Nationwide down valuation

kingo30

I contacted my broker today to chase up my mortgage application on a new build property and he has told me it has been down valued by the nationwide.

The property was for sale at 299950 and I was purchasing the property on a 20/80 split shared equity with no payments or interest but to be paid back in 10yrs, we factored all this in with over payments to cover the extra 20% and this was very manageable for us. The nationwide have valued it at £280000 my broker did not tell me this yesterday when I spoke to him but went straight to the developer and informed them speaking with the sales manager and they said they will have to speak with someone higher and get back to him it would have been nice for my broker to inform me of this to and not keep me in the dark.

Has anyone been in the position before we do not want to loose the property anyone any advice what is likely to happen, we don't obviously want to overpay but we honestly believe we were not paying over the odds. this is one of the cheaper new build property's in the town, barratts 500 meters away are asking 280000 for 3 bedroom house and sold prices seem to be around the 270000 mark for that estate. Second hand 4 bedroom properties nearby that are smaller have also sold for anything from 250000 to well over 500000 so we have been very surprised by this, the house sits about the average price for 4 bed property in this town.:(

_Andy_

Why would you even consider paying more for something than what it's worth? This is the whole point of a valuation.

mrginge

Sounds to me like you really DO want to overpay.
Anyway the solution is simple. You just pay the extra 20k rather than borrowing it from nationwide.

tony2toes

kingo30 wrote: »

I contacted my broker today to chase up my mortgage application on a new build property and he has told me it has been down valued by the nationwide.

The property was for sale at 299950 and I was purchasing the property on a 20/80 split shared equity with no payments or interest but to be paid back in 10yrs, we factored all this in with over payments to cover the extra 20% and this was very manageable for us. The nationwide have valued it at £280000 my broker did not tell me this yesterday when I spoke to him but went straight to the developer and informed them speaking with the sales manager and they said they will have to speak with someone higher and get back to him it would have been nice for my broker to inform me of this to and not keep me in the dark.

Has anyone been in the position before we do not want to loose the property anyone any advice what is likely to happen, we don't obviously want to overpay but we honestly believe we were not paying over the odds. this is one of the cheaper new build property's in the town, barratts 500 meters away are asking 280000 for 3 bedroom house and sold prices seem to be around the 270000 mark for that estate. Second hand 4 bedroom properties nearby that are smaller have also sold for anything from 250000 to well over 500000 so we have been very surprised by this, the house sits about the average price for 4 bed property in this town.:(

This is reminiscent of a similar experience I had, and it worked in my favour, hopefully with your transaction too. Nationwide had also down valued my new build. They have a tendency of down valuing new builds as second hand. Long story short the developer knocked the sale price down close to Nationwide's valuation. Phone and inform your broker (asap) that you would be strongly inclined to pay at Nationwide's valuation and have him convey this to the developer's sales manager/someone higher. All the best and I hope you will enjoy a fat discount off your purchase price. Let us know how you get on.

kingo30

Thanks he has already done that. My point is valuations of new build houses is subject to whoever is doing the valuations and is not an exact science, the house is about average for a four bed in my town and I did not feel like I was paying over the odds like on the barret estate or linden estate nearby. My question was not about me wanting to over pay but for people to offer advice who may had similar situation to Tony above and if they can give advice. I hope if does work out that way

kingo30

My broker just called to let me know that the builder has challenged the valuation. The have just exchanged on two3 bedroom houses for 279950, fifty pounds less than what a 4 bedroom house with 300 square feet more space can be valued 50 pounds more and what he compared it to. One house was sold with lloyds tsb valuation and the other with halifax. Anyone any experience of this being overturned ?

GMS

Valuers very rarely overturn their original valuation. The research into sold comparables would have been done for them to arrive at the figure in the first instance.

Have a think over the weekend if you really want to pay 20k more than the valuation.

kingo30

If he won't over turn it then we just have to hope the builder will take the hit. I am hoping that with it being near the end of their financial year and us all ready to exchange subject to this problem being sorted and compete 10 days later they will do that rather than lose a sale so close to the end of the year for them. They will also then have to find another buyer

_Andy_

Why would you want them to turn it over and cost yourself £20k?

kingo30

Well its the only house we want and I don't want to pay over the odds and who says it is. He may be wrong to us who live in the town its about average price for a 4 bed property in fact most 4 bed house in slightly older estates approx 10yrs old are up for over 300000 and are not built to this standard. So we based the value on similar homes hence why I was surprised at the down valuation. Of course I would love to get it for 280000 but this is a long term home not an investment and I can't afford another 20 grand if they won't drop .please keep in mind we are equity share buying and the builder might be reluctant to sell using that scheme if he has to drop 20 grand and
would make us have to stay put as all other 4 beds that are new in the town a much more expensive

_Andy_

kingo30 wrote: »

and who says it is

Only a professional valuer who you paid to tell you how much it's worth.

I'll butt out now as it's clear you're wanting to rip yourself off by £20k plus ignore the opinion of a professional.