House down valued.

chamelious

We put in an offer of 96k on a house on the market for 100k which was accepted, it'll be our first house.

The mortgage valuation has taken place, and they're saying its only worth 90k.

As i understand it, our options are to find the extra £5-6k ourselves (no), or offer the vendors the 90k, which i assume they'll say no to.

In addition, apparantly the home buyers survey has uncovered some problems with damp, we're awaiting the arrival of that to see the full extent.

Can anyone offer any advice? Is it appropriate to apprise our soliciter in charger of conveyancing and ask them for advice?

Thanks

kingstreet

Is it £90k in current condition?

Is there a request for reports and estimates for essential repairs?

Is there a valuation estimate after essential repairs?

chamelious

Thanks, good questions, suspect most will be answered when the report arrives which will hopefully be today.

exiled_red

Are you asking for a 100% mortgage? As you seem to be saying no to paying the £5-6k yourselves, The mortgage company only want to make sure the house is worth more than they are lending you so that they can get their money back if you can't pay the mortgage. If the house is worth £90k and you are only borrowing £75k but pay £96k to buy it they don't usually mind, but if you want to borrow £96k to buy a house valued at £90k they won't lend you the money

kingstreet

I suspect this is more than likely a surveyor "guess" at what might be wrong with a property and "guesstimate" at what it will cost to out right.

Over the years, I've had dozens of cases where the reports showed nothing needed and the surveyor returned the value to the agreed price once he had them.

The valuation isn't always the be all and end all if reports & estimates are requested. They are an opportunity to demonstrate the property is better than the surveyor's 15 minute inspection suggested.

For example, moisture meter stuck against wall = high moisture reading = failed damp course - surveyor's £2,000 estimate to put right.

Specialist report. Moisture reading due to soil bridging damp course. Remedy is reduce soil level by digging French drain, cost £50.

Electrical report "electrics not up to current standard = rewire = £4,000." Specialist report = new consumer unit required, cost £120.

Surveyors are not specialists, they are GPs and refer you to a Consultant, but for some reason think making a diagnosis themselves is helpful...

Thrugelmir

kingstreet wrote: »

Surveyors are not specialists, they are GPs and refer you to a Consultant, but for some reason think making a diagnosis themselves is helpful...

The valuation is prepared for the lender not the borrower. Surveyors role is to simply flag issues which potentially may impact the lenders security. As you aware Kingstreet. Professional Indemnity Insurance isn't particularly cheap.

kingstreet

Frankly, I prefer it when a surveyor won't value a property until he has the reports and estimates in hand.