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New build valued at less than asking price
Comments
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kingstreet wrote: »Only where the LTV is 80% or less.
Incentives are restricted as I noted above where the LTV is higher. For example, at 90% no incentives are permitted and they will be deducted from the valuation.
This was not made clear to me by my Halifax mortgage advisor. I specifically asked at the time of application whether the flooring would have any impact. He said he could not foresee any issues as it was not deemed as a 'cash' incentive. He said it would only be a concern if I had been offered free stamp duty, deposit boost etc.0 -
I was answering TBeckett.hello_petal wrote: »This was not made clear to me by my Halifax mortgage advisor. I specifically asked at the time of application whether the flooring would have any impact. He said he could not foresee any issues as it was not deemed as a 'cash' incentive. He said it would only be a concern if I had been offered free stamp duty, deposit boost etc.
The post is not directly related to your thread, but may be relevant to future readers.
Yes, the difference is between cash and non-cash incentives.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
hello_petal wrote: »Thanks everyone. I don't want to lose the house but I have to accept that's a possibility
Better to lose an overvalued house than being in negative equity... if you were to sell in the future it'll also be valued accordingly. Hopefully you have not put down a non-refundable holding deposit!
When I went to see few new build they all seemed to ask for this non-refundable reservation fee which made me very unconformable for the same reason.EU expat working in London0 -
always_sunny wrote: »Better to lose an overvalued house than being in negative equity... if you were to sell in the future it'll also be valued accordingly. Hopefully you have not put down a non-refundable holding deposit!
When I went to see few new build they all seemed to ask for this non-refundable reservation fee which made me very unconformable for the same reason.
I paid a reservation fee but it's fully refundable up until the point of signing of missives.0 -
I've spoken to the site sales rep. She has escalated to head office who are dealing with the situation. I believe they are going to request a second opinion as this is the only undervaluation they've had on the site to date. I should have more information later this afternoon.0
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Still doesn't explain the £8,995 undervaluation.
Without being too blunt, the only way of explaining it is that Barratt have over-valued the price of the house, either accidentally or intentionally.0 -
PersianCatLady wrote: »Still doesn't explain the £8,995 undervaluation.
Without being too blunt, the only way of explaining it is that Barratt have over-valued the price of the house, either accidentally or intentionally.
If every other house on the site has been valued at the asking price, then it would suggest a dodgy valuation. I'd be requesting another by a surveyor who has good knowledge of the area.0 -
Barratt may have recently increased their prices, with other houses of the same design having been previously valued at the earlier price.
When my son showed me his recently completed on Barratt house, I pointed out that the price on a large banner, attached high up on the house wall, was lower than his agreed price ( It had obviously been increased after the house was built ), so suggested he query this.
He was told that there had been a general price increase and that someone had forgotten to remove the old banner, but obviously the lenders must have agreed to the new price.0 -
It would suggest a dodgy valuation OR Barratt may have recently increased their prices
Whichever it certainly needs to be sorted out before you pay the agreed price.0 -
Still no resolution as yet. I'm stuck in the middle between Barratt and the bank.
Barratt are in the process of appealing the surveyor's valuation with the bank and have provided evidence of recent valuations for same house type at asking price via other lenders. Awaiting appeal decision.
Should hear more by the end of the week. Meanwhile I wait...0
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