Valuation problem

Thompson24

Hi guys

We have fell in love with a 4 bed it's been done to the highest standard by the current owners, we made and offer for £160,000 which was accepted, however we applied for mortgage and got a valuation done and it came back as £135,000. We were shocked and then tried another lender and came back £135,000. We have done some digging around and been told the sold values in the estate are so low as the other four houses the same house type as the one we want but without having the extensive work carried out on them have all been repossessed and been sold for less than £120,000 so they said this has brought the house prices down. Is there anything we can do as we really need this house. We only have a 5% deposit and can't afford any more. We are happy to pay £160,000 as the house is more than worth it and couldn't get another done to this standard anywhere else however the lenders arnt moving even though three estate agents said the value of £160,000 is justifiable. One mortgage company suggested getting details of three property's of the same style/accommodation and there sales figure.... However as above the only ones the same style have been repossessions. The buyer paid £130,000 for the propert and has spent well over £30,000 on doing the house up and buying a extra plot of land for garden. Any advice as we really want the house?

squeeks

Offer lower, stating the issue you have with the mortgage value, and point out that any other person buying with a mortgage will have the same issue. - you may save yourself £30k, which isn't exactly pocket change.

You can also try to find another lender who may or may not agree with the price, but it is probably going to be pot luck.

Thompson24

I spoke to the seller but unfortunately they can't go any lower due to there personal circumstances and they paid £130,000 for it plus ££8000 for a extra bit of garden and £15,000 on a conservatory and that doesn't inc all the high end doors, fixtures and fittings etc and the brand new £15,000 kitchen etc! It's the only house in the area we need that ticks all the boxes. If this house was on another estate were there was less repossessions then it would be a lot more! It's so frustrating I really don't know where to turn to be able to get it.

kingstreet

Price data for repossessions is not publicly available from the Land Registry, as it doesn't form part of the "sold price" data, so it shouldn't be able to skew comparables used by surveyors valuing for a lender.

Davesnave

I agree that the story you are being given doesn't ring true. This exactly why repos are kept out of the house price statistics.

It's more likely that the house is in an area where valuations are traditionally lower, so what's happened is that the seller is trying to get more than the ceiling price for the road.

Sadly, it may be that you cannot buy with a small deposit and the seller may not see a return on all their investment in the house. There will probably have to be compromises. There usually are.

ethank

My sister recently had something similar on a remortgage on her BTL. The valuation came in 35k below what similar properties are selling for presently.

There was a real lack of recent sales - the mortgage broker said that there is a process - but in 20 years he has never had an valuation come back higher after appeal.

PixelPound

Spending £15K on a conservatory doesn't add it to the value, though adds some value, same with the kitchen. You don't say when they paid £130K, if it was close to 2007, maybe the valuation isn't that far off.

ognum

Thompson24 wrote: »

I spoke to the seller but unfortunately they can't go any lower due to there personal circumstances and they paid £130,000 for it plus ££8000 for a extra bit of garden and £15,000 on a conservatory and that doesn't inc all the high end doors, fixtures and fittings etc and the brand new £15,000 kitchen etc! It's the only house in the area we need that ticks all the boxes. If this house was on another estate were there was less repossessions then it would be a lot more! It's so frustrating I really don't know where to turn to be able to get it.

Spending this much on a house will not necessarily reflect in the selling figure, the kitchen, conservatory and high end doors do not increase the size of the property. This is a case of over developing a house for the area. A extra bit of garden for £8k on a house of this value is a lot.

I think the vendors will be very lucky to find a buyer at this price if the mortgage company's you have approached have all valued at the same price, it has nothing to do with repros as these figures are out of the statistics available to lenders.

Maybe you should sit down and reflect that you may have had a lucky break and not bought something that has been 25% over valued!!

ultrafox

Thompson24 wrote: »

Hi guys

We have fell in love with a 4 bed it's been done to the highest standard by the current owners, we made and offer for £160,000 which was accepted, however we applied for mortgage and got a valuation done and it came back as £135,000. We were shocked and then tried another lender and came back £135,000. We have done some digging around and been told the sold values in the estate are so low as the other four houses the same house type as the one we want but without having the extensive work carried out on them have all been repossessed and been sold for less than £120,000 so they said this has brought the house prices down. Is there anything we can do as we really need this house. We only have a 5% deposit and can't afford any more. We are happy to pay £160,000 as the house is more than worth it and couldn't get another done to this standard anywhere else however the lenders arnt moving even though three estate agents said the value of £160,000 is justifiable. One mortgage company suggested getting details of three property's of the same style/accommodation and there sales figure.... However as above the only ones the same style have been repossessions. The buyer paid £130,000 for the propert and has spent well over £30,000 on doing the house up and buying a extra plot of land for garden. Any advice as we really want the house?

It sounds like you want to pay more!

Crashy_Time

ultrafox wrote: »

It sounds like you want to pay more!

Certainly does. I was scratching my head a bit there, what gives? Would have thought 30k less debt would have been a plus?

Crashy_Time

Ah, I see, the sellers won`t budge, got it. Sorry OP.