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New Builds & Mortgage Valuations
Ollie_D
Posts: 73 Forumite
Firstly let's just get it out of the way new build prices are over inflated and may in fact decrease in value before they increase.
Right, We are looking to purchase a new build and potentially part-exchanging our property and are currently doing the calculations and trying to get into the 75% LTV bracket.
My question is when it comes to the mortgage companies valuation (which are normally drive-bys at most) for new builds do they tend to take the agreed sale price, do they tend to go lower than this, or maybe even go with the original listed price (If the sale price has been negotiated down).
Getting into the 75% bracket could be tight, but plan to use it as part of the negotiations, and are trying to calculate if we're better getting more for our place, pay less on the new place or getting a decent number of additions to the property. (Clearly all three would be the winner)
I welcome your thoughts...
Right, We are looking to purchase a new build and potentially part-exchanging our property and are currently doing the calculations and trying to get into the 75% LTV bracket.
My question is when it comes to the mortgage companies valuation (which are normally drive-bys at most) for new builds do they tend to take the agreed sale price, do they tend to go lower than this, or maybe even go with the original listed price (If the sale price has been negotiated down).
Getting into the 75% bracket could be tight, but plan to use it as part of the negotiations, and are trying to calculate if we're better getting more for our place, pay less on the new place or getting a decent number of additions to the property. (Clearly all three would be the winner)
I welcome your thoughts...
0
Comments
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Agreed price, or lower.
It won't be valued at the list price.
Mortgage is based on lower of purchase price or valuation for product LTV.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 -
Firstly let's just get it out of the way new build prices are over inflated and may in fact decrease in value before they increase.
Right, We are looking to purchase a new build and potentially part-exchanging our property and are currently doing the calculations and trying to get into the 75% LTV bracket.
My question is when it comes to the mortgage companies valuation (which are normally drive-bys at most) for new builds do they tend to take the agreed sale price, do they tend to go lower than this, or maybe even go with the original listed price (If the sale price has been negotiated down).
Getting into the 75% bracket could be tight, but plan to use it as part of the negotiations, and are trying to calculate if we're better getting more for our place, pay less on the new place or getting a decent number of additions to the property. (Clearly all three would be the winner)
I welcome your thoughts...
Not necessarily true. On the newest estate near me I have a friend who bought a new build last year for £250.000 and he's just put it on the market for £280,000.00. He's had an offer of £272,000.00 already and plenty of people interested.
House price depends on demand, schools amongst other things. It's not as simple as saying its new so it will be worth less or the same in a years time. New build houses go up in value as well and often at a rate equal to the rest of the housing market. Who cares anyway... you don't buy a house to make money when you have a family, etc, you buy it to live in and enjoy.0 -
kingstreet wrote: »Agreed price, or lower.
It won't be valued at the list price.
That's what I suspected, so we'd better off working at getting a better deal on the part ex of our property and geting contribution to the stamp duty rather than house price.
I wasn't aware of that, but I guess it makes sense when thinking about it.kingstreet wrote: »Mortgage is based on lower of purchase price or valuation for product LTV.
To true, I was merely trying to pre-empt any new build negativity that was lurking here.Who cares anyway... you don't buy a house to make money when you have a family, etc, you buy it to live in and enjoy.0 -
Why buy something that you know is going to lose you money? Why not look for a better deal on an "old build"?0
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Crashy_Time wrote: »Why buy something that you know is going to lose you money? Why not look for a better deal on an "old build"?
More energy efficient. Not having to deal with generations of bodged DIY. No woodchip to strip from walls. As with anything there are pros and cons of buying a new build.0 -
Crashy_Time wrote: »Why buy something that you know is going to lose you money? Why not look for a better deal on an "old build"?
All houses increase in value over time. I agree if he/they/she were planning on selling in 2 years it might not be a good idea. But, 10 years time it will have increased.0 -
Crashy_Time wrote: »Why buy something that you know is going to lose you money? Why not look for a better deal on an "old build"?
We have been looking at both new and old, and to be honest the prices don't vary too much where we've been looking.
With the bonus of the new build being, no work will need doing when we move and we can use Part Ex or HTB.
We're buying with the future in mind, so should be happy for years to come, so any short-term price drop will be irrelevant.0 -
Crashy_Time wrote: »Why buy something that you know is going to lose you money? Why not look for a better deal on an "old build"?
Never bought a car I assume?
Houses rarely "lose money" unless sold very soon after purchase. Most people don't buy a house to make money, they buy a home to enjoy living in.0 -
Why is it that the value of oil, gold, courgettes etc. can all go up and down, but houses only up? Genuine question.All houses increase in value over time. I agree if he/they/she were planning on selling in 2 years it might not be a good idea. But, 10 years time it will have increased.0 -
Demand pretty much always outstrips supply in this country?Bob_Bank_Spanker wrote: »Why is it that the value of oil, gold, courgettes etc. can all go up and down, but houses only up? Genuine question.
I'll qualify that by pointing out there are always areas that buck the trend...!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
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