House under valued by mortgage lender

Dave&katie

martinthebandit wrote: »

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

glentoran99 wrote: »

Shes not overvaluing though if both you and another person are willing to pay whats shes asking

Again, I see what you're saying but she's obviously over valuing it on what the mortgage company are willing to lend on, and that's all that really matters in our eyes, as although WE value it at £290k we can't afford to make up the difference if the LENDER only values at £250k.

breaking_free

I agree with the others that it's probably a ceiling price problem, especially as you describe the property as "unique" and that the vendor "has spent £100,000 on it".

I'm doing my place up at the moment and am sooooo tempted to overspend on the bathroom, but I know that I would never get this money back when I came to sell. Why? Because every flat on my estate has a set price range. Currently 2 bedroom properties on my estate sell for around £265,000. Let's say I splash out £100,000 to add the most luxurious kitchen, bathroom, underfloor heating, gold door handles, etc. At sale time I'm still not going to achieve a sale price of much more than the set price range because, *cough* the price range is set.

With a pinch of good fortune the vendor may have to take a loss and you could be quids in.

kingstreet

There are several lenders offering free basic mortgage report & valuations, so you won't necessarily have to pay for another.

Be mindful there are few corporate surveyors, so get advice from a mortgage broker which lenders to avoid. You don't want to end up choosing a new lender, making a new application and getting the same surveyor!

glentoran99

Dave&katie wrote: »

We can only pay what the mortgage companies will lend us though.

I think another valuation would make her reconsider, unless there is a cash buyer who is willing to pay that much she will need to reconsider her price. Also if we had another valuation that valued it higher then we would consider another lender.

Yeah you can, and as pointed out before, she doesn't need a cash buyer, just someone with a larger deposit than you, maybe the underbidder does?

Dave&katie

glentoran99 wrote: »

Yeah you can, and as pointed out before, she doesn't need a cash buyer, just someone with a larger deposit than you, maybe the underbidder does?

We may have enough to pay the extra, so might someone else, however we wouldn't want to pay the extra as when it comes to remortgage at the end of our fixed rate we wouldn't see that extra money back would we?

To me it seems like a hell of a risk to pay £40k over a valuation price even on what we think will be our forever home.

Slave_to_the_job

Dave&katie wrote: »

We may have enough to pay the extra, so might someone else, however we wouldn't want to pay the extra as when it comes to remortgage at the end of our fixed rate we wouldn't see that extra money back would we?

To me it seems like a hell of a risk to pay £40k over a valuation price even on what we think will be our forever home.

Best to walk away now then... You too valued it at 40k over the mortgage valuer don't forget....

Tino2385

We are in the exact same boat as you, we got an offer and mortgage accepted at £295k but the valuation has come back at £260k we put down a 100k deposit and can't put anymore in, and the vendor had a cash buyer offering 5k less.

We're waiting on our broker to do some calculations and see what we can do in regards to other products or rates but we're already stretching ourselves. If he can't do anything affordable for us then we're going to try another main lender who we know use a differant surveyor.

Ours like yours is a character property all other houses around are semi's ours is detached with 3-4 times as much land as any others and us a life long house for us, but we were given the same reasons as you.

Good luck and let us know how it goes

Ozzuk

Minor thought (and you may already be aware), you mentioned an annex with a kitchen - you might want to look into that as you could be liable for 2 sets of council tax bills.

pretamang

I was in the exact same position recently. The mortgage valuation came in £70k lower than selling price, the seller refused to negotiate until we had a second valuation to consider, saying that it was clearly a mistake or an incompetent surveyor.

We switched to a different lender (had to pay another £600 valuation fee :mad:) and this one agreed with the full sale price so after a lot of stressing it ended up being worth it and we are now about to exchange.

We thought about getting our own, cheaper, second survey done for the purpose of negotiating the price down, but our broker put us off this idea as it would be no help if had it come back higher than the first survey or at the full selling price.

Another option was to pay for the first lender to send a different surveyor out, but they said that even it did come back higher they may still choose the lower value or go somewhere in the middle.

rtho782

Could look at, say, nationwide, who do free valuations with their mortgages. Could cost you nothing for an application and 2nd valuation. You might get lucky.