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valuation less than asking price on new build
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kandg
Posts: 52 Forumite
Our flat has been up for sale for over a year with little interest. We decided our only option ( we desperately need to move) was to part ex for a new build.
We accepted a part ex on a DWH. As part of the deal they covered my mortgage on my flat but we had no deposit. We used a DWH scheme with Hitachi and Santander whereby we get a 85% mortgage with Santander and take a loan with Hitachi for 15% which is the deposit. This we can afford. We got no other incentives with the house.
All was going well, loan and mortgage approved and we were given a move in date in 2 weeks. However yesterday the valuation came in at 210k – 22k less than the asking price. It seems that it isn’t worth what we were going to pay and the mortgage won’t be released.
Our mortgage broker is trying to go to the valuer with comparables or go for a second valuation. I am assuming as it is the 1st phase of a new build development there aren’t many comparable sale prices.
We are in a bit of a dilemma. We don’t have any more money to put in a higher deposit, and we don’t want o pay over the odds. However, we are so desperate to get rid of my current flat and they know this I don’t think they will drop the price. I am assuming that anyone who would need a mortgage on this property would have the same problem?
We are meant to be going on a new home tour today and do the snagging list etc and we really don’t want to get our hopes up if it’s not going to happen
Advice please!!
We accepted a part ex on a DWH. As part of the deal they covered my mortgage on my flat but we had no deposit. We used a DWH scheme with Hitachi and Santander whereby we get a 85% mortgage with Santander and take a loan with Hitachi for 15% which is the deposit. This we can afford. We got no other incentives with the house.
All was going well, loan and mortgage approved and we were given a move in date in 2 weeks. However yesterday the valuation came in at 210k – 22k less than the asking price. It seems that it isn’t worth what we were going to pay and the mortgage won’t be released.
Our mortgage broker is trying to go to the valuer with comparables or go for a second valuation. I am assuming as it is the 1st phase of a new build development there aren’t many comparable sale prices.
We are in a bit of a dilemma. We don’t have any more money to put in a higher deposit, and we don’t want o pay over the odds. However, we are so desperate to get rid of my current flat and they know this I don’t think they will drop the price. I am assuming that anyone who would need a mortgage on this property would have the same problem?
We are meant to be going on a new home tour today and do the snagging list etc and we really don’t want to get our hopes up if it’s not going to happen
Advice please!!
0
Comments
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Why are you so desperate to buy something for more than it is worth?0
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Do you want to buy this fiver from me for £5.50?0
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I dont want to buy something for more than its worth I was asking if anyone else has been in this situation and how it was resolved ie did the comparables assure the valuers it was worth the asking price or did the building company end up reducing the asking price? I am not going to pay over the odds and start in negative equity. Is this a common prob with new builds. If they wont budge on price and the valuers stick at 210k we will walk away. I just wanted advice/info from people who have been in this situation so we have some prior knowledge/experince before we discuss with DWH.
Thanks0
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