First Time S/O Buyer with a Valuation Question

Short-n-Sweet

Hey,

I have recently been accepted for a 40% Shared Ownership property from the Housing Association I currently rent a flat from. There is a point in the recent email which I don't understand and wondered if anybody could shed some light on it?

Before I give them a ring tomorrow.
" Another point to note is that with new build properties we are required to have a valuation completed every three months, if there are any changes we will be in touch straight away to discuss the best way forward. If any change in valuation affects your affordability in the way that you can no longer proceed, we will refund the reservation fee. This very rarely happens. "

Why would a valuation need to be completed every 3 months and for how long. Who is expect to pay for the valuation each time? :rotfl: I am totally clueless. Has anyone experienced this.

davidmcn

Not something I've encountered before, but my best guess - if the period between your application and completion of the purchase lasts longer than 3 months, they need to check that the value hasn't gone up in the meantime (and if values have shot up they'll presumably want to increase the price). Their valuation so their expense.

Short-n-Sweet

Thanks for the reply. That makes more sense than what my brain was trying to come up with! It was the wording which states every 3 months that really confused me, who would want or need a valuation that often.

Lioness_Twinkletoes

The valuation will only be until your sale is completed. It's fairly standard as the value of new builds increases exponentially. The cost of the valuations will be met by the RP.