Valuation came back as £0...?

Wacky103

Hi All

Looking for some advice as my broker is on holiday at the moment and unreachable.
I had an application with Nationwide back in March, which had a successful valuation done on, and went to offer at the end of March.

I then got news that my new build is going to be delayed and that Nationwide would only extend the offer for 2 weeks, but this wasn't enough to cover me for the delays.

My broker then spoke to the BDM who suggested waiting until June, cancelling the original offer and starting again with a new application, so that a fresh 6 month offer would then cover me for the delays and potentially some more (if they happen).

The new application was done recently, all documents checked & fine, then it came to the valuation. Nationwide advised they could just transfer over the valuation from my first application to this one, and wouldn't need to do another 1.
I called Nationwide today as I hadn't had any contact from them (the first time around I got lots of email and text updates). I phoned last friday for an update, and was told I would have a decision by close of play today. I just called up, and they have said the valuation has come back as £0, but couldn't tell me what this meant. I explained the above situation about the cancelled app etc and the woman didn't know what to say other than to call back on Thursday.

What reasons could there be for a £0 valuation, considering it is the same valuation done in March, no fresh one has been done, and nothing has changed (to my knowledge anyway!)

Thanks

foxy-stoat

Best speak to them on Thursday as I doubt anyone will know why this property is worthless to them.

MortgageMamma

My guess is that they have already offered other mortgagees
for this new build development and have perhaps decided to limit their risk by not lending any further on this development.

I could be completely wrong but it does sometimes happen on new build off plan purchases.

Wacky103

Thanks both for your responses.
I got a series of texts this morning from Nationwide saying the valuation was received, accepted, and then got another text straight after to say it has gone to offer again.
I think there had been some mix up because they were using the valuation from the first application, but all seems to be fine now. I can stop worrying

JPB123

It's common on New Build applications where the build hasn't been completed for the valuation to show as £0. A number of lenders do this, not just Nationwide.


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amnblog

JPB123 is right here.

TrickyTree83

Is that generally when they request another valuation prior to completion?

I've had my valuation come back on a new build property with the price we'd agreed to pay but they did tell me they might want to perform another inspection prior to the completion. Not sure if this inspection differs from an actual valuation or not either.

amnblog

Yes, they will recheck progress on the build later.