Mortgage down valued by £65k!!!

AnotherJoe

lanceyp88 wrote: »

The vendors brought the property off a family friend for £135k in Oct 15 and have renovated it throughout and added a utility room.

I'm sure for the price they are charging for a utility room you could pay someone to wash and iron and do the dishes for the rest of your lifetime

banks4u

Don't buy it, as I said in another thread you will be in negative equity if the valuers comments are correct. Reduce asking price!!

lanceyp88

I have spoken to Skitts estate agents regarding the previous sale of the property it was put on for £180k initially but vendors were desperate to sell and needed money. It was eventually reduced to £150k to increase interest in the property. It did not sell through them and was widthdrawn when sold for £135k cash to current owners

It was valued at 180k due to work that needed doing. That was in Oct 2015 and the work has now been completed.

TrickyTree83

I thought it worked that regardless of the previous valuations, whatever it sold for is then the current market value of that property. So taking that new market valuation and adding to it with renovation and a small extension would not get it back up to the current asking price which is closer to the valuation of £180k. If that is the case then the £50k - £60k drop from the valuation you have had done sounds pretty much on the button and that it's the vendors/EA who are incorrect in their appraisal?

banks4u

I agree with Tricky also agents always try to increase the value of the property. I would believe the valuer more than agents.

JimmyTheWig

lanceyp88 wrote: »

It was eventually reduced to £150k to increase interest in the property. It did not sell through them

It didn't sell at £150k.
So a year ago, it wasn't worth £150k. If it was, it would have sold.
They've done some work to it and now it is worth £150k.
Sounds reasonable.

lanceyp88

If you guys wanna check out the property and it's Musk Lane Lower Gornal, I personally don't see it as a £150k house when we have sold our 3 bed semi for 200k with less square meters.
I know I am biased as I'm trying to purchase the property but would like your opinions

JimmyTheWig

lanceyp88 wrote: »

I personally don't see it as a £150k house

The thing is, it doesn't matter what we think it is worth.
In terms of the mortgage valuation, it doesn't matter what you think it's worth.
It matters what the valuation comes back as. And that's come back as £150k.

Now, there's two scenarios...
1. They've done something wrong. Maybe valued the wrong house. Maybe sent you the details from a different house. Maybe they've used the last selling price as a starting point when that was an unrealistic price.
2. That's what the surveyor honestly believes it is worth.

Good plan to come on here and ask for our thoughts. Unfortunately, from people's comments on here it isn't sounding like scenario 1.
Which means it is scenario 2.

Which gives you 4 options...
1. Accept that the mortgage will be based on the lower valuation and increase the deposit you are putting towards it. (I accept this may not be possible).
2. Renegotiate the price with the vendor.
3. A combination of the above.
4. Walk away.

lanceyp88

Santander have instructed a different company and they will be going out the property hopefully early next week. Be interesting to see what they say. Keep you posted

Lungboy

This one?

And the older listing