Down-valuation advice needed!

thatadamwalker

Hi all,

I'm a first-time buyer and the property I've had an offer accepted on has been downvalued by the lenders by a whopping £14k from an agreed £124k down to £110k.

I received the news about this last week and understandable the vendor of the house is furious about this and the estate agents are chasing me frequently for updates.

Like most people I don't have a spare £14k laying around so unless either the lender allows a second-opinion on this (indications are that very little reason has been given to justify this defecit), I win the lottery or we can find a new lender it's back to the drawing board for me.

The mortgage brokers I used whilst not telling me much have stated they are doing all they can about this and have advised that "comparables" of similar properties on the same street which have sold for a similar or greater value have been passed on to them.

However day after day passes and I'm none the wiser of what's happening.

I'd like to ask if anyone has advice on the following:

• anyone has been in this situation and can offer advice?
• If there is any level of appeal involved and what the process might be and if there's anything I can do to help push things along?
• Where I stand financially if I need to pull out of the purchase (as I've paid out over £600 in mortgage application and legal fees so far)
• If there's anything to keep in mind when applying to another lender if that becomes a necessity?

I kind of feel like I'm in mortgage Limbo at the moment and unsure where I stand. The estate agents acting for the seller are either pressuring me for updates too frequently and are very doom and gloom about it, my solicitor doesn't seem to think this will be an issue and the mortgage brokers don't seem to be saying much at all so if anyone can set me straight on this matter that would help!

Adam

AnotherJoe

thatadamwalker wrote: »

• anyone has been in this situation and can offer advice? Lots of people have been in this situation. You can appeal (see below) or come to an agreement with seller or walk.
• If there is any level of appeal involved and what the process might be and if there's anything I can do to help push things along? Ask your broker. Thats what you are paying them for! Often you can appeal. There have been examples posted here of successful appeals. But not all. This does appear to be massive so maybe its a simple mistake.
• Where I stand financially if I need to pull out of the purchase (as I've paid out over £600 in mortgage application and legal fees so far). You've probably lost £600
• If there's anything to keep in mind when applying to another lender if that becomes a necessity? Ask your broker? Some lenders share valuation firms so there will be no point using one of those shoudl you lose the appeal.

Adam

Hope this helps.

thatadamwalker

Cheers for the quick reply!

Lots of people have been in this situation. You can appeal (see below) or come to an agreement with seller or walk.

Did you mean to link me to an article there?

The broker is being a little elusive so when it comes to getting hold of them on the phone so I might drop them an email asking such questions requesting a breakdown of what they're doing for me.

The level of the deficit did make me think that this could be a clerical error so I hope that's the case.

We're also aware of the name of the company used for valuation so we can at least avoid them if we need to look at alternate lenders.

Adam

millie1985

I was in the same situation buying a new build - Natwest instructed E-Serv who downvalued by £40k...! I tried to appeal but at the end of the day, it was a complete waste of time and went nowhere - they said even if they were to instruct another valuer, they would have to be prudent and go with the lower valuation.


I ended up completing another application with Santander, who then also instructed E-Serv!!! But, my broker was able to work his magic and managed to persuade them to instruct Countrywide - their valuation came back on Friday in line with asking and apparently my mortgage offer is in the post! Santander also do free valuations and have a better rate so actually, a win (although it didn't feel like it during the extra 3 weeks).


So my advice would be find out which firm did the survey and ask your broker / on here which lenders don't use them! Although...apparently lots of the surveyors are freelance so work for multiple firms so your vendor will need to be on board to make sure you don't get the same person out.

AnotherJoe

thatadamwalker wrote: »

Did you mean to link me to an article there?

No sorry, I just meant the further text I wrote about making an appeal.

thatadamwalker wrote: »

The broker is being a little elusive so when it comes to getting hold of them on the phone so I might drop them an email asking such questions requesting a breakdown of what they're doing for me.

If someone is being evasive, email is an excellent way of them being even more evasive. Phone them.

thatadamwalker

Thanks for the advice Millie and wish me luck!

Thrugelmir

thatadamwalker wrote: »

Hi all,

I'm a first-time buyer and the property I've had an offer accepted on has been downvalued by the lenders by a whopping £14k from an agreed £124k down to £110k.

First question is why? Have you received a copy of the lenders valuation report.

tiger_eyes

I successfully appealed a down valuation last year. It was downvalued by around £10k. The mortgage broker sent me the appeal paperwork and I got the seller's estate agent to fill it out with evidence from sales of identical flats in the same block. FYI, looking at my emails, the whole process from down valuation to appeal success took just over a month.

thatadamwalker

Hi all,

I've had some feedback on this.

The valuers (Connel's) could only state that the property is too close to train tracks and a near by river. The property certainly isn't at risk of flooding and is also 3 streets away from the train track. Sheffield has LOTS of train tracks and rivers! My mortgage broker tells me the same individual has done the same with another client of his based on very little given reasoning or evidence to back it up.

Anyway, they refused to overturn their decision even after some very favourable comparables were sent their way so we're going with an alternate lender who thankfully my mortgage broker has direct contact with their valuers (who I know to be a different firm)

I really don't foresee hitting the same issue again with the next lender (Halifax, used Principality previously) and even if we did surely it should send a clear message to the seller and their estate agent that the property really isn't quite worth what they believe it to be and maybe that could facilitate some negotiation?

Take care all and thanks for your replies!

Adam

AnotherJoe

Good luck adam.

banks4u

Don't buy, I guarantee in 2 years time you will be in negative equity. There is a reason the valuer downgraded.

I say negotiate lower with the buyer, if they say no tell hen your pulling out. If they want another valuation they should pay for it.