Mortgage survey

xjay247x

Hello, we have recently had a mortgage survey on a property we are purchasing, the property has recently been converted and is basically brand new.

The Survey report come back saying the property is valued at the price we have offered, however on the general remarks on condition and future resale this was noted:

"The valuation for mortgage purposes reflects the fact that the property is brand new. This figure may not be attainable on resale as a second hand property especially in the short term"

We are currently awaiting the mortgage offer, would this effect the amount they would offer us?

Or would it be fine as they have valued it what we have offered?

Thanks!

kingstreet

As long as the lender has treated it as a newbuild, you should be fine as long as you haven't exceeded the maximum loan to value.

As an example, in these circumstances Halifax won't lend more than 80%, so a 90% mortgage won't be available.

All the valuer is doing is drawing attention to the newbuild "premium" which won't exist on re-sale so the property value may drop initially. (Think driving new car off forecourt - value drops).

xjay247x

Right, I see, I'm sure it will be fine then (they would have called me by now if there was a problem?) I'll just have to wait for the offer to be 100% sure.

Thanks!

Thrugelmir

The lenders decision may factor in the amount of deposit you are putting down. As it's this that will provide the financial cushion. The surveyor has no idea as to the mortgage you've applied for.