Mortgage company under valued my flat!

Hannie2805

Hi

I had an offer accepted @ 300k for my flat and nationwide (my buyers mortgage company) only valued the flat @ 275k.

The people downstairs on the ground floor are selling theirs @ 300k also and got 300k valued by Halifax.

The flats are exactly the same size and layout - the only difference is theirs has a 1m x 1.5m of patio. My flat is on the 2nd floor.

Is it worth asking my buyers to try and get their mortgage via Halifax and see whether they will value for 300k also? The buyers are prepared to pay 300k.

What would you do?
Thanks

libf

Are there comparable properties which are listed with the land registry as having been sold recently? These can be used by the buyer to dispute the valuation.

I don't think it's your place to suggest mortgage companies for your buyer.

audigex

The mortgage valuation only matters to your buyer, unless it affects their ability to buy your property.

Your sale price is the "true" value of the property, the mortgage valuation is there simply to define the mortgage company's estimation of risk. Unless it is stopping your buyer getting enough of a mortgage to buy your flat (ie it stops them getting a large enough mortgage), it's not your issue: it doesn't affect the price you've agreed.

Hannie2805

libf wrote: »

Are there comparable properties which are listed with the land registry as having been sold recently? These can be used by the buyer to dispute the valuation.

I don't think it's your place to suggest mortgage companies for your buyer.

Hi

I haven't told them to go with Halifax however, if they don't then we may have to re-list the flat as we can't afford to loose out on 25k

Thanks

Brock_and_Roll

OP, a lot of people come on this site with the reverse of your question - thay have made an offer on a property they like only for the valuation to come in below the offer figure.

The consensus advice is usually that the prospective buyers should lower their offer accordingly - why, in the absence of exception circumstances, would anyone more for a property than the value established by experts?

I suspect that there are only three eventualities with regards to these buyers:

1) They revise their offer to £275k
2) They walk away
3) They put up an extra £25k of their own cash (unlikely)

With regards to house prices, I note from your other posts that the flat was a new build and was purchased on a shared-ownership basis. These are two of many reasons why the re-sale value may not accurately track the value of property in the greater London area.

ACG

Is theirs freehold and yours leasehold? How long is left on your lease(s)?
They also have a patio but £25k for that alone seems a lot.

Could it also be in a better condition? New bathroom/kitchen could make a difference.

Hannie2805

ACG wrote: »

Is theirs freehold and yours leasehold? How long is left on your lease(s)?
They also have a patio but £25k for that alone seems a lot.

Could it also be in a better condition? New bathroom/kitchen could make a difference.

If anything, I would say mine is in better condition / looks bigger brighter. The lease remains are exactly the same as we bought the brand new flats at the same time.

25k for a patio is a lot for less that 3 squared metres in croydon! I could understand if in Belgravia but come on! Lol

Andypandyboy

I think in the London flat market outdoor space can command a premium.

Brock_and_Roll

Andypandyboy wrote: »

I think in the London flat market outdoor space can command a premium.

True, but on the other hand it is a ground floor flat in Croydon - for security reasons alone I would not buy the ground floor flat at any price as I like to have my windows open at night.

Fair to say that banks and valuers are starting to get a bit nervous of the overheated London market now.

Angie_B

Brock_and_Roll wrote: »

The consensus advice is usually that the prospective buyers should lower their offer accordingly - why, in the absence of exception circumstances, would anyone more for a property than the value established by experts?

I suspect that there are only three eventualities with regards to these buyers:

1) They revise their offer to £275k
2) They walk away
3) They put up an extra £25k of their own cash (unlikely)

It is not always that simple. Sometimes the 'experts' don't take into account all the same points as a buyer.

Nationwide appear to be erring on the side of caution at the moment. The 'downvalued' the property I have just purchased by comparing to an, on paper, similar property that had sold 6 months previously on a parallel street. What they did not take into account was that:

a) The property I bought has the biggest plot in the area (bigger than their comparable by a fair amount). I want to extend so this was important to me.
b) My property has a 75 foot south-facing garden - the other's was much smaller and north facing.
c) Most importantly, the flood risk on the other property was in a higher band, due to proximity to the 'river' (aka little brook, but still causes flood warning from the environment agency).

None of this was taken into account by their surveyor and all was worth something to me, so I was happy to pay a bit above their valuation.

alchemist.1

Or Halifax have overvalued the flat on the ground floor. Can work either way.