Mortgage Valuation then and now! SHORTFALL

tmb70

Hi all, I have trawled the net for info and to date not really got to far!

I bought a plot in 2002 and began building a new house.

In 2005 I remortgaged my main residence from HSBC to TMB on a self cert mortgage, using a packager called IMB via a Financial Advisor and had a further advance in 2007, off the back of a Colleys valuation instructed by the lender.

At present the house is not fully complete with small items needed to complete ensuite, bathroom etc but nothing to major.

The main issues are there is no NHBC warranty and no Completion Certificate from Building Control.

There is a track 2m away from the property (running the entire length of the house then onto the farm) which accesses a local farm which I do not own. The track is used on a daily basis by me as a drive.

The track has the right for vehicular access to the farm so tractors, lorries etc could use it (but not at present), as I just keep my head down and wait for things to go pear shaped!

So I have recently had the house valued taking into account the issues and the valuation is now 50% of what it was, furthermore, this has now caused massive negative equity.

I have made a formal complaint to the lender and as it stands today they have referred me to Colleys. They have said the valuation is correct as per the instruction from the lender.

I have now asked the lender who carried out due diligence on the property prior to releasing funds.

And I wait . . .

So I keep saying to the lender there is negative equity and both of us have a problem, how can we resolve it? At present this is falling on deaf ears.

I am not paying the mortgage and they are not chasing due to the nature of the complaint.

The shortfall between the current valuation and mortgage is a signifcant amount.

CAN ANYONE ADVISE (OR SHARE SIMILAR EXPERIENCE) WHO I SHOULD LEGALLY SUE AND WHO I CAN USE?

DOES ANYONE KNOW A MR FIXIT WHO CAN LEAD THIS CASE?

Thanks in advance.

GMS

Have I read correctly that you have not got any access to the property?

If so you really need to take it up with the solicitor who allowed the completion to go ahead. If you have no access then there is nothing to stop the owner blocking the way to your property which will render it pretty much useless.

This may also explain the low valuation.

DannyboyMidlands

What about your own due diligence? You chose the site next to a farm track, you haven't got NHBC or Building Regs and you decided to borrow a shedload of money on a self cert basis to speculate on property at the peak of a bubble. Why do you want to sue the lender?

kingstreet

I'm not sure if this is a simple valuation issue, or there's an access issue causing the valuation problem.

From this;-

I bought a plot in 2002 and began building a new house.

In 2005 I remortgaged my main residence from HSBC to TMB on a self cert mortgage

I'm not sure if the problem is with the main residence the OP remortgaged or the self-build, if indeed they are two separate properties.

Either way, it was a bit daft to buy a plot of land without ascertaining the rights of access. That would have been the original conveyancing solicitor's department.

Dave_Ham

Sorry I also am a bit confused, and as naive as this sounds there is no point in kicking the OP when down as he has come here seeking help.

So, is this property now mortgaged by TMB your only mortgage and main residence?

Or as I think may be the case, you raised money on your residential mortgage on a self cert basis to buy the land and commence the self build?

Once the good people on here get this information, you will get some general advice. My money would be on hot footing it down to a decent, local solicitor soon after and buy the farmer some nice cakes from the shop?

Let us know and will do best to constructively answer...

ACG

So I keep saying to the lender there is negative equity and both of us have a problem, how can we resolve it? At present this is falling on deaf ears.

I am not paying the mortgage and they are not chasing due to the nature of the complaint.

So because it hasnt gone the way you wanted your having a paddy and not paying? This will only mess up your credit file, whether they are chasing you or not, unless you have something in writing to say otherwise.

Its not really their problem. They have the loan secured against your main residence you have said, not the land, so if you stop paying its your main residence that would end up being reposessed. IF that then doesnt get enough, they may choose to find other ways of securing the shortfall - whether that be the land, vehicles or a payment plan etc etc.

If that doesnt raise enough, then yes they have a problem but its a much smaller problem to them than you seem to think it is?

The mortgage was raised on your existing property not the new one. So you have potentially 2 complaints...was the initial valuation of the land correct? If not you then have a complaint against them. Is the new valuation correct, if its not its easily fixed by getting another...if it is correct then you may well have problems.

Following on from GMS comments - does the land have no access (presuming the owner of the track tells you to "get of his land")? If not did you know about this? was it brought to your attention, is it in any paperwork?

You could have a complaint there if not.

Dave_Ham

Sort of agree, but until clear I am assuming that the land was bought cash (in essence) as raised from ressie property.

If this was the case, who would the OP complain to. Ok, I cannot imagine planning could have been obtained without any suitable access, at which point the lender has remortgaged him with additional funds to do what he wants with the additional funds (back in the days they did not care) so cannot imagine why they are tolerating lack of payment.

I think I may be missing the point, or got it round my head and will not comment further on assumption or probably.

Please clear up the questions raised throughout the posts, and I am sure you will get some sound, general advice.

Thrugelmir

tmb70 wrote: »

The main issues are there is no NHBC warranty and no Completion Certificate from Building Control.

Why no completion certificate?

Without it house is unmortagable.

bigadaj

Bottom line is that it is the OP's problem from what has been said. I cannot see the lenders being interested or liable, it could be that the plot was gained by he farmer and then sold on, and access should have been confirmed then. It is unclear whether the problem is just lack of access or the issue with adjacent access. If the issue is the farm traffic then approaching the farmer with an offer for access rights with the purchase of some land could work, as the land would add value to the house as well, but the farmer could ask a huge amount or not acquiesce. Caveat emptor.

GMS

The problem with this country, or at least one of them is that 'Caveat Emptor' has been replaced with 'mis-sold', aided and abetted by non-regulated ambulance chasers.

Trollfever

OP has/had other properties that are in negative equity.

https://forums.moneysavingexpert.com/discussion/3498239=