Valuation problem on my Part-Exchange

rickimcc78

Hi,

Looking for any info/advice anyone might be able to give me.......

We are in the final stages of part-exchanging our house for a new-build. Mortgage has been approved, negotiations have completed with the developer and we are now at valuation stage.

The developer has carried out a valuation on our current home as well as our new home (in order for them to put ours up for sale asap) and although our new build have valued just over our purchase price our current house has valued at £8k under what we are part-exchanging it for.

The bank surveyor (dealing with the new build valuation) has asked for a copy of the valuation of our current home and the developer has now said that this may cause major problem with our mortgage application as they might class the extra £8k that they are giving us for the part-exchange as an incentive, however we negotiated for an amount that we thought our house was worth.

Does anyone know if this will affect our mortgage application? For info the lender is Clydesdale Bank as I understand that each lender has different criteria for incentives.

Thanks,

Ricki

Thrugelmir

Sounds as if the new build price is overvalued to reflect the lower market price for your existing property.

When part exchanging the developer is looking to achieve a quick sale not the best price.

Whilst you may have negotiated the deal. Without the bank (and their valuation) the deal isn't necessarily agreed.