Coventry undervalued/reduced loan - need new bank!!

sherlock3141

I am buying a flat which was a company sale (so bidding process ensued). I offered £142k originally which went up to £153.5k until the other party dropped out. Coventry valued the flat at £142k and the valuer is now saying 75% LTV on the £142k rather than 80% applied for. A google has found Cov are renowned for this. I can't manage £47k deposit so need 80% LTV on the newly agreed higher offer price.

Who is the best bank who are quick and not likely to undervalue or reduce the loan amount. The clock to completion is ticking.

Any help gratefully received !!! :j

redapple1

Halifax are v quick. Rates aren't great.

kingstreet

As there are few surveyor firms operating in the mortgage market, it's possible changing lender will mean the same surveyor being asked to value the property again. So no guarantee you'll get a different valuation.

Could be Countrywide, Esurv, Allied etc...

I don't understand this comment;-

the valuer is now saying 75% LTV on the £142k rather than 80% applied for

as surveyors don't determine the lender's policy. They value the property and the lender decides if it will lend.

Did you apply for a product with a maximum LTV of 75% or 80%?

go_cat

Why do you want to pay more for a flat than what it has been valued at?

Mallotum_X

Go back and try and negotiate. Was there really someone else bidding against you or was it the agent making things up to max you out.

Explain the valuation make it clear you can not raise any more.

sherlock3141

Hi. Thanks for the replies. It's a grade one listed building. The valuer confirmed there are shops and commercial property so Coventry have now said oh well 75% ltv and not 80%. It was offered at £139k is a company sale so like a repossession it remains on the market to completion. There are other smaller properties on the market for over £220k. The last sale of a one bed flat was £165k. The valuer simply anchored to my first offer of £142k and applied no logic beyond that. With £40k deposit I wanted an 80% mortgage based on whatever the final price was. It's way below market price like a repossession. Any raised offer then has to come from higher deposit. The valuation should be on its actual worth shouldn't it. I'm stuck now on a random low valuation at 75% ltv. Surely this can't be right? The shops are actually galleries museums and high end restaurants. It's a world famous building. Any banks good at valuing these correctly. I've been outbid again today so need to raise the offer price again.

_Andy_

As per above,why do you want to pay more for something than what it's worth? You do realise this is a money SAVING forum?

sherlock3141

It's akin to a repossession Andy. It's worth north of £200k. Others on for £220/230k. So at £153k currently it's a steal. My problem is the initial valuation was simply my first offer. It's in an auction type situation and may get up to £200k. The initial valuation was simply my opening bid. If I bid up to £180k before getting it valued it would have been valued at that.

Bernard_Coleslaw

sherlock3141 wrote: »

It's akin to a repossession Andy. It's worth north of £200k.

No it's not. It really isn't. Were there any people bidding £200k?

A property is only worth what people are willing to pay for it. That's all the valuer (and the lender, for that matter) are interested in.

It appears you're willing to pay over the odds in a falling market. Good luck with that strategy.

kingstreet

The problem you have here, is the surveyor is not carrying out an open market valuation for the lender.

He is tasked with confirming;-

- the property is suitable security for a mortgage
- the purchase price is considered reasonable.

A mortgage valuing surveyor will normally value at the purchase price, or lower. A higher figure won't be mentioned.

sammyjammy

I'm confused, you've had a valuation or mortgage purposes done on a property that you are still in the process of bidding on?