Property down valued

InhaleMood

Hi all,

I found out on Friday that my lender has down-valued the property I am in the process of buying.


The estate agent is speaking to the vendor to see if they will reduce the cost, and I will meet him half way.


However, just so I am prepared, if he won't reduce it, and I can't find the remaining money and I have to pull out, what costs would I be liable for?


Thanks,
Tanya

ReadingTim

The short answer is all and any you've incurred to date - this can include any work your solicitor has done to date, searches instructed/undertaken (often outsourced to a 3rd party), maybe mortgage broker/IFA fees (depending on the charging structure). Some of these you might be able to defer to another property purchase, others (specific to that property) you won't.

InhaleMood

Ok thanks.Can anyone clear things up for me?
The initial valuation was done about 9-10 weeks ago, and included a parking space. The parking space isn't attached to the property, and is part of an historic agreement with the council. Basically when the road was pedestrianised, the residents lost the parking so the council gave them spaces on a side road.
The valuation report that I received including the parking space, which I thought was correct.
Santander have now come back and said that they want to down value it as the parking space isn't part of the property.
Shouldn't they have highlighted this in the first report?
Anything I can do, apart from possibly pay the extra?

TrickyDicky101

tanyasharma wrote: »

Shouldn't they have highlighted this in the first report?
Anything I can do, apart from possibly pay the extra?

They probably didn't know so couldn't highlight it at that stage.

Your bank is telling you it isn't worth what you've agreed - if you still want to go ahead and can't renegotiate, then you will need to stump up the extra.

InhaleMood

Fair enough, it just seems odd that they wouldn't know. If they went to the property it would be pretty obvious the parking space isn't on the property

ethank

I've seen your other post, and understand now. I assume that the council has given the flats the benefit of free parking, however they do not own the parking spaces.