Mortgage/Valuation advice please!

asile21

Hi all,
I'll apologise now because this might be quite long winded!! So Sorry!!!!

Quick summery:
We live in a council rented flat, which with only two bedrooms is too small for 5 of us. We have looked into buying, but with a combined income of only £12k & £20,000 debt, buying is not a very practical idea. (there is a shortage of council houses here and we have been told we will have to wait another 3 years to move, and we are in desperate need of more space)

My parents live about 1/2 a mile up the road and own a business & a flat.
(This bits confusing: They were 50/50 owners of the business and the partner owned the property. About a year ago they bought the partner out of the business and the business bought the bottom half of the property. They sold a 3 bed house, used the money to buy the business, the flat above the business and do a loft conversion on the flat to make a bedsit for my brother to live in.)
So they own the busines and earn about £30k from it and they do not have a mortgage (the business does)

About 3 weeks ago the house next door became available for sale, and being a 3 bed house they decided that they would see a mortgage advisor to see if they could get a BTL mortgage, with the intention of letting us rent the property from them.

All was going well, and mortgage was approved (let to buy, i think) For £220,000. Now the house has been valued by the mortgage company (Lender) and has only been valued at £185.000.

The Vendor of the house was told to market it for £230,00 with a view to accepting £220,000 (this is what he told us and we offered £220,000 and he accepted, we have not gone through an EA and the house has not been put on the market.)

Basically what i would like to know is there anyway we can get the mortgage lender to increase the valuation & does anybody have any ideas for any other ways we can buy this house?

Other properties in the area are selling at/above that value, so whay has it been valued so low??

Any help greatly appreciated,
Thanks
Elisa

danjberry

visit a local estate agent and ask them for comparables of similar properties that have been sold for that price. then provide them to the lender who will supply them to the valuer and they will ask him to reconsider his valuation based on this evidence.

asile21

Thanks.

I have been going through rightmove.co.k checking similar properties
Here are some examples:
http://www.rightmove.co.uk/viewdetails-6466767.rsp?pa_n=4&tr_t=buy
This one is just around the corner.

http://www.rightmove.co.uk/viewdetails-14294588.rsp?pa_n=1&tr_t=buy
This one is in the same road, about 5 houses along.

To give you some idea, the property we are trying to buy is 3 bed, 2 recep, loft room, conservatory, up/downstairs toilet, utility room, detatched, with off road parking for 2 cars, front & rear gardens & all quite modern & nicely decorated.

Does anyone think that we have a hope in hell of raising the valuation?

Cheers

LisaT186

The trouble with looking on rightmove is that they are only asking prices, you need to know what houses like the one you want have actually gone for. You can try looking up the road on https://www.nethouseprices.com to get some background. Ask the estate agent selling it if he has any comparables on his books (he wants the sale after all).

Looks like the last detached house on sea view road to be sold was in March 2005 at £200,000! Is it an unusual property for the area? A terraced one went for £165,000 in October! Take a look through and see.

asile21

Thanks Lisa!

Yes it is an unusual property for the area, the road is not very long, has several rows of shops, lots of flats and only about 10 detatched houses. Some bought recently have been knocked down and redeveloped as flats.(This is partly why my dad wants to buy the house next door to him, its a good investment because he'll have two properties and a big plot of land.)

I had looked on nethouseprices.com (the house we are trying to buy is on there from when the current owner bought it in 2004) I have given a printed copy to my dad to give to the mortgage advisor.
I have spoken to my dad this morning and the mortgage advisor is in the process of arranging for 3 more valuations, in the meantime mum and dad have been and got some details from estate agents for similar properties.

I'm keeping my fingers crossed, because up untill this everything was fine and we were planning to complete on 12th March!!!

Thanks again for the advice.
Elisa