New build valued at less than asking price

hello_petal

I have had confirmation from Halifax valuation that my new house has been valued under the asking price. I reserved on a new build with Barratt with asking price of £213,995.

I emailed Halifax this morning for an update on my mortgage application and they advised the valuation has been completed. Their valuation is £205,000.

I am already using all of my savings to purchase the house (including legals, stamp duty, deposit etc) so I cannot fund the deficit.

What can I do in this situation? I don't want to lose the house but at the same time I don't want to pay over the odds for a house that is not worth the asking price. I've emailed my solicitor and waiting for a response.

Has anyone else been in this situation with a new build? What was the outcome?

I'm really worried.

theartfullodger

It's only worth £205k then.

Go find somewhere else or get the seller to reduce to £205k.

lee111s

Have you informed Barrat? Discussed it with them?

The fact is you can't but it for more than 205k if that's all the lender will lend against and you don't have any more savings.

hello_petal

lee111s wrote: »

Have you informed Barrat? Discussed it with them?

The fact is you can't but it for more than 205k if that's all the lender will lend against and you don't have any more savings.

Not yet - was running it past my solicitor first as he was dealing with Barratt re missives.

googler

lee111s wrote: »

Have you informed Barratt? Discussed it with them?

The fact is you can't buy it for more than 205k if that's all the lender will lend against and you don't have any more savings.

OP, go to Barratt's sales office and tell them the surveyor(s) won't value up to their asking price. (EDIT - see below)

Outline you will only pay up to the valuation price.

Either they accept your £205k or they decline it. End of.

Then you either move in or move on. It's that simple.

googler

hello_petal wrote: »

Not yet - was running it past my solicitor first as he was dealing with Barratt re missives.

In which case, your solicitor outlines to Barratt's solicitor that the house hasn't valued up, and revises your offer accordingly through missives process. Leave it to your solicitor.

Either Barratt accept and move forward at this revised figure and you move in later, or they decline, and you move on elsewhere.

hello_petal

Thanks everyone. I don't want to lose the house but I have to accept that's a possibility

sheff6107

I'd look at it as an opportunity. They're in the weak position of only being able to sell the cash buyers, and you can save yourself 10k.

hello_petal

I've just arrived home to the surveyors report.

One of the paragraphs describes matters affecting value. It mentions that the valuation is based on the site inspection and other information provided.

It also mentions sales incentive of flooring being disclosed on the sale and has been considered as part of the valuation.

I was offered incentive of £3.5k flooring - does this factor in the surveyors valuation? I haven't heard of this before.

marksoton

hello_petal wrote: »

I've just arrived home to the surveyors report.

One of the paragraphs describes matters affecting value. It mentions that the valuation is based on the site inspection and other information provided.

It also mentions sales incentive of flooring being disclosed on the sale and has been considered as part of the valuation.

I was offered incentive of £3.5k flooring - does this factor in the surveyors valuation? I haven't heard of this before.

That still doesn't explain the shortfall. Sounds to me like your lender has done you a favour.

Barratt clearly over value their properties in this location. Take Halifax's back to them. And knock another 5K off.

kingstreet

HTB Equity Loan?

What percentage deposit or LTV?