1st time buyer. Mortgage valuation lower than possible offer

imoustache

Hey guys,

My partner and I just managed to save the minimum 5% deposit to buy our first home in London. It's crazy at the moment, with every property having an open house, and lots of offers on the table.

There's this flat we absolutely love, which we're more than prepared to put in an offer for. There's already a few offers on the table, as with any decent London flats. There was a fall through with this flat, so there's a survey valuation of £215k.

We want to put in an offer of £240k in, but will Halifax give me the 95% of £240k? We're super confused. We have the 5% towards deposit ready to go, and have been offered a £255k mortgage from the bank. Or will Halifax want to lend us only 95% of the £215k? What about the other £25k?

Thank you so much in advance :A

ACG

Any lender will lend the maximum against the lower of the valuation or the purchase price.

There are some exceptions but 99% of the time the above is true.

kingstreet

Who valued it at £215K?

If it's Colleys, LBG's in-house survey firm you are going to struggle to get Halifax, BoS, Lloyds, Scottish Widows Bank, TSB or BM Solutions to see past that.

You need to know which firm carried out the valuation and for which lender.

Then you need to arm a decent broker with that information and let them think it through.

You will be able to borrow upto 95% of what YOUR lender's appointed surveyor thinks it's worth, not someone else's. Question is, is your lender's surveyor the same as their's...?

imoustache

Hi guys, thanks for the responses.

The buyer who pulled out, was doing his/her mortgage through Halifax, and a Halifax surveyor valued it at £215k.

And I can only use Halifax due to my partner's residency status. So I guess, the £215k previous valuation will stand, unfortunately.

In this case, how can I get the extra £20-5k?

Thanks again

ACG

Was the £215k valuation because thats what was offered or did it come back lower than the offer?

You could make a new application, see what the valuation comes back at and amend your offer inline with the valuation and see what they say?

If the valuation comes back below £240k and the vendor will not negotiate then you either need to pull out or find the difference.

In this case, how can I get the extra £20-5k?

Save it, hope your numbers come in, ask family? Its a bit of a difficult question to answer that one.

jennyred

we had similar

house on market for £115k, we put in full asking price as lovely house, valuation came back at £105k.

we had a 14k deposit so mortgage would only lend 91K

seller wanted 106k so we had to fund the extra 1k ourselves from savings. (so in effect a 15k deposit)

Poppy9

Did the previous sale fall through because of the lower valuation? If s o why do think the flat will sell for so much above it's valuation?

Thrugelmir

imoustache wrote: »

The buyer who pulled out, was doing his/her mortgage through Halifax, and a Halifax surveyor valued it at £215k.

Why is the property now worth £240k ?

imoustache

Poppy9 wrote: »

Did the previous sale fall through because of the lower valuation? If so why do think the flat will sell for so much above it's valuation?

There was some subsidence issues with the flat, which according to the estate agents, have been sorted. Unknown reasons why the buyer pulled out.

There are already offers on the table for this particular flat. Estate agents told us to think about our best and final offer for tomorrow. At least 5 other people have placed offers.

brit1234

Why do you want to overpay on a money saving website? :money:

imoustache

Thanks for sharing I'm starting to get the full idea of this works now.

Lucky you that it was only £1k.

jennyred wrote: »

we had similar

house on market for £115k, we put in full asking price as lovely house, valuation came back at £105k.

we had a 14k deposit so mortgage would only lend 91K

seller wanted 106k so we had to fund the extra 1k ourselves from savings. (so in effect a 15k deposit)