Mortgage valuation Fee

badaz52

Hi everyone,

Back in april we agreed to sell our home and buy a new one, we used the mortgage advisor as recommended to us by the builder and everything went OK, mortgage was arranged in record time, valuation fee paid and then yes we lost our buyer so could not proceed. The valuation fee of course was not refunded and as the lender is halifax they do have a valuation fee promise to refund the 1st valuation fee if you go on to purchase another property, the 1st fee would be refunded on completion.

While this seems OK it is very unclear as to what happens the 3rd/4th/5th time as as in England nothing is legally binding until EOC it seems premature that lenders are asking for this so early in proceedings, it will just result in people being left constantly out of pocket as any prospective buyers are free to change their mind anytime they like without having to pay any compensation.

We have now found another buyer and are proceeding with the same new home as before just a different plot number therefore all house details are the same as before (price, development, house type, amount to be borrowed) but the halifax are yet again asking for another valuation fee as the plot number (address) has changed. I have asked the mortgage advisor to speak to the halifax to illustrate some common sense and get the requirement to pay a 2nd fee waived but they seem to be reluctant and keep insisting that I have to pay.

I have banked with the Halifax for 15 years and already have a mortgage with them so would like to speak to them directly about this but I'm not sure who I would contact.

Has anyone had a similar experience to this and what was the outcome?

Thrugelmir

Lenders use external surveyors. So what you are charged is what the surveyor gets paid. Why should lenders pick up the cost ?

badaz52

Thrugelmir wrote: »

Lenders use external surveyors. So what you are charged is what the surveyor gets paid. Why should lenders pick up the cost ?

Simple. Common Sense. I have already paid them once for a valuation report on the same house type that I want to buy today, on the same development. It is a new build so they are all the same. I should point out that it is only level 1 so that is just a brief report of the house and where it is. It is not fully built yet.

I'm not saying the lender should pick up the cost at all what I am saying is the external surveyor has reported back to the halifax last time that the house was suitable to have the amount of money requested borrowed against it and surely the halifax should be able to secure the loan against the new plot number without having to reinstruct the external surveyor who lets face it probably never goes out to site anyway.

David_White

I can see where you're coming from and unfortunately have been burnt myself by people pulling out of a house sale.

The issue for Halifax is that whilst on face value it's just a change in plot number, without actually having a surveyor go down there and check the paperwork etc for all they know the original plot was perfect whereas the new one could have an issue.

Imagine if in 10 years time the house collapses as it was built on a sink hole and when the Halifax auditors check the original paperwork they'd not checked the property only the one next door. It's a risk Halifax don't need to take.

Granted It doesn't feel fair that you have to pay subsequent valuation fees when it's not your fault but sadly unless Halifax are feeling particularly generous you'll need to pay it.

Lastly, if you've gone through a broker I would strongly suggest not contacting the lender directly.

David_White

badaz52 wrote: »

It is a new build so they are all the same.

I live in a newly built terraced house.

On paper you would think they'd be identical however you'd be surprised when talking to your neighbours about how two identical properties could have very different build issues.

badaz52

David_White wrote: »

I can see where you're coming from and unfortunately have been burnt myself by people pulling out of a house sale.

The issue for Halifax is that whilst on face value it's just a change in plot number, without actually having a surveyor go down there and check the paperwork etc for all they know the original plot was perfect whereas the new one could have an issue.

Imagine if in 10 years time the house collapses as it was built on a sink hole and when the Halifax auditors check the original paperwork they'd not checked the property only the one next door. It's a risk Halifax don't need to take.

Granted It doesn't feel fair that you have to pay subsequent valuation fees when it's not your fault but sadly unless Halifax are feeling particularly generous you'll need to pay it.

Lastly, if you've gone through a broker I would strongly suggest not contacting the lender directly.

I see what you are saying although I do think the Halifax only carry out a level 1 brief report which to my knowledge does not involve going out to site anyway but I could be wrong.

How long could I leave the payment of this valuation fee do you think? I was thinking of perhaps waiting until contracts are ready to be exchanged and doing it a week or so before which might provide a bit more of a guarantee that everything will go through. I mean we only reserved the new build last week and the valuation fee is being requested already!

davidmcn

badaz52 wrote: »

I see what you are saying although I do think the Halifax only carry out a level 1 brief report which to my knowledge does not involve going out to site anyway but I could be wrong.

You are wrong. I've never encountered a valuation for a purchase which didn't include a visit to (and inside) the property. Obviously different if you're buying something off-plan. "Drive-by" or desktop valuations tend to be reserved for remortgages and suchlike.

Anyway, the lender can't rely on a valuation which isn't of the correct property - how could they even start to sue the surveyor for negligence?

ACG

They're not all the same and the survey was not done at the same time. Between the original survey and the new one, plans might have been submitted to build a nuclear reactor in your back garden.

Also the original property may have had a back garden with the sun on it all day and the new one may have the sun at the tip of the garden for 10 minutes at 9am and this is something I have experience of with a client, drain access. On the original plans there was no drain access on my clients garden. Further down the line that was added and meant my clients could not build the extension they had planned on building and so pulled out.