Less valuation price due to converted room

nmufti

Hi,

I am buying a house and the valuation price is 5000 less than purchase price and all that is due to the reason that a converted room from garage is not as per building regulations standandards. The surveyr ask for builiding regulation approval to provide and they will review the price. The bank is only lending money as per the valuation.

I asked seller to provide the approval but he don't have the approval and he is not willing to obtain. He is also not agree with the valuation price and not prepared to negotiate the price.

The estate agent is saying that survery has done error and house price should not be less. He adviced me to pay the cash or get a loan to topup the deposit.

I am first time buyer and really stuck what to do. I cannot afford to pay the cash but I may go to get another loan if I am sure it it right. I don't belive estate agent and I think surveryer is right and he has done the right valuation. So paying the house price more than its value don't looks right in the current market scenerio.

Can someone please guide me is this normal in house buying process to pay extra than valuation price? If yes, then what is the use of surveyer?

Thanks

bob2

nmufti wrote: »

He is also not agree with the valuation price and not prepared to negotiate the price.

The estate agent is saying that survery has done error and house price should not be less. He adviced me to pay the cash or get a loan to topup the deposit.

The estate agent would say that - the estate agent works for the seller and his job is to get you to pay as much as possible.

Simply tell the seller that if he is not prepared to negotiate then no sale!

Can I ask - how did you arrive at the purchase price in the first place? Did you make an offer some way below the advertised asking price?

Thrugelmir

nmufti wrote: »

I asked seller to provide the approval but he don't have the approval and he is not willing to obtain. He is also not agree with the valuation price and not prepared to negotiate the price.

He will not get approval. As the conversion will not comply with building regulations. In particular insulation.

Walk away.

Don't feel pressurised. Another suitable property will come along.

nmufti

b!!! wrote: »

Can I ask - how did you arrive at the purchase price in the first place? Did you make an offer some way below the advertised asking price?

Thanks for your reply

Yes, I made an offer below the asking price and it was accepted. I checked on zoopla and rightmove and put offer equal to what was suggested by it. Surveyer also valued the house equal to that but reduced to price due to converted room.

kingstreet

If the issues cannot be rectified and the valuation set at the agreed price, tell the agent you want to buy at the surveyor's valuation figure or you'll walk away.

Missing building regs will impact on you when you wish to sell. If the vendor wanted to get the top price, he should have had the work done "to code."

Cara79

Totally agree with previous posters.

Seller either negotiates or u walk away.

Please DO NOT get a loan as this will impact & have a negative effect on your mortgage offer & could reduce your mortgage offer.
X

princeofpounds

Why angry at the survey? It saved the mortgage company bother and you too (given you both have an interest in the house).

Building non-compliant to code is unlawful. Now you aren't going to go to prison for doing it, but it would have made it a nightmare to sell the house on (as the vendor is now figuring out).

Depending on what is wrong, making the necessary adjustments could cost 5k or even more.

You can pay whatever you like for a property but the bank will only lend up to what it thinks it is worth.

This is all very normal.

The estate agent is utterly biased, ignore them unless the property really is worth more to you.

And ignore zoopla etc unless this is one of many identikit houses in the same area. There is no serious accuracy.

nmufti

Thank you very much friends.

Your valuable suggestions helped me to clear my mind and reach the decision!

nmufti

hi,

After one week i receives email from EA that he is surpised that I have withdraw from purchase and didn't informed him.

I am wondering is there a legal way to withdraw from purchase. All conversation was done on email and i clearly told him that i cannot continue more than valuation price. lateron I also instructed my solicitor to withdraw from purchase.

Can someone pls guide if i missed something? What is the normal process to withdraw?

thanks

david29dpo

No, you can withdraw at any time up to exchange with no reason.
You can write, Email, phone or sent a pigeon if you wish or do nothing.
In this case i would ignore them.

tim123456789

nmufti wrote: »

hi,

After one week i receives email from EA that he is surpised that I have withdraw from purchase and didn't informed him.

I am wondering is there a legal way to withdraw from purchase. All conversation was done on email and i clearly told him that i cannot continue more than valuation price. lateron I also instructed my solicitor to withdraw from purchase.

Can someone pls guide if i missed something? What is the normal process to withdraw?

thanks

I think what he means is that you didn't go back to him and renegotiate.

You may think that you did this, but perhaps he didn't interpret it that way.