First time buyer's repossession/valuation nightmare!! Advice please.

vickysusan

Ok, so we have been very lucky in that me and my husband have found the ideal house for us in the area we want to live in at a good price - however, it's a repossession...

We managed to get a mortgage agreed in principle for 5k more than the offer we made, which was accepted well under the asking price.

Because it is a repossession, the offer had to be advertised in the paper. Then a few days ago, someone offered 4k more than we had offered. We agreed to match the offer, as we have already had our survey and searches done, we are in a better position.

This seems to have done the job - but today - our mortgage company said that they have already sent the surveyors in to check it is worth our original offer and they have agreed it is, so if we want to increase our offer, we have to do it ourselves!! So we need pay an extra 4k, which means we won't be able to afford the repairs on the house straight away.

Can they do this?? The house is obviously worth a lot more and the estate agent says the bank selling the house have had 3 surveyors out who have all valued it at 7.5k over our original offer and 4.5k over our original offer.

Can we not make our mortgage company go back and revalue the house or talk to the surveyors who did it just a few days ago?

geoffky

yes ...you will have to pay the extra in cash...was it worth the extra 4k ?..the bank does not seem to think so. meanwhile the clock is ticking..

vickysusan

Thanks for that geoffky...

Yes it is def worth a lot more. The company selling the house have had 3 surveyors in who valued it at 3.5k over the amount I am now paying (7.5k over my original offer).

However, you might be interested to know, that when your mortgage company send a surveyor round, they don't ask for the value of the property. They say 'can you check it is worth the amount they are asking for?'

As they already said yes it is, they won't go back to the surveyors to check if it is worth more than that.

We have no problem getting the money but it would cost us a kitchen so we'd rather extend the mortgage. We are already putting down 20%!!

Hope someone else might have advice. Thanks.

BhavDave

I am in exactly the same boat, apparently i have offered £5K more then the valuation price. From when my offer was accepted, (via a sealed bid) it has gone up by £12K. I have been told that the extra £5K i have to put in.

It is really annoying that once your offer is accepted, tat the keep the house on the market until the day of completion.

kingstreet

In past cases where the agreed price has increased after the valuation has been done, I've asked the lender to ask the surveyor if he would be happy to increase the valuation.

I don't ever remember being turned down either by the lender, or by the surveyor accepting it's worth a few thousand more. Especially on a repossession.

The surveyor is not valuing the property on the market. He is establishing it is worth what you are paying for it and that it is suitable security for the mortgage.

betmunch

Agree with Kingstreet. Get your Mortgage Broker on the case and ask the Surveyor if he would agree its worth the higher amount, if he would then you should have no problem with the bank issuing a new offer for the higher amount as you state you were already agreed 5k higher

myhouse_2

Banks are intentionally writing down the values, presumably because they are not only concerned about how much the property is worth now, but also how much it will be worth in a few months or a few years time. Makes good economic sense for them.

brit1234

myhouse wrote: »

Banks are intentionally writing down the values,

Or maybe they are valuing them correctly even if the buyer wants to overpay.