Nationwide down valuation

holly_hobby

bobsyourteapots wrote: »

Yes actually I would know. My OH is a valuer and I am a mortgage underwriter.
If someone disagrees with a valuation they need to provide 2 comparable properties. You can't just tell a valuer that they are wrong, you need to provide them reasons WHY you believe they are wrong.
Then the independent valuer will either say "oh yes actually it is worth X amount" or "no I don't believe this is equal to the property I saw so no it is still worth X amount".

To be fair Simon is an underwriter (although his signature doesn' show it now).

Re having a valuation challenged, yes you need to provide at least 2/3 (more if possible) of recent (generally within the prev 6 mths) of completed sales (so you're looking a Zoopla, 192, LR records etc for evidence) of comparible properties in the same area, to support your claim.

The valuer, even in possession of this info, still does not have to amend their valuation if they believe, and from recent comparibles from local EAs (which they will obtain to compare with their own evaluation), that the value has not been unrealisticly evaluated .... and remember they are basing their figs for the mge lender (whom they act for) and what they belive the property will reasonably achieve at forced/quick'ish sale on possession.

Hope this helps

Holly

kingo30

Well the surveyor will not budge on the valuation even after being supplied with 4 houses that have now been completed on the site, 3 of which are 3 bedrooms smaller and valued £50 less than the bigger 4 bedroom house we reserved. the other property was a 4 bedroom slightly smaller rooms sizes but not much just different lay out and sold for the same price we reserved at., just does not add up !!! anyway its now in the hands of the builder if he wants to sell the for the 20 thousand less at £280,000 using the 80/20 shared equity scheme or maybe 85/15 share just don't know how its going to work out.

It was an ideal house for us with 3 growing boys and was a solution to a problem with having less equity in our property using the equity share route. if they refuse to sell then we are stuck for a good few years and hundreds possibly a thousand or so down in fees. we are already at exchange level and could complete soon as all searches are done and my buyers and there buyers are ready, so not only will that valuation cost me money if the sale collapses the poor buyers of my property will also loose money as I will have to pull my property from the market. a shambles all round, valuations are so subjective its unbelievable how surveyors can be so far apart, well at least one of them anyway...

kingstreet

Cue the builder suggesting you try another lender and an offer to pay for the valuation.

holly_hobby

TBH no searches/legals should ever be commenced until the lender has issued an official mge offer - for this very reason.

If the bldr drops the pch price to the valuation, it is off this figure that you obv base you mge figs and required deposit on, if he was also giving you a 5% builders deposit, this could now be lost due to the reduction in sale price, and you may have to tinker with your own deposit, if their and yours still only resulted in the in minimum reqd i.e 10%.

You could take the view of going to another lender, and getting another survey, odds on the same surveyor will be instructed, or you will just get the same result - with the additional costs to boot.

Best bet is to try and get the builder down .... if he refuses then, you'll either have to find the difference yourself (madness !) or walk away ... I bet if the Bldr thinks you'll walk they become much more accomodating.

Keep us posted.

Hope this helps

Holly

PS - further suvey point crossed with Kings ... posting at the same time !

kingo30

already mentioned another lender the Halifax but even though my shift payment is guaranteed and I have been getting for 20 years they will only take 60 % so they are a no go and like hobby said it could happen again and I will be out of pocket, its been left with the sales manager to decide

holly_hobby

Colleys (owned by Halifax) notoriously (and from my own professional experience) down value at the best of times ..... I wouldn't hold much hope of they coming up with anything different than the first ! But - stanger things have happened I suppose !!

Batter the builder down is my preferred suggestion here ...

Hope this helps

Holly x

kingo30

that's what I am praying to happen, hopefully as its the end of the year and they stated that they want the completion date to be no later than the 21st December, I presume that this is the builders end of financial year that this may play out better for me, surely they will want to get this sold and onto this years figures...

If they loose me then they will not have it sold by Xmas and may take months and months to sell next year but who knows. The house is a semi and the other side has not yet sold and been up since June 2012

holly_hobby

Thats all good news for some positive mediation with them !

I would also bang on about the fact that you and the rest of the chain are all ready to go to exchange and completion - so there won't be any further delays waiting for local searches etc.

Keep us posted and GOOD LUCK xx

Hope this helps

Holly x

ScottMc83

I am in exactly the same position with Nationwide at the minute. The house builder has refused to budge on the price so we are appealing the valuation. I bought a new build 2 years ago and never had so much hassle. I think it is just nationwide being awkward.

Really p***ed off at the moment.

brit1234

ScottMc83 wrote: »

I am in exactly the same position with Nationwide at the minute. The house builder has refused to budge on the price so we are appealing the valuation. I bought a new build 2 years ago and never had so much hassle. I think it is just nationwide being awkward.

Really p***ed off at the moment.

That's because banks have to lend more sensibly now and now how much developer artificially inflate prices. Get a 2nd hand home, bigger, cheaper and more solidly made.

The major builders are corrupt, remember their mass gift deposit/land registry fraud before the credit crunch.