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Property value - price paid or lender valuation?

suski1
suski1 Posts: 9 Forumite
in Mortgages & endowments
Hi All,
This post is related to another post I have on the forum. Brief background - I agreed a purchase price of £155k for a property. The lender have valued the property at £147k.

Does this mean the purchase price on legal paperwork etc would how as £147k or £155k?

Sorry if this is a silly question - I seem to be getting a lot of conflicting advice.

Thanks

Comments

  • Contemptuous
    Contemptuous Posts: 516 Forumite
    Purchase price and valuation are two separate things.

    The purchase price quoted on the mortgage offer and legal documents will be the price you pay for the property. The lower of the two figures will be used to calculate LTV.
    Slummy mummy!
  • silvercar
    silvercar Posts: 50,021 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    The purchase price will what will be registered with Land Registry and show up in future search prices on zoopla etc as the price paid.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • suski1
    suski1 Posts: 9 Forumite
    Thanks, very helpful.

    My broker has sent me an email which says - Legal paperwork must show sale price of 147k.

    Is he wrong??
  • amnblog
    amnblog Posts: 12,771 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Unless you have reduced the price, that is a typing error.

    The purchase price is what it is, and agreed between you and the vendor.

    The lenders lends only against the lower of the purchase price or the valuation.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    suski1 wrote: »

    Sorry if this is a silly question - I seem to be getting a lot of conflicting advice.

    What are you proposing to pay for the property?
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