Valuation lower after contract exchanged.

holly_hobby

Yorkie1 wrote: »

Back to the OP, I'm slightly concerned about the steps which might be planned to cover the gap - if a bridging loan is obtained, would this have to be declared to FD, and/or could FD pull the whole offer if they do a final credit check before completion?

Or, if the gap is by a family loan, would this also have to be declared?

I'm not trying to worry the OP but just trying to cover the relevant bases.

With regards to declaration Yorks ..

Yes any loan, bridge finance, unsecurd personal loan, family loan, etc - would all have to be declared as a material fact of the application.

Yes, also to any ad hoc pre completion audit check of FD re any undeclared CRA registered loan that appeared (as obv a family arrangement wouldn't be recorded).

Really, this has all been caused by FDs highly "unusual" packaging process ... and if the OP has to withdraw from the pch, then I would press for FD to meet any penalties (ie loss of conveyencing deposit etc).

Holly x

Dave_the_Ginger_Cat

I might offer a slightly differerent take on this.

I have routinely offered conditional mortgages with any number of conditions attached to them. It could be a damp report or as much as the whole survey.

If the original offer was clear that it was conditional on survey receipt, my belief is that it is the solicitor's duty to ensure that all conditions are met prior to exchange or make it really very clear the risks their client is entering into by exchanging with conditions unmet.

I'd have to have a look at the offer to offer better advice on this topic. It may be wise to have an independent solicitor look at it if you are going down the compensation route or trying to exit the contract.

Any lawyers here who'd be willing to comment on this point?

moneysavingrock

Hi all.

Just thought I'd close the loop on this.

A work colleague recommended an excellent mortgage broker who really helped us out (I should have taken his advice the first time and went to a broker). Mortgage broker found us a mortgage with Nationwide with similar terms as First Direct, they also will take a home report as a valuation. As the home report was out of date seller had one redone, which we paid for. This came in £40,000 more than the banks vauation!!! Which exceeded our purchase price. The mortgage broker managed to get an application processed and an offer sent out from Nationwide within 6 days and we moved in on Monday.

We had heard that banks are unofficially instructing surveyors to value low but for the difference to be £40,000 between two valuations carried out a week apart is hard to take in.

Anyway a harsh lesson has been learned. Still unhappy with First Direct, who have responded to my complaint with a standard we are looking into it e-mail, and also my solicitor, but I do take the ultimate responsibilty for it. Some better advice from solicitor would have helped though.

Once again thanks to those who replied especially Holly Hobby, I think just getting professionals take on things helped calm me down!!

Cheers

holly_hobby

Glad posts helped, and that you managed to rectify the probs - well done.

Enjoy your new home !

Holly x