Lender Valuation Considerably lower than asking price!!!

michaelkosei

julieb1987 wrote: »

You could pay to have another survey done and see what valuation they come up with. If it's similar, it gives you more evidence to your vendors and EA. If it comes back higher, then you can dispute it with your lender. If you really want this house it's worth coughing up a couple hundred quid to get an independent survey.

Thanks for the advice tomorrow i will firstly call the valuation company and ask what sort of maintainance needs to be done on the property further backing a case in price reduction, then head back to vendors and EA.

Sponge

kingstreet wrote: »

It's a set fee for a mortgage report and valuation and it includes the lender'as admin fee.

You can see them here;-

http://www.halifax-intermediaries.co.uk/products/mortgages/valuation_fees/default.aspx

If a customer is going to be paying for a 'better' survey anyway, one which includes a valuation, is there any obligation to pay for the lender's valuation and its associated fees, whatever they want to call them?

kingstreet

Yes. There usually is an obligation.

The lender will normally insist on a mortgage report and valuation being carried out by a surveyor of its choice. This is an anti-fraud measure to combat criminal over-valuation like this;-

http://www.bbc.co.uk/news/uk-england-stoke-staffordshire-12785736

Now, lenders will normally only offer the mortgage report and valuation, or add a Homebuyer's report by the same surveyor for an additional fee.

Using the Halifax example above, this adds £180 to the basic report fee, from £315 to £495.

There may be one or two lenders out there who will provide a list of acceptable surveyors for borrowers to arrange a chartered building survey, with the surveyor typing up the lender's mortgage report and valuation at the same time, but these are fewer in number and more centred on the smaller building societies now the larger lenders use panel managers and large firms, like Allied, Countrywide and Esurv.

Even fewer would offer the borrower a free choice of surveyor.