Mortgage down valuation on Taylor Wimper property

housebuyer1000

Hello,

I thought I'd share my Taylor Wimpey house purchase experiences, and see if anyone have similar experiences/advice to give? My wife and I recently made a offer on a property that's part of the Barns development in Andover. This was accepted and we reserved the property, paying the usual £1,000 fee. We have just exchanged contracts on our existing property, but we're still in the fixed term period with our existing mortgage company. We therefore wanted to port our existing mortgage to the new property. We were told my the mortgage company this wouldn't be a problem. Sadly, when it came time to perform the valuation, the report came back £35,000 less than the purchase price. We were told by Taylor Wimpey that the price was correct and it was the mortgage company that was wrong. They refused to drop the asking price by more than £2K, and advised us to find a new mortgage using their IFA. We decided we wanted the property, and would therefore be willing to lose the redemption charge on our existing mortgage. Sadly this hasn't worked out, once again the valuation has come back with exactly the same valuation as our original valuation. I have now spoken to Taylor Wimpey, it does't look as though they're going to change the asking price. Does anyone have any experiences of thoughts on this kind of issues?

BoGoF

My thoughs are you've had a lucky escape from instant negative equity. Nobody should ever pay full asking price for a new build.

Out of interest, how much do Taylor Wimpey want and what was the mortgage valuation?

housebuyer1000

Original asking price of £320,000. Got them down to £308,000 with stamp duty paid and £5,000 worth of extras. Valuation came back at £275,000.

BoGoF

Well if you have 2 seperate valuations each valuing it £275,000 then nobody who needs a mortgage will be buying it.....

Thrugelmir

Not usual for new build properties to be valued at lower than selling price.

As you say the developer is paying the stamp duty £9,240 and extras of £5,000. That lowers the value of the property by around £15k alone.

If TW won't budge on price then your options are limited.

zappahey

housebuyer1000 wrote: »

Original asking price of £320,000. Got them down to £308,000 with stamp duty paid and £5,000 worth of extras. Valuation came back at £275,000.

To put this in context, a colleague in Wiltshire just bought a new build. Asking price £270k(ish), selling price £220k(ish).

It looks like you didn't haggle hard enough.

BoGoF

OP - Any reason why you decided to ask the same question under 3 different headings on different boards, it doesn't help.

dunstonh

New builds typically lose 10-15% the minute you move in. So, a mortgage valuation coming in lower than a builders price is not at all unusual.

We were told by Taylor Wimpey that the price was correct and it was the mortgage company that was wrong.

Which they would say.

Sadly this hasn't worked out, once again the valuation has come back with exactly the same valuation as our original valuation.

Two valuations coming out the same.... are you starting to get it yet?

Does anyone have any experiences of thoughts on this kind of issues?

You walk away and be thankful you haven't paid over the odds.

Original asking price of £320,000. Got them down to £308,000 with stamp duty paid and £5,000 worth of extras. Valuation came back at £275,000.

The common new build model is to put the house on the market at a higher amount and expect to be knocked down. Plus, all those free extras are not free. They factor it into the price. The mortgage valuation disregards all those things as they are no good for the next buyer. A £320k reduction to £308k is also pitiful. Indeed, its almost an insult. You must have sounded way to enthusiastic and they think you will cave in. Time to play poker and tell them that with two mortgage valuations done, that if they do not reduce the price, you will walk away. And if they dont, you walk away.