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Shared ownership lender undervalued
coffecup123
Posts: 4 Newbie
Trying to purchase shared ownership flat but Lenders Valuation come back a lot less than the housing association's can I challenge it?
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Comments
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We've recently had a mortgage offer from Leeds BS for a shared ownership resale property but we are buying through an estate agent and not the housing association.
The valuation from Leeds is with an external company whereas that may not be the case with the housing association so their surveyor may be looking after the housing associations interests.
At the end of the day, its unlikely that Leeds will back down and they will only offer a mortgage based on their valuation.0 -
Do you think I will be able to challenge it as the housing association used RICs certified surveyor too?0
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coffecup123 wrote: »Hi,
Another thing I dont understand is IF the Housing Association are overvaluing the property the Vendor will never be able to sell her share as unless she gets a cash buyer for the 25% no bank will give a mortgage on the 25% it will always be undervalued.
Doesn't this set alarm bells ringing? If you DO manage to buy this (or another) shared ownership property, what's to stop this situation recurring when you try to sell? Do you want to risk being in the position of being unable to resell the flat because the HA's valuation is so high that no-one can get a mortgage?0 -
ARE YOU MAD!!
why do you want to pay more for a house than a expert who values houses for a living says its worth...
walk away...It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
coffecup123 wrote: »Shared ownership lender undervalued
Should of read.coffecup123 wrote: »Shared ownership housing association overvalued
Even if they do drop the price I wouldn't recommend a shared ownership property ever. Can you afford to buy normally?:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Thank you for you replies,
I am not in position to buy 100% I do not have the deposit.0 -
This is fate's way of stopping you from making a terrible and expensive mistake.
Sit tight and save up a decent deposit for a 100% ownership property.0 -
If I do walk away I will have lost over £1000 in fees.0
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