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

lynzpower

Shadowplay wrote: »

I didnt realise that you lived in Manchester Lynzpower, are you from Manchester originally? or did you go to Uni here?

Hi Catblue, i have lived in Moss Side, Fallowfield, Heaton Chapel and Didsbury. my Partner is from Burnage. The Persimmons Home was in Northenden

We have looked all over Manchester and Stockport (trying to stay on the 42 or 41, 43 bus routes), we are not limiting ourselves to just Didsbury (we have actually only looked at one flat in Didsbury).

My partner works in Fallowfield and i work near Manchester University but i cycle (through the death trap that is Rusholme!) so cant really be any further than 10 miles away.

S.

Nope. I grew up there, then left for the smoke. like to keep an eye out on the manchester scene tho in case I see any bargains

To be honest in some parts of Stockport you can get a 3 bed semi for around the 90k mark, but if you are stuck on certain bus routes as opposed to train then that wont help.

eg http://www.rightmove.co.uk/viewdetails-15221533.rsp?pa_n=5&tr_t=buy
http://www.rightmove.co.uk/viewdetails-6535776.rsp?pa_n=5&tr_t=buy

more expensive ( although they are large houses)
or a 2 bed newly refurbed house in rusholme if that appeals
http://www.rightmove.co.uk/viewdetails-15417745.rsp?pa_n=1&tr_t=buy

3 bed house round Mauldeth?
http://www.rightmove.co.uk/viewdetails-15755896.rsp?pa_n=1&tr_t=buy

Proper gardens too, a far cry from a poky balcony....

Shadowplay_2

Yep, i dont like to cook so all we need installing is a kettle for the pot noodles - do you think they would knock £18,000 off the purchase price if we go with no kitchen???

liar is such a stronge word but yes, yes she is.

We are only looking at 2 bedroom flats or 2 bedroom terrace houses (although i want a flat - we dont really want a garden). Fussy and stuborn springs to mind

MMM well we have had an up-date to the Persimmons mess. they have phoned me again today and asked that we drop off the Valuation Report (£150,000) so they can fax it off to head office! I think they will be phoning us for a while yet.

S.

vellum

Guy_Montag wrote: »

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.

a quick look at https://www.houseprices.co.uk, the flat was bought at the end of oct 2005. so the price dropped a tearful £102k within 22 months, that is shocking. maybe just an unusually extreme case.

the luxury new built apartment that we used to rent is up for sale at the mo, the sales price is £16k below purchased price when sold in mid 2004, similar properties are selling at same price so it is the going rate. so the property has been losing about £450 per month for the last 3 years.
some new built flats don't retain the value that well.

what about those split level flats that have been converted from a house? do they retain value better?

Guy_Montag

Obviously we don't know what incentives the punter who bought the place got, so we don't know the true sales price, but it's going to be above £200k & probably closer to £220k.

Obviously this was a repo sold at auction, so while officially it got the best price (enough to cover the legalities), it could probably have made a bit more if sold through the usual channels.


I notice number 100 in the same development lost £25k in 4 months. That's got to sting!

lynzpower

Guy_Montag wrote: »

Obviously we don't know what incentives the punter who bought the place got, so we don't know the true sales price, but it's going to be above £200k & probably closer to £220k.

Obviously this was a repo sold at auction, so while officially it got the best price (enough to cover the legalities), it could probably have made a bit more if sold through the usual channels.


I notice number 100 in the same development lost £25k in 4 months. That's got to sting![/quote]

ooooof

imagine being the poor sod that bought it - I do feel for these people, I could have been one myself if it werent for sheer good luck

vellum

it is a catch 22 situation, to sell will lose money, not to sell means a hefty mortgage every month...

TANZA_2

Overvalueing doesn't just happen on new builds. In my village people are asking ridiculous prices and sell quickly only to find that the buyer can't get a mortgage as the valuer won't value it at the asking price. The only sure way of making sure you sell at the high price is for a cash buyer. We were hoping to buy a house but we couldn't afford the asking price of £195000 and as the last house to be sold on the estate ( identical) was sold in October for £175000 so we hoped it would come down in price. However, along came a cash buyer and offered the full asking price! Now houses on that estate have high expectations and one house is up for £230000. I just feel as if we'll never be able to buy a house in our village.

skintlass

Is it only buying direct from the developer that people expect new houses to drop in price - i.e. if you buy a new build after someone has already owned it for a few years would you not expect it to increase in value from your purchase price (depending on the overall market of course)?

Doozergirl

Once something is a few years old, you would expect it to fall in line with other house prices yes.

I still wouldn't buy a second hand city-centre apartment really, just in case. There is vast oversupply.

skintlass

Its a house I'm after so a safer bet