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Offer and Valuation
jrsga
Posts: 93 Forumite
Hello
I am after some thoughts/advice.
I had an offer accepted on a property and am borrowing with an LTV of 36%.
Am awaiting the homebuyers report and trying to do some forward thinking.
As we know valuing a house is not an exact science.
If the valuation comes back lower than the offer that was accepted am I right in thinking because the LTV is low at 36% then the lender is MORE likely to lend to me as its still worth far more than what is being lent to me, therefore covering them?
In addition to that presumably I would go back to the seller and tell them its only been valued at X and therefore re-negotiate the price?
Is it just a case of "this is the valued price" so its up to you IF you want to negotiate the price down?
thanks
I am after some thoughts/advice.
I had an offer accepted on a property and am borrowing with an LTV of 36%.
Am awaiting the homebuyers report and trying to do some forward thinking.
As we know valuing a house is not an exact science.
If the valuation comes back lower than the offer that was accepted am I right in thinking because the LTV is low at 36% then the lender is MORE likely to lend to me as its still worth far more than what is being lent to me, therefore covering them?
In addition to that presumably I would go back to the seller and tell them its only been valued at X and therefore re-negotiate the price?
Is it just a case of "this is the valued price" so its up to you IF you want to negotiate the price down?
thanks
0
Comments
-
Sounds like the mortgage will not be an issue but as you say you may wish to reconsider your offer if the property is down valued.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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