Difference in mortgage and homebuyers valuations

elvenlomadia

Currently in the process of buying a house (1950, 3 bedroom, midlands, in need of modernisation). Had offer accepted at £160,000. Mortgage valuation came back at this amount, have just had homebuyer's report today which has valued it at £150,000.

The report (in summary) has some general wear and tear consistent with age, kitchen and bathroom need replacing, possible rising damp, re-wire, all things we were aware of when we made our offer (except possibly the damp).

Husband thinks we should possibly try and negotiate the price down a bit, I think it would be more hassle than it's worth and we might end up losing the house if we now come in lower. Any thoughts?

Pixie5740

I think (and I could be wrong) that the mortgage lender will base the loan to value on the valuation (£150k) rather than the purchase price (£160k) meaning that you'll need to stump up an extra £10k on top of your deposit.

elvenlomadia

Thanks pixie, the mortgage valuation came back at our purchase price though, it was the separate homebuyers report (arranged ourselves) that came back at the lower figure.

dirty_magic

Do you know if there's been much interest on the house? The homebuyers valuation is probably more accurate, we were told the mortgage surveyors wouldn't even enter the property.

If the house has been on for a while with not much interest then I don't think you have much to lose by asking. Have you knocked much of the asking price already?

I've found out that we paid the same for our house that needs some work as one the same on an adjacent street which sold just before ours needing no work, but we were up against another offer and I loved the house so I don't regret it.

Hoploz

Just check whether your solicitor passes the homebuyer results on to your mortgage company, as they often work for the lender as well as the buyer and it could possibly put a spanner on the works.

elvenlomadia

Thanks hoploz I hadn't considered that. We have agreed to asking price, there was a fair bit of interest (so I'm told) and it had been on the market for 3 weeks when we offered. We're ftb so not very experienced and yes probably should have haggled more at that stage, however felt it was priced well compared to similar properties in the area and has a lot of things we want.