Help! Paid over the Home Reprt Value....will I get the valuation???

Walker_86

Hi everyone,

I hope you can help?

We found our dream home and went to a closing date with a number of bidders, long story short we won, offering over the asking price.

We offered £161,250 and the property home report value is £155,000.

While processing the mortgage application (which we sailed through budget/credit score wise) we were told they would only offer us a mortgage on the £155,000.

I have done some research and it seems this is correct (will give you what's lower purchase or value).

What can I do??

Is it likely the lender valuation come up to £161?
Properties similar in the area have sold recently for this...

Is the home report value what they should be taking into account?

If we don't get this valuation at £160k we may need to pull out of our dream house.

Please please help?

Also as an aside, can fees be added to a mortgage as long as you are paying a %? Ie I. Fee is £1000 can I add to mortgage and pay £100 (assuming 90 LTV)

Thanks for reading

silvercar

Some say that is property is worth what someone is prepared to say, others that it has a value and if someone wants to pay over the odds it isn't worth me. Shrugs.

The best guess on lender's valuations is the prices that similar properties have sold for.

On your last point, if the loan is 90% LTV, then the lender will only give you 90% of the valuation, whatever fees you have - they won't give 90% of value+fees.

Immers7

Renegotiate with the vendor to £155000.

Walker_86

Thanks for the advice...

The trouble with negotiating with the vendor is they have two other interested parties, but I suppose they will be in the same boat.

What are the chances of the valuation being nearer £160k? Similar house in the street don't sell very often, and one sold for £163k last october but one other sold for £140 odd!!

stator

This is Scotland?

pamelab21

I assume you are in Scotland as are we. We have re arranged our mortgage with Britannia and they contacted the surveyors who did the original valuation for the HR for the figure. In our case we are paying full HR value for ours but we are only 45%LTV so we were fine anyway.
Some houses up here are going for more than Home Report when there is a lot of interest and that wont matter to some people who do not have big mortgages. Only when you are close to your LTV will you have trouble. Can you not use savings etc?
I would imagine if you try to renegotiate they will just go to the next bidder and see if they are still interested.
All the best.

Walker_86

Thanks guys....we may have to visit the bank of mum and dad to help cover.

the frustrating thing is i have bonus due in February that will MORE than cover the difference.

timing is everything it seems...

Yeah, a re-negotiation will cause us to lose it.