Mortgage Company valuation less than purchase price - what can we do?

Kez100

Unless you start training for an Ironman!

Catblue

Hi Shadowplay,

I guess my advice would be to keep looking then. Take your time and don't be rushed into anything.

Don't give up - there's loads of nice flats/houses out there.

ixwood

I am curious as to how/why an obviously well educated and not stupid couple seemed such easy prey for a bit of builder marketing and hype?

Shadowplay_2

Mmmm thats a good question - i have been thinking the same thing. I personally think that buying a property seems to be governed by the heart not the head. We both really liked the property (i love new builds, although i might be the only person on here that does!) and the location. We could imagine sitting out on the balcony, over looking the river, whilst drinking wine on a friday night after a hard week of work. Sigh

Also i read Criminology and Contemporary Culture Studies not House Buying and Mortgages at Uni

As i say we knew the property was overvalued to include some of the benefits but didnt realise the extent to which it was. Lucky escape.

Yeah we will keep looking, everything happens for a reason, maybe our perfect property is just round the corner.

S.

Kez100

Out of interest did you ever consider the parking once all the units were filled or was the dream based on just yourselves and the new build tidied up. I ask because we looked at a new build and the minute I saw the maisonette parking space the show home asked us to use I hated the whole estate. It was obvious that from day one of others moving in the road would be chaos with second cars, reasonable size first cars and work vans as the spaces were so ridiculously small. My husband just couldn't see it.

Dithering_Dad

Shadowplay wrote: »

Mmmm thats a good question - i have been thinking the same thing. I personally think that buying a property seems to be governed by the heart not the head. We both really liked the property (i love new builds, although i might be the only person on here that does!) and the location. We could imagine sitting out on the balcony, over looking the river, whilst drinking wine on a friday night after a hard week of work. Sigh

Phew! I'm not the only person who does this! Thank god!

I also love new builds. Me n the missus looked at some that were not much bigger than our current house and were in locations not as nice as ours but because the show homes looked so nice and new we started getting "carried away". Luckily once we had calculated the stamp duty, moving costs and solicitors fees, we decided it'd be cheaper to stay put and build an extension.

It was a close call though

franklee

Shadowplay, I think a key thing you said has been missed, you said:

Shadowplay wrote: »

We like the property, the area, the network links, (not the chavs) and intend to stay for a number of years (2-5).

Now in my view, in the current market, it's madness to buy for such a short timescale. If house prices were still rising then fair enough. But to buy expecting to stay for as little as 2-5 years now is utterly mad. Especially given what you are currently paying in rent. Please do the sums and work out exactly what mortgage interest you will be paying. Remember the mortgage interest does NOT go towards paying off the loan.

PS. If you like the new build flats that much then why not rent one, I'd expect at least some to come up for rent once they are finished!

Shadowplay_2

To be honest as neither my partner nor i drives or ownes a car the parking situation doesnt matter a hill of beans, as long at the property is on a bus route and is within ten miles of work.

Yes DD its very nice to daydream the perfect life, just hurts when we are dragged back down to reality :mad:

The 2-5 years was an estimate (does anyone buy a proprty with the intention of staying their whole life?). I have an overall life plan and purchasing a property is a key aspect to its success. Also after 7 years of paying other peoples Mortgages i'm truely sick of renting (the flat is cheap for a reason).

So the search for the perfect property goes on.

S.

Guy_Montag

Shadowplay wrote: »

To be honest as neither my partner nor i drives or ownes a car the parking situation doesnt matter a hill of beans, as long at the property is on a bus route and is within ten miles of work.

Yes DD its very nice to daydream the perfect life, just hurts when we are dragged back down to reality :mad:

The 2-5 years was an estimate (does anyone buy a proprty with the intention of staying their whole life?). I have an overall life plan and purchasing a property is a key aspect to its success. Also after 7 years of paying other peoples Mortgages i'm truely sick of renting (the flat is cheap for a reason).

So the search for the perfect property goes on.

S.

Keep an eye out on auction sites:

For example this central-Manchester, two-bed apartment was bought for £240k in 2005 (I'm sure they got 5% deposit paid, an upgrade kitchen & carpeting throughout too), & has just recently changed hands at auction for £138k.

Sources:
Property 157 in the latest auction results below
http://www.barnardmarcusauctions.co.uk/

Post code: M1 1EW
Search on Nethouseprices (or similar) for the original price. (P11 if sorted by address decending)


Anyway you see why we think new builds aren't very good value for money.

RabbitMad

Shadowplay wrote: »

To be honest as neither my partner nor i drives or ownes a car the parking situation doesnt matter a hill of beans, as long at the property is on a bus route and is within ten miles of work.

This is a very intersting approach. If you ate out every day would you consider buying a house without a kitchen? If you didn't wash would you consider buying a house without a bathroom.

Parking can make or break a sale. If there is no parking and on street parking is impossible you'll find many potential buyers are put off when you come to sell on.

You should always aim to view a property at several different times of the day (even if its just a quick drive (or in your case walk) past). This way you see what the parking and traffic is like.