New application - Valuation

Tin_3

Hey everyone,

Was wondering if anyone can offer any advice? I'm currently trying to buy a property and have hit a snag with the application.

Background info:

I'm buying a house from my parents. This was valued by 3 different valuers at £120k, £120, £115k. To help me get onto the property ladder, my parents offered me the property at £99,950.

I've put through my mortgage application and the valuation has come back and only valued the property at £90,000, which is way under what was expected, and therefore I'm short on the amount I can loan.

Is there anyway to appeal this decision? There have been no properties sold in the area for a while now. The latest property to have sold was October 2010 and sold for £87,500. However, this property had no front drive and one less large reception room. (there have been properties sold further down the road in the £150k range, but these ones are semi-detached rather than terrace, but same size front and back gardens, are these comparable?)

Also, I knew the person that sold this property, and the reason it was sold at this price was for a quick sale. The owner was quite elderly and had moved in with a new partner, so put the property on the market at way under value for a quick sale so they could enjoy life a bit!

I've kind of been given the run around by my financial advisor, who's told me to make another application with another lender! Having dug for some info, the majority of lenders use the same people for the valuation (which he would know), so how would this help! He also said it was a requirement to take out life insurance etc for the application and now we're stuck with an application in limbo and life insurance we don't want/need! Also, he sold us PPI on the mortgage.... what use is that now there is no mortgage anyway!

Any advice anyone could give would be gratefully appreciated.


*EDIT*

As a guide, the property is 3 Bed, 2 Reception rooms, kitchen, bathroom, separate toilet, large back garden, front garden with drive.

Zoopla's Zedindex for the area is £121,031.

Current houses for sale in the area:

2 bed, 1 reception room, no front garden, small back yard, £99,950

3 bed, 1 reception room/dining room linked. Kitchen, bathroom (no sep toilet). Front/rear garden, garage rather than drive, £190,000

Thrugelmir

What purchase price did you put on the mortgage application?

Tin_3

Thrugelmir wrote: »

What purchase price did you put on the mortgage application?

£99,950. They were then gifting the required deposit aswell!

Oh yeah to clarify the mortgage requested was £85k, but because they have undervalued the house they will only offer £76.5k.

My parents were already willing to take a hit of £34k to sell it to me, and my financial advisors advice was either put in another application with someone else (that would be pointless as mentioned above) or get my parents to accept the lower amount!

On the requested amount, they are already taking a hit of £34k, why would they sell it at basically £43.5k under value!

TrickyDicky

Who was it that valued your home? Estate agents are liable to over value.
For a true reflextion of value, you need a surveyor (as would be provided by the mortgage company).

You have little chance of appealing the decision.

kingstreet

... and zoopla is about as much use as the proverbial chocolate teapot.

Tin_3

TrickyDicky wrote: »

Who was it that valued your home? Estate agents are liable to over value.
For a true reflextion of value, you need a surveyor (as would be provided by the mortgage company).

You have little chance of appealing the decision.

It was estate agents, including one from the same company that done the independent valuation.

The thing thats killing it is the fact that no houses have been sold in the area lately, and the only one that did (oct 2010) was sold on the cheap for a quick sale (even then it had less rooms, no drive, and sold for £89,500!)

_Andy_

kingstreet wrote: »

... and zoopla is about as much use as the proverbial chocolate teapot.

or Anne Frank's drumkit

Thrugelmir

Tin wrote: »

The thing thats killing it is the fact that no houses have been sold in the area lately, and the only one that did (oct 2010) was sold on the cheap for a quick sale (even then it had less rooms, no drive, and sold for £89,500!)

The property sold for a price someone was willing to pay. That's the only true valuation of a property.

Tin_3

Thrugelmir wrote: »

The property sold for a price someone was willing to pay. That's the only true valuation of a property.

Even so, as the house had 1 less reception room and no drive, then surely the house I'm trying to purchase would be worth more than an extra £500!

Also, I think it was less about how much they were willing to pay, and more about how much he was willing to sell for :P

kingstreet

_Andy_ wrote: »

or Anne Frank's drumkit

I nearly used "bobbins" but decided that would simply draw attention to my future advice as others would think me a northern buffoon.

hyposmurf

Where on earth do you get a 3 Bed property,large garden,2 receptions etc for £90,000?You wouldnt even a get 1 bed studio flat for that here!
I wouldnt go by Zoopla prices.Have a look a thread here on Zoopla accuracy:

https://forums.moneysavingexpert.com/discussion/3111476