Previous Land Registry valuation very low

youandiaredominoes

Hi there

I am in the process of buying an end of terrace house. I've got the paperwork back from the solicitors and seen that the house's last Land Registry valuation was in 2011 and is £75k below what we are paying for the property (200k)

I actually think the price we are paying is fair and reflects the market- we also managed to haggle 10k off the asking price. However, I looked up what the house next door was worth in 2011 - as it was sold during this year and looked it up on Zoopla. It was sold for near to the price we are purchasing today (£190k). I don't understand why there is a £75k difference between the two properties. The property next door has been done up with new floors, fireplaces etc but is exactly the same size and the renovations couldn't be worth this substantial difference.

Do you think I should be concerned by this discrepancy? The mortgage lender say the valuation we are buying at is fair. I can't think what is causing this difference - my only guess is the owner inherited the property from a family member and this was in 2010.

Any ideas or advice? Thanks!

G_M

As you suggest, it could have been sold cheap to family. Or it might have been in very poor condition and been done up since.

Frankly, looking at historic sale prices is pointless.

Look at the market price today. Compare with other recent sale prices, and other local advertised prices.

Forget 2011.

Argghhh

next door to us is listed at selling at 40k below value - reason was that the lady died, left her share to her son who had to buy the other half from his mothers partner and he wanted cash quick so house valued at less

youandiaredominoes

Argghhh wrote: »

next door to us is listed at selling at 40k below value - reason was that the lady died, left her share to her son who had to buy the other half from his mothers partner and he wanted cash quick so house valued at less

Thanks Argghhh

I *think* that's what has happened here. We really like the property we're buying and although needs a bit of cosmetic work we are keen to go ahead. It's good to hear you've had a similar experience.

I just worried that this might affect the resale of the property. I assume that a buyer only ever sees what the Land Registry values the property from the previous purchase, but not any other purchases before that.

youandiaredominoes

G_M wrote: »

As you suggest, it could have been sold cheap to family. Or it might have been in very poor condition and been done up since.

Frankly, looking at historic sale prices is pointless.

Look at the market price today. Compare with other recent sale prices, and other local advertised prices.

Forget 2011.

Thanks G_M.

I shall forget 2011