House under valued by mortgage lender

Dave&katie

Browntoa wrote: »

you've overpaid , that's the valuation

I really don't think we have though, is there anyway the valuer could be wrong? Estate agent (although very bias I know)can't believe the valuation. We actually went to sealed bids and won by £500, so obviously another buyer feels it is worth that too. I understand that what people are willing to pay and what a property is valued at are different but £40k seems like an awfully big difference!

elsien

Just because the vendor has spent that amount of money on it doesn't mean that they've added that much in extra value. Some things you don't get your money back on.
I could spend 20k on a state of the art kitchen, but because I live in a low rent area I'd never get anyone to fork out that much extra to live in my street. Perhaps that's why your valuation has come out lower. Unique doesn't always translate into added value.
What has the vendor spent their 100K on?

Dave&katie

Converting a dilapidated workshop into a 1 bedroom annexe with bathroom and kitchen. A loft conversion to create an extra bedroom and ensuite. A new kitchen with range cooker and a large conservatory. Seems to me that would add value.

martinthebandit

Dave&katie wrote: »

Converting a dilapidated workshop into a 1 bedroom annexe with bathroom and kitchen. A loft conversion to create an extra bedroom and ensuite. A new kitchen with range cooker and a large conservatory. Seems to me that would add value.

Although the mortgage valuer seems to think it adds £40k less than you do, I wonder who's right?

Dave&katie

So what are the options for seller then? If it truly is worth £250,000 then unless she gets a cash buyer willing to pay £290,000 then she will.have to come down on price? Is that right?

martinthebandit

Dave&katie wrote: »

So what are the options for seller then? If it truly is worth £250,000 then unless she gets a cash buyer willing to pay £290,000 then she will.have to come down on price? Is that right?

Yep, unless as previously advised a different valuer gives a higher price.

glentoran99

Dave&katie wrote: »

So what are the options for seller then? If it truly is worth £250,000 then unless she gets a cash buyer willing to pay £290,000 then she will.have to come down on price? Is that right?

martinthebandit wrote: »

Yep, unless as previously advised a different valuer gives a higher price.

Not necessarily, someone could buy it with a 90% mortgage if they have £65000 deposit

Dave&katie

Is it worth going to.a different lender then and paying for a new valuation? Then if that comes back at £250k then the vendor would have no choice but to come down on price? She is committed to selling as she is converting a barn and needs the money to finish it.

martinthebandit

Dave&katie wrote: »

Is it worth going to.a different lender then and paying for a new valuation? Then if that comes back at £250k then the vendor would have no choice but to come down on price? She is committed to selling as she is converting a barn and needs the money to finish it.

I think it would be worth chatting to the vendor about it so that she understands your (and ultimately her) problem and then looking for a second valuation.

Or at least that's what I would do if I really wanted the property.

If it's not a 'forever' house though I would still look elsewhere.

Dave&katie

Thank you.

We think it is our forever house though which makes it harder to give up!