Under valuation = Advice needed!!!

shez28

I am currently in the process of buying a new build 2 bed apartment with Taylor Wimpey. I have an offer in principle for Halifax and about to proceed with formal application. However IFA got back to me and said that Halifaz have under valued property - she didn't say by how much ( sorry forgot to ask ).

Anyway she said that Taylor Wimpey head office and Halifax head office are now trying to comprimise on valuation. Taylor W are saying that they have lenders valuations agreed ( Nationwide ) and Halifax have asked for the proof. My IFA seems pretty confident they will reach an agreement as she said it is in the interests of both parties. She also mentioned something about new builds only being allowed a maxium 30% per cen of mortgages being with one lender???? she basically said this means Taylor W will want to get Halifax on board.

As a first time buyer I would really appreciate any advice / opinions on this. Has anyone had similar situation, what was the result, what is the likelihood of both parties agreeing value.

Any help greatly recieved

Ionkontrol

The Halifax have valued the flat at what it is really worth. Wimpey have valued it at what they want for it, usually quite a bit difference as new builds are overpriced.

shez28

Yeah I appreciate that. I mean at the end of the day I don't want to buy it if its majorly over valued anyway. I will just walk away.

The thing is though is that all the apartments have been sold, and the majority of people have gone with Nationwide ( which incidentally I had an AIP with ). Now they obviously have agreed with WImpey's valuation.

So basically what I am asking is what is the likelhood that Halifax will? any idea ?

geoffky

THANK THEM for saving you paying too much..

GAH

At the end of the day the surveyor has valued it on behalf of the halifax to protect themselves in the event the property is repossessed so they can claw their money back.

ITs difficult to say whether Halifax would change their mind and up the value, as every case is different, but its very unlikely.

Iguess worse possible scenario, if you do still want to buy at the agreed price is that you go with nationwide.

sirmosh

Since a number of people used Nationwide I expect they must have valued it higher, but it's possible those people had bigger deposits so the lender wasn't so worried about losing their money, or perhaps when they bought the market was a little bit different or maybe the other people negotiated more money off than you did.

JQ.

Tell your IFA to stop trying to get you to pay more and tell TW that you will pay what the valuation states and no more.

brit1234

The same story about builders such as Taylor Wimpy, Barratts overvaluing new builds comes up time and time again. Halifax have done you a favour, either haggle them down to the Halifax price or walk away. Halifax are protecting you from negative equity and at the same time protecting themselves.

Builders quite often get some spurious mortgage to overvalue their property and use it as a bench mark for the other property valuations by registering it on the land registry. Don't fall for it, don't get ripped off.

terrierlady

i think halifax value new builds as second hand so price wont be the same

kingstreet

terrierlady wrote: »

i think halifax value new builds as second hand so price wont be the same

Nationwide used to do that, but changed the policy at the beginning of the year. Halifax has always been consistent on newbuild, basing lending purely on the surveyor's valuation at the time.

At the moment, Halifax lends a maximum of 80% on newbuild flats and houses, while Nationwide's maxima are 75% and 85% respectively.

poppy10_2

shez28 wrote: »

Taylor W are saying that they have lenders valuations agreed ( Nationwide ) and Halifax have asked for the proof. My IFA seems pretty confident they will reach an agreement as she said it is in the interests of both parties.

Which parties? Your IFA should be representing your best interests, not those of the builder or the lender.
The house has not been 'undervalued' - the developer's overvalued asking price has been exposed. You shouldn't 'compromising' or be spending a penny more than the valuation - get TW to drop the asking price.