Santander - Valuation late in the process ?

Dan-Dan

Hi

We are selling .and buying , and in early July the solicitors told me that the sale was going well , but the purchase was dragging a bit , tunred out the vendors had put an offer in somewhere rather than going to family first but anyway.....just had a call from the estate agent to say the valutaion of ours is due this friday , they offered in MAY! and the building survey was late June..

Aside from the fact we assumed as they were selling a 500k house they wouldnt need lending , is this what others would say comes under sale `going well` ?
We have even had the enquiries sent and answered etc already , nearly two weeks ago ?

Will contact solicitors tomorrow but is it usual for Santander to do the valuation so late ?

Thrugelmir

Perhaps they've only recently applied for a mortgage. If downsizing perhaps its separation as well.

Dan-Dan

It`s a family moving in , i just cant really understand how anything can be described as going well ,when finance isnt even in place!
Makes me wonder why they would pay legal fee`s etc before even having there purchase price approved by the lender
Our house is at 310k

The estate agent told me they would help `justify` the offer , though it shouildnt need to be justified , and i know that at this stage the estate agent cant effect things of this nature anyway , he also told me Santander always do valuation late , but that doesnt really make a lot of sense to me

Hoping that its likely to be a drive by and the wait in our area possible caused the delay because i cant see why the buyers would wait all this time , after incurring costs , to apply for the mortgage

kellyt86

If they are selling a 500k house doesn't mean that they are cash buyer they may have not had 310k in equity so some of house sale is paying off existing mortgage, and taking out another mortgage!

Agree though that you should have been told though! And surprising that they are having survey and valuation separately... Thought it was norm to do it together.

Also surprising that they did all legal bits before having mortgage in place!

Dan-Dan

My solicitor wouldnt start anything until having our mortgage offer in hand....our valuer went out (or didnt!) and we had our own survey done 2 weeks later..
Now i face yet another weekend of uncertainty and worry , when we were under the impression everything below us was all on track , there was me concentrating on getting the purchase all in order , if this falls through i`ll sell the house at auction and go and live on a bloody boat

Yorkie1

Survey can be done separately by a buyer if they don't want to use the lender's surveyor.

Many people are reporting delays in a lender's surveyor being able to inspect the property for valuation purposes, so this sequence may not be unusual.

And, as you say, some lenders only instruct the valuer once all the other underwriting stuff has been done (don't know Santander's practices though).

kellyt86

Remain positive it will all work out!

Hopefully you will hear Monday and aquatic housing will not be necessary!

Dan-Dan

Yorkie1 wrote: »

And, as you say, some lenders only instruct the valuer once all the other underwriting stuff has been done (don't know Santander's practices though).

I think i read somewhere that Natwest do this , but wasnt sure on Santander , either way , when you think your so close , to then get this news , well , it`s a bit of a downer , i have yet to tell the wife

sockpuppet

Santander do not instruct the valuation until the case has been fully underwritten and agreed.
Therefore the valuation will not be carried out until some time after the application has been submitted

Dan-Dan

sockpuppet wrote: »

Santander do not instruct the valuation until the case has been fully underwritten and agreed.
Therefore the valuation will not be carried out until some time after the application has been submitted

Thanks SP , that makes us feel a bit better....BUT i have a question then , if a purchaser proposes say a 90% ltv , and another a 40% ltv , do both cases get valued at the end ? , seems to me work would have been carried out by the lender that could have been avoided before an undervaluation occurs ?

edit , plus , why bother with a valuation if its already been agreed and under written!?

sockpuppet

All applications are instructed at the end.

When they say agreed, it is subject to the valuation but as long as nothing is thrown up on the valuation report, then the case will proceed to offer.

Quite often with Santander, the valuation is free and so this saves costs being incurred on a case that is not able to proceed for one reason or another.

The only difference is on buy to let applications, where they instruct the valuation at the start.