Mortgage Valuation then and now! SHORTFALL

GMS

OP why not be honest from the start of the thread?

Looking back you have declared bankruptcy but still wish to transfer asssets.

Good luck but I suspect the OR and creditors will be one step ahead.

Seemingly you took a huge gamble and lost. Why exactly do you thin it is somebody elses fault?

Stop looking for somebody to blame. You have declared bankruptcy, clearly a thought out process. You are a not a fool and chose bakkruptcy (presumably) after careful consideration. Therefoe you know there is no Mr Fix It.

Live with the terms of the order and move on. Good luck for the future

opinions4u

I would think the lender has a claim against the solicitor who allowed the remortgage to complete.

The OP, buying the plot and developing it, is personally liable for any failure to ensure right of access. I would suggest any case here is around legal advice received at the time of development.

The valuer is not responsible for verifying the right of access and can place a value on the property that reasonably assumes that right of access exists.

devildog

You will not get a completion certificate until it is completed. By this is doesn't mean that absolutely everything has to be finished but certain things. We were issued a completion certificate even though we had not installed a kitchen, we did have a kitchen sink though(which was needed to get the certificate).
Unless things have changed significantly you also do not need an NHBC certicate, if you have had a surveyor regularly inspecting the work and he has been satisfied then he will be able to provide cover similar to that of an NHBC and acceptable to a lender.
Access could be a sticking point since you have only used the road/lane since 2002. Isn't there something in law about if you used a private road/lane unhindered for a certain amount of time(12 years?) then you can claim a right to continue to use it? May also help your case if the previous owners of the plot also used this access unhindered.Had a similar issue come up as road was unadopted (by council) and not owned by anyone. What we though would be a problem just melted away.

There is some type of insurance that you can buy to cover the issue of the usage of the road(do not know what it is called but do know that neighbour took this out when they bought their house and it was something their solicitor either advised or insisted on)

jaysb

Intresting to know how the plot was bought ? sold at auction ?

tmb70

Thank you for the replies, to be honest I am looking for constructive comments. No I am not out for sympathy and no I am not looking to point the finger unless someone is negligent - which obviously I feel.

So through the demise of my company and then consequently declaring myself bankrupt, the main res (in my name only) has been revested.

The lower valuation has come into the picture vis the BR.

So let's say hyperthetically my main res (with wife and kids) is reposessed or I hand the keys back, by virtue of what the valuers are now highlighting - no warranty, no completion cert, drive issue etc the lender will dispose of the property with the net position being MINUS. Lender then chases me and I am bankrupt, the lender stands a loss.

With the lender making a loss it will then pursue the difference from . . . ?

Whether it was self cert or not, a valuer/lender/solictor valued the property without carrying due diligence.

I am trying to establish who should carry out the due diligence. The lender is left holding the loss in this case.

And yes I read members points saying I want revenge etc. and I take on board there points however I am not here for a slapping, I am here for advice.

If it helps I can reply to each reply to date if that helps?

tmb70

GMS wrote: »

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.

Yes I have access over a track running alongside the house which I do not own.

tmb70

Dave_Ham wrote: »

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...

Thanks, TMB is the only lender and yes it is my main residence.

I bought the plot with personal finance and a loan from HSBC then remortaged to TMB when the build was say 85% complete.

tmb70

ACG wrote: »

This will only mess up your credit file,

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.

Credit file is of no concern as now BR.

The loan is secured on the property and land, I suspect that the initial valuer did not ask/investigate the ownership of the track.

The mortgage is on the new property and land.

The plot was bought at auction.

opinions4u

The loan is secured on the property and land, I suspect that the initial valuer did not ask/investigate the ownership of the track.

That would be a job for the solicitor to establish. Not the valuer.

If you do hand the keys in and the lender makes a loss, you are liable for that loss. Not sure how your bankruptcy affects it though (could be an escape route?).

tmb70

opinions4u wrote: »

I would think the lender has a claim against the solicitor who allowed the remortgage to complete.

The OP, buying the plot and developing it, is personally liable for any failure to ensure right of access. I would suggest any case here is around legal advice received at the time of development.

The valuer is not responsible for verifying the right of access and can place a value on the property that reasonably assumes that right of access exists.

I see your pint that the lender has a claim against X, I have made a complaint to the lender and they deny it is anything to do with them.

Valuations have been carried not taking into account the full facts. It is a bit like someone saying here is my house next to a field and then the field is assumed to belong to the house.

There is no right of access, surely the lender has to carry out its own due diligence to ensure the money is covered.

Someone has dropped a clanger here - is it me! Surely not otherwise every Tom, !!!!!! and Harry would have been running around saying look at my house and 'this land'.