it should be repossesed and need to be sold, they are also in a position to sue the surveyor if He's wildly out (not unusual - which is why surveyor PI insurance is so much money).


So what's happened?

1/ Prices are increasing wildly and you are trying to set a precident and nothing has sold anywhere near that figure to date.

2/ Prices are dropping as there haven't been any sales in that ballpark recently and houses are stuck on the agents books.

3/ The Mortgage lender has instructed the surveyors they use to err on the side of caution as they're tightening the risk criteria.

4/ The surveyer made a mistake.

5/ The agents provided the surveyor with duff information.

The problem is, what is a house worth? How do you actually quantify this figure at anything more than the cost of construction and the land?

So there will always be discrepancies.