New build survey down valued

bob_a_builder

but still happy to pay the premium. It's the lender who is not.

So you will have to fund the difference yourself if you want it.

Builder sees it as a rising market so likely to be another purchaser along any day now.
Its his house he can hold out for whatever price he likes

Valuation isn't really the value of the house, its what he lender thinks he could get for the plot of land and the pile of bricks if it fell down tomorrow

ethank

I would put my concerns in writing to the Sales Executive at the development and ask them to come back to me with a solution in writing. Can you guesstimate how much you would lose from year 3-5 and see what they will offer you if you go to Halifax.

They may put some other stuff into the deal for you.

ruggedtoast

Sparx wrote: »

The other point was, what if Halifax down value as well? They don't even know if they will survey the house at their asking price. They have sold previous homes the same but with a garage and drive not even 12 months ago for approx. 8% less.

I already said yes it's inflated I'm aware, but still happy to pay the premium. It's the lender who is not.

If they won't drop their price you can either come up with the money another way or not buy it, because you don't have the money.

They aren't forcing you to change lender, they are suggesting a lender who might lend to you, and no, you can't sue them.

Sparx

bob_a_builder wrote: »

So you will have to fund the difference yourself if you want it.

Builder sees it as a rising market so likely to be another purchaser along any day now.
Its his house he can hold out for whatever price he likes

Valuation isn't really the value of the house, its what he lender thinks he could get for the plot of land and the pile of bricks if it fell down tomorrow

Neither broker or developer has suggested I fund the difference. Probably because I am using the HTB scheme, if I had spare money to fund a larger deposit I probably wouldn't be using HTB! 'Nor would other buyers coming through the sales exec doors.

It's not that big of a market in my area (Lincolnshire) and they are selling the homes well, but very slowly. They are still trying to sell next door's house to where I will be.

ethank wrote: »

I would put my concerns in writing to the Sales Executive at the development and ask them to come back to me with a solution in writing. Can you guesstimate how much you would lose from year 3-5 and see what they will offer you if you go to Halifax.

They may put some other stuff into the deal for you.

She's already aware and planning on coming back to me Thursday with the 'proposed solutions' from head office how they want us to proceed. And nope unfortunately my crystal ball doesn't tell me what the interest rates will be in yr3-5. I am assuming worst case scenario that interest rates will rise, they can only go up! So I know I will be in a worse situation one way or another.

ruggedtoast wrote: »

If they won't drop their price you can either come up with the money another way or not buy it, because you don't have the money.

They aren't forcing you to change lender, they are suggesting a lender who might lend to you, and no, you can't sue them.

Answered slightly in my 1st quote above. The thing is, what will they do when the next buyer comes along and chooses to use Nationwide, Natwest, etc and they down value it as well?

I'm not looking to sue them! Haha. I just wanted to see if they was allowed to cherry pick and force me with a lender I don't want to use and would put me in a worse financial position. I was wondering if any regulatory body could put them in check but obviously not, it's just immoral and bad practice rather than illegal.

The broker has suggested to the developer that if we do proceed with Halifax and they survey at the requested purchase price, to 'compensate' they pay towards our legal fees. I was also going to ask for our stamp duty to be paid (only 1%) as well if they want to just keep their land registry prices up. I would be just about happy with this arrangement if they agreed to this.

We shall see!

bclark

It really all comes down to how much they want to sell the house to you. If they are confident that another buyer will appear quickly then you probably won't get far with complaints or writing to head office. If you get the feeling that they are very keen to sell then you should hold out for the price reduction using your preferred lender.

It really is as simple as that and you shouldn't try and confuse matters by claiming that they are trying to force you to use a particular lender or anything like that. You have agreed a price for that house and at the moment you can't get the funds from your preferred lender in order to buy it, the developer has given you an option that they believe will mean you can.

If you chose not to use this option then it comes down to how much they want to sell you the house, they may decide to sell it to someone else and you lose out or they may decide that they want to make a sale and its worth their while taking a price reduction to do this.

Sparx

Very true bclark thanks for putting it as plainly as possible. I'm too frustrated to think it through straight in my head from that perspective so thank you!

We love the house and like I said we are happy to pay the price, just unfortunate we will be stuck with a worse mortgage product with another lender. We will just have to crack on, try it with the Halifax and just hope they down value as well so things hopefully move in our favour and we can go back to Nationwide..

If worst case scenario we pull out, does anyone know if I would be able to claim back our full £500 reservation fee? The forms state if we don't go ahead they can deduct a £300 administration fee, but is this still deemed as our fault if we don't go ahead?

Sparx

Just to update this thread, the developer decided to accept the down-val from Nationwide and sold to me at the reduced price while retaining the offered incentives.

Result! I'm a happy customer.

gazter

Sparx wrote: »

Just to update this thread, the developer decided to accept the down-val from Nationwide and sold to me at the reduced price while retaining the offered incentives.

Result! I'm a happy customer.

That's officially a result!!! That surveyor was pretty darn good luck for you!

tinkledom

Sparx wrote: »

Neither broker or developer has suggested I fund the difference. Probably because I am using the HTB scheme, if I had spare money to fund a larger deposit I probably wouldn't be using HTB! 'Nor would other buyers coming through the sales exec doors.

It's not that big of a market in my area (Lincolnshire) and they are selling the homes well, but very slowly. They are still trying to sell next door's house to where I will be.



She's already aware and planning on coming back to me Thursday with the 'proposed solutions' from head office how they want us to proceed. And nope unfortunately my crystal ball doesn't tell me what the interest rates will be in yr3-5. I am assuming worst case scenario that interest rates will rise, they can only go up! So I know I will be in a worse situation one way or another.



Answered slightly in my 1st quote above. The thing is, what will they do when the next buyer comes along and chooses to use Nationwide, Natwest, etc and they down value it as well?

I'm not looking to sue them! Haha. I just wanted to see if they was allowed to cherry pick and force me with a lender I don't want to use and would put me in a worse financial position. I was wondering if any regulatory body could put them in check but obviously not, it's just immoral and bad practice rather than illegal.

The broker has suggested to the developer that if we do proceed with Halifax and they survey at the requested purchase price, to 'compensate' they pay towards our legal fees. I was also going to ask for our stamp duty to be paid (only 1%) as well if they want to just keep their land registry prices up. I would be just about happy with this arrangement if they agreed to this.

We shall see!

We purchased our new property in 2003 from Wimpey McLean.
They wanted £147000, I offered £140000, Eventually we settled at £142500 with the developer funding all white goods, carpet, turf front and back and quality fencing all round. It was a cash purchase which may have had something to do with it.


Developers will move if you push hard enough much to the annoyance of my next door neighbour who paid full price and received no goodwill goods & services.

ging84

I think this is good news for you
i think even if another lender had offered the higher amount, you would have been disappointed if you looked at the sold prices a few months after buying to find you paid at-least 5% more than everyone else