Very worried about my purchase, have not received the draft contracts for three weeks

kid_hotaru

Yes, my mortgage has been confirmed (although some information need to be changed). I did not use survey.
The bank valuation was done one week ago. The valuation price is 10% lower than my purchase price. But I'm sure the valuation price is too low...

Surrey_EA

kid_hotaru wrote: »

Good news...thank you...
May I ask you how much time did you spend between the issue of the draft contracts and the exchange of contracts, please?

I would allow 6 weeks to get everything ready to exchange, however, there are a great number of variables that can affect the outcome, so it might be a little quicker, or it might take longer.

Typically leasehold purchases take longer than freehold.

If you are taking a mortgage, and haven't got your application in yet, that's your next job.

Surrey_EA

kid_hotaru wrote: »

The bank valuation was done one week ago. The valuation price is 10% lower than my purchase price. But I'm sure the valuation price is too low...

I would be more worried about this than how long the draft contract took to arrive.

kid_hotaru

Surrey_EA wrote: »

I would be more worried about this than how long the draft contract took to arrive.

Thank you. I will pay attention to this issue....

maninthestreet

kid_hotaru wrote: »

The bank valuation was done one week ago. The valuation price is 10% lower than my purchase price. But I'm sure the valuation price is too low...

Have you informed the vendor's EA that you will be dropping your offer by 10% ???

kid_hotaru

maninthestreet wrote: »

Have you informed the vendor's EA that you will be dropping your offer by 10% ???

No, I have not. Do you mean that I have to reduce my offer (purchase price) because the valuation is low?
I'm quite sure that the valuation is lower than the market price...Can I keep my original offer (purchase price) if I want?

Surrey_EA

You can, but it will depend on the size of mortgage you are intending to take out. 95% LTV and you're going to have a problem, 40% LTV and it's up to you.

kid_hotaru

Update...

I just called my solicitor regarding the draft contract. My solicitor says the vendor is facing a problem on the land registry...

How can a vendor has a problem on the land registry? For example, the vendor could not find the title deed?

I wish this is not a excuse from the vendor. Any comments, please?

Surrey_EA

kid_hotaru wrote: »

Update...

I just called my solicitor regarding the draft contract. My solicitor says the vendor is facing a problem on the land registry...

How can a vendor has a problem on the land registry? For example, the vendor could not find the title deed?

I wish this is not a excuse from the vendor. Any comments, please?

For the vast majority of property in the UK the title is electronically recorded at the Land Registry, so it does not matters whether the seller can lay their hands on any paperwork.

This means the problem could be any number of things, if your solicitor has no further information from the vendor's solicitor, then give the EA you're buying through a call to see if the can get to the bottom of it.

maninthestreet

kid_hotaru wrote: »

No, I have not. Do you mean that I have to reduce my offer (purchase price) because the valuation is low?
I'm quite sure that the valuation is lower than the market price...Can I keep my original offer (purchase price) if I want?

How can you say with such certainty the property has been under-valued by the surveyor? Why would you want to pay more than the property is actually worth?