Lender valuing property at less than agreed price

Deg

I've only just had the survey tonight so the offer is before this. Valuation was reduced because of the other sales in the area, so did not take account of any issues in the survey. So we will be going in for another £20k off.

The original offer was very good based on other houses on the market. But the house is unique so similar properties are very rare so comparisons are tough.

thelem

In that case my money's going on the offer being rejected but the house still being unsold in 6 months time - £365k to £305k is just too big a jump, but it doesn't sound like you should offer any more than £305k.

Deg

I think that is very likely, but it's a no brainer to me to not offer any more. The work required will take time which is difficult for us too so don't want to pay any more.

I hope they are sensible and see the reasons behind our offer, rather than being stubborn. Anyone else will most likely encounter the same problems

Deg

After much messing around, they finally agreed to sell for £305k (basically as they were at risk of losing a property they wanted).

Speaking to our building society, they have said that they are happy to lend £325k as their valuation saw no work required. So I think we are planning to purchase at an agreed price of £325k but only pay the sellers £305k (so they are essentially giving up £20k for the work). Does this sound correct and do-able, or have I misunderstood my lender?

bingobob777

Deg wrote: »

After much messing around, they finally agreed to sell for £305k (basically as they were at risk of losing a property they wanted).

Speaking to our building society, they have said that they are happy to lend £325k as their valuation saw no work required. So I think we are planning to purchase at an agreed price of £325k but only pay the sellers £305k (so they are essentially giving up £20k for the work). Does this sound correct and do-able, or have I misunderstood my lender?

it's illegal

85% mortgage on purchase price of 305k, means they'll give you 259,250

sunflower_2

Deg wrote: »

After much messing around, they finally agreed to sell for £305k (basically as they were at risk of losing a property they wanted).

Speaking to our building society, they have said that they are happy to lend £325k as their valuation saw no work required. So I think we are planning to purchase at an agreed price of £325k but only pay the sellers £305k (so they are essentially giving up £20k for the work). Does this sound correct and do-able, or have I misunderstood my lender?

but that wouldnt be a mortgage? sounds strange - i would speak to them again.

unless the Northern Rock together mortgages have re-appeared...

Ivana_Tinkle

You've almost certainly misunderstood. It doesn't work like that (unfortunately and possibly unfairly!). The mortgage co will only lend 85% of the actual purchase price, not the valuation price.