House under valued by mortgage lender

Dave&katie

Hello,

We've had an offer accepted on a house for £290,000, just had the valuation report back and they have valued it at £250,000!!!!!

The vendor won't budge on price understandably and we love the house and feel that it is worth £290,000.

Could anyone explain what our options are, it's saturday so can't speak to our broker til Monday. Such a frustrating situation!!!

kinger101

(a) Proceed with the sale;
(b) Don't.

The lender will only advance based on the valuation. So if you were on an 80% mortgage, they'll advance £200K now instead of £232K. Meaning you'd either have to find the £32K difference yourself, or switch product (but a 90% still only gets you £225K mortgage). Alternatively, see if another lender comes up with a more favourable valuation (NB - some lenders use same valuers).

mrginge

1. appeal it.
2. Find an additional 40k.
3. Find somewhere else.

1 is unlikely unless you have some pretty good evidence. What reasons has the surveyor given for coming in at 250k?

Dave&katie

Thanks,

No way to appeal the valuation?

Dave&katie

Not given any reasons, we think he is going off street average, however this house is very unique and nothing like the surrounding houses.

Underpaid £150,000 for it 10 years ago and has done £100,000 with of work on it

Dave&katie

*Our vendor not underpaid

keith969

Walk away. You could end up with the same problem if you came to sell later.

kinger101

Yes, but you need grounds for the appeal to begin with.

He's an example of what Halifax require;

https://www.halifax-intermediaries.co.uk/products/mortgages/valuation_appeal_process/default.aspx

Please note, you're not going to get anywhere by saying your property has a better standard of finish. Valuers largely disregard these things as they might not be reflected in the resale value if the bank needed to repossess in say five years.

Dave&katie

We really don't want to walk away, never found a house we love as much as this!

Browntoa

you've overpaid , that's the valuation

Dave&katie

Thank you for that link that's very helpful!

Will do some research today then.

As the house is pretty unique to the area it may be difficult, any advice on how to start looking?