Survey results - House worth less than offered!

Vixxy_2

Hi,

I am quite new to these board and am looking for some guidance.

My boyfriend and I are purchasing a Victorian terrace house and our offer of £195,000 has been accepted. However the survey has come back and valued the property at £193,000.

We knew it needed a lot of modernisation and work - however possibly underestimated how much! A couple of the jobs are urgent and therefore would need to be done as soon as we move in. Originally we only budgeted about £3,000 when we first move in to do the work, therefore do not have enough to do all the jobs needed unless we borrow more- which we are quite reluctant to do. Even if we offer £193,000 we will still be short and need to borrow more.

Is it acceptable to revise our offer, and if so can we offer less than the surveyor has valued the property at?

Thanks for your help

Vixxy

real1314

you *can* revise your offer, and you *can* offer less than the survey valuation, but then again the vendor can refuse your revised offer.

if it's been valued at £193k, the vendor is unlikely to go below that price. you need to see what the necessary work will cost and negotiate.

fishpond

If you want it buy it, 2 grand is not alot.
If you offer less than 195k you may lose it.
You're call really.

lynzpower

what work needs doing "urgently?"

BettiePage

Is it just me or is this type of thing beginning to happen more and more frequently?

roswell

Assuming that you have a 5% deposit the surrney has done its job and told the bank its of to lend you the mortgage, If you dont have a deposit £195 000 is a very big risk and you will be expected to pay the £2000 to make Good the offer. I dont think any seller will knock accept a 0.9% undervalue as a new offer, if the house needed work VERY urgently it can be safe to assume that the value would have been a lot lower and a retainer would have been put on the amount the bank would lend.

silvercar

valuations tend to be cautious when your loan to value ratio is high.

Vixxy_2

Thanks for all of your replies.

The work that needs to be done ungently is seal the attic from other houses on the row as it is a fire risk and one of the drains is leaking. Plus Damp proofing most of the house. Less urgent work is fitting a new central heating and plumbing system. So nothing particularily unsafe it has just been reccomended we complete it as soon as possible.

Our loan to value ratio not bad, we are borrowing £117,000 -(or at least are hoping to!) and the new value is £193,000.

geezer46

Vixxy wrote:

Thanks for all of your replies.

The work that needs to be done ungently is seal the attic from other houses on the row as it is a fire risk and one of the drains is leaking. Plus Damp proofing most of the house. Less urgent work is fitting a new central heating and plumbing system. So nothing particularily unsafe it has just been reccomended we complete it as soon as possible.

Our loan to value ratio not bad, we are borrowing £117,000 -(or at least are hoping to!) and the new value is £193,000.

The firewall in the attic is significant. If a neighboring property catches fire and spreads through the attic due to a failure in this firewall, that you knew about it could invalidate buildings/contents insurance.

I would insist this was repaired prior to completion by way of a clause in the contract.

Damp proofing on the scale you are implying can be expensive. I would try and get some quotes for guidance.