what happens during the mortgage process when the valuation expires?

wannahouse

what happens during the mortgage process when the valuation expires?

we had the original offer 9 weeks ago, but it was not concise enough about the works that needed to be done before completion, so we couldn't use it to exchange, and it went back to the underwriters for a point list to be done for the mortgage offer.
in the mean time, lloyds tsb has changed to lloyds and Tsb , and the old mortgage system our offer was on, was taken out of action, and C&G switched to their new system, so alot of mucking around has happened getting our application transferred from one system to the other, none of which was our fault.
apparently , they were ready to finally issue the new mortgage offer, but have now run into a problem, of the valuation now being over 3 mths old, because of all their mucking around, so the computer system won't accept it, and the lloyds mortgage adviser says no one has given them any guidance on what to do now, so more time is being wasted while they try to sort it!

how can it take soooooooo long?
really, is it that hard?
what would normally happen in this circumstance?

also forgot to mention, it has been a really complicated process (you can see from my previous posts) getting to this point from the original valuation, with different investigations and back and forth btwn the valuer, surveyor and the bank, so to have the valuation expire before the finally even got the mortgage offer out is just really really annoying!

amnblog

Ordinarily on this timescale the lender refers back to the valuer and no second visit is required (assuming there have been no specialised reports requested or major work undertaken on the property).

wannahouse

amnblog wrote: »

Ordinarily on this timescale the lender refers back to the valuer and no second visit is required (assuming there have been no specialised reports requested or major work undertaken on the property).

thanks for your reply...

there were specialist reports requested and we had all that done , and the risk to the lenders was assessed to be nil, but works required, which we have agreed to do before the mortgage can complete.
the underwriters decided to over ride the valuers concerns, based on the findings of the 75 page survey report our FRICS surveyor submitted, so the valuer had to then issue a value for the property, which he did, ( and it was ofcourse for the purchase price)...all this back and forth took months (we applied for the mortgage at the start of march, and the valuation was done in april sometime, as they took forever to even come out, so once the valuation was amended to show the market value, they issued the first mortgage offer, but said it was on the terms we carried out the works our surveyor recommended before completion, but as i mentioned, there was no laundry list.
the surveyor actually stated in his report for the bank, that " there was no onerous risk to the bank provided we carry out the works soon AFTER completion", so the mortgage manager and his boss then went back to the underwritersand asked them to consider just letting us buy it and carry out the works AFTER completion, as technically, thats what the surveyor had recommended and the mortgage offer deferred to his advice.
this then went all the way up the chain to the head of underwriers , then the head of valuations, and then to someone else , god knows who, taking more time, then the final word was ,no, they want the works done, so would issue the new offer to reflect that.
so they had to go through the process of ow doing that on the new system, and then ran into this validity problem, so its not as if we've sat here doing nothing and then tried to use an old valuation!

so in this circumstance, even though the valuer was WRONG on alot of the issues he threw up (non-existant japanese knotweed for one!) would they still refer back to him to confirm its still worth the purchase sum?

why can't lloyds work out how to process a mortgage?

we're so lucky we have had patient vendors.

amnblog

The length of your posts tells me that the situation is very complex.

Lenders find it difficult enough to process cases generally without switching computer systems halfway through.

It looks like unfortunately you have been caught in the crossfire.

wannahouse

amnblog wrote: »

The length of your posts tells me that the situation is very complex.

Lenders find it difficult enough to process cases generally without switching computer systems halfway through.

It looks like unfortunately you have been caught in the crossfire.

so its just a matter of waiting and letting them sort it out again?

its such a shame that we've lost the whole summer to do the works- by the time we actually get to exchange, it will probably be freezing cold and pouring for weeks on end causing even more delays!
so frustrating not being able to do anything to speed it up...!

wannahouse

yay!!!
my husband just got an email through, saying they have managed to get the valuation across now, so are sending it over to the underwriters to issue the new offer, so we should be on the home straight!!!
- only 8 mths after making the offer!