New build valued at less than asking price

kilby_007

Although I'm sorry for your situation, I'm glad that the banks are starting to see over the top of the bubble and placing more sensible values on properties rather than just matching the offer price and validating the crazy house price inflation we've been seeing of late. You should be glad that they're protecting you from negative equity territory.

always_sunny

hello_petal wrote: »

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...

I would be going nuts if I were in your shoes!!!
You're at the mercy of the bank and the gap in price is a good warning bell, I would defo not offer more even if the bank changes their mind.

hello_petal

Update...

Barratt appealed the undervaluation as they have evidence of the same house type being valued at asking price with other lenders. This is the first undervaluation to occur on the site in 3 years. Barratt claim that the Colleys surveyor did not conduct a fair market comparison and looked at second hand market only, failing to include recent sales from the development.

Despite providing evidence to back this up, the appeal was unsuccessful. Both my solicitor and mortgage adviser are baffled as to why the house has been undervalued - the development is active, selling well and prices have risen on the site, not dropped.

So my only option now is to try another lender which may be a challenge due to the nature of my job. I'm out of pocket for the valuation and could potentially lose the house if I can't secure a new mortgage offer.

Surely if nobody else is undervaluing on the site then it's pretty clear something is wrong? Is there a platform for me to make a complaint re the survey or would I be wasting my time?

amylou1107

We found this when purchasing (not a new build though).
The first mortgage lender we went with down valued by £20K (£300k, we had offered £320k)
We decided to get a valuation from a different lender. Their valuation came back at what we had offered.
Worth a try is the developers wont budge and you can fund the difference.
Good Luck!

kingstreet

hello_petal wrote: »

Is there a platform for me to make a complaint re the survey or would I be wasting my time?

As this was presumably a mortgage report & valuation and not a survey, the contract was between the lender and surveyor and not you and the surveyor, so no, you don't.

I would expect the builder to refund the cost of another valuation in these circumstances though.

Crashy_Time

http://www.dailymail.co.uk/wires/reuters/article-3941130/Barratt-cuts-price-expensive-London-homes.html

hello_petal

So, I applied for a new mortgage with Leeds BS. They instructed a new valuation which has come back at asking price.

Not sure why Halifax/Colley's undervalued the property initially. No other houses on the development have been surveyed under the asking price so perhaps I was just unlucky.

Just waiting for final mortgage offer with Leeds (undergoing final checks) and hopefully it's all good...

Chanes

hello_petal wrote: »

So, I applied for a new mortgage with Leeds BS. They instructed a new valuation which has come back at asking price.

Not sure why Halifax/Colley's undervalued the property initially. No other houses on the development have been surveyed under the asking price so perhaps I was just unlucky.

Just waiting for final mortgage offer with Leeds (undergoing final checks) and hopefully it's all good...

Good for you, I hope you have a brilliant time living there, you seemed to have earned it!