Scotland: lender to do own property valuation although there is a home report value

ellie27

We are in Scotland.

Just applied for mortgage for a house which has a home report with a mortgage valuation on it.

The lender says they will need to do their own valuation costing around £400 (a cost we pay) I thought the home report could be used as a mortgage valuation?

davidmcn

It's up to the lender. Some always want to do their own valuation, others will accept the HR provided the surveyor is on their panel, and they will always want an updated HR if it's more than 3 months old (though an update costs less than £400). Check with them what the reason is.

agrinnall

Your problem is that you've done things the wrong way round, you should have got a MIP offer first which would then have allowed you to know what the lender's attitude to valuations was, so that you'd know which surveyor to use for the Home Report. Bear it in mind next time you're buying, good luck with this one!

Taggo

agrinnall wrote: »

Your problem is that you've done things the wrong way round, you should have got a MIP offer first which would then have allowed you to know what the lender's attitude to valuations was, so that you'd know which surveyor to use for the Home Report. Bear it in mind next time you're buying, good luck with this one!

I'm not following you here. Surely wether a MIP was done or not would be irrelevant, it's up to the sellers who they get the home report done by and your blind luck if they are on your lenders panel.

googler

agrinnall wrote: »

Your problem is that you've done things the wrong way round, you should have got a MIP offer first which would then have allowed you to know what the lender's attitude to valuations was, so that you'd know which surveyor to use for the Home Report. Bear it in mind next time you're buying, good luck with this one!

The OP is buying, and is referring to the Home Report commissioned by the seller of that property when they went to market, not one she's commissioned herself.

agrinnall

Taggo wrote: »

I'm not following you here. Surely wether a MIP was done or not would be irrelevant, it's up to the sellers who they get the home report done by and your blind luck if they are on your lenders panel.

googler wrote: »

The OP is buying, and is referring to the Home Report commissioned by the seller of that property when they went to market, not one she's commissioned herself.

:doh: Yes, good points, I think I must still be in seller mode; of course as a buyer you wouldn't normally have to pay anything for the Home Report.

bris

The problem with home reports is the fact they are done by the sellers, the banks simply don't trust them.
There is a rule in place that says they should take them into consideration but they have ways round it.


I had a home buyers report for a flat I tried to sell that said 100k, couldn't even get 80 for it so withdrew it in the end.


There's a reason they were withdrawn in England, they simply don't work as intended, time Scotland followed suit and got rid of this flawed system.

moneyshoe

I couldn't disagree more! I love the Scottish system. We bought in edinburgh in 2007 when prices were crazy, we ended up in bidding wars - bid on a place only to have the valuation (which we paid for) come in way lower than our bid. We paid for at least 2 surveys before we bought our flat.

We sold in 2011 - paid for the homebuyers report - accepted an offer for £5000 less than the value as we needed a quick sale. The buyers lender accepted our report and we were sold within 5 weeks of going on the market.

When we bought last year it was so much easier being able to read homebuyers reports before we even viewed properties. It meant we were much more educated prior to attending viewings and we didn't go into the bidding process blind. For the house we eventually bought the homebuyers report was also accepted by our lender (nationwide).

OP I think you have been unlucky- my experience has generally been that Home buyers reports are accepted - remember if it is 3 months old it needs to be updated anyway and you could ask the vendors to use a surveyor who is on your lenders list.

agrinnall

moneyshoe wrote: »

OP I think you have been unlucky- my experience has generally been that Home buyers reports are accepted - remember if it is 3 months old it needs to be updated anyway and you could ask the vendors to use a surveyor who is on your lenders list.

True, but a refresh costs in the region of £100 whereas a new report by a different surveyor would cost £400+, so unless the OP is prepared to pay the difference I don't see why the vendor would agree.

googler

bris wrote: »

The problem with home reports is the fact they are done by the sellers, the banks simply don't trust them.
There is a rule in place that says they should take them into consideration but they have ways round it.

I had a home buyers report for a flat I tried to sell that said 100k, couldn't even get 80 for it so withdrew it in the end.

There's a reason they were withdrawn in England, they simply don't work as intended, time Scotland followed suit and got rid of this flawed system.

They're not 'done by the sellers', they're done by an RICS surveyor appointed by the seller, or, more typically, by the seller's agent.

The law is clear as to the surveyor's duty of care toward the buyer, even though they're paid by the seller.

What widespread evidence do you have of the banks not trusting them?

"Don't work as intended" - try telling that to the thousands of Scots who buy and sell every week.....

googler

They are Home Reports in Scotland, not "homebuyers reports" ....