Right to Acquire Valuation alot more than expected!

lilsweetie

Hi all

Wonder if you could give me advice....
we put an application in December for Right To Acquire which has just come back valuing the property at £97,000 with a discount of £8000.

To say we are shocked is an understatement, it is in dire need of a lot of work doing, new boiler, walls crumbling, kitchen absolutely on its knees, we replaced the bath etc etc. I have seen them sell propertys on rightmove for £69,950 usually.

Someone we know on the next street bought their house last year for £24,000 less than they have valued ours at, and the house is extremely similar, same size and number of bedrooms, same amount of rooms, just our kitchen is slightly bigger.

I have emailed the lady, expressing how disappointed I was to see how much as unfortunately this price is not do-able for our circumstances (mortgage wise) and was told we could have it re valued if we wish but that price would be final, she also said houses have sold for £110,000 round here but the only ones I have seen are privately owned ones that have had a lot of improvement done by the owners....
now I'm not sure what to do, has anyone been through this? does the second valuation tend to be higher? absolutely heartbroke as this is our dream house in every sense of the word but due to personal circumstances with my child I cannot return to work full time at the mo and that size mortgage even with our deposit of £15 k is not achievable.

Anyone? xx

Thanks

da_rule

The final valuation will be conducted by the District Valuer and is unlikely to be much different. You do have to be mindful that it could be higher as well as lower.

The people who bought the property in the other street may have a preserved right to buy, rather than the right to acquire, which gives them a much greater discount.

Cakeguts

As you can't go back to work you have probably had a lucky escape. You are unlikely to lose your home if neither of you are working at the moment. If you buy the house and are both unable to work you could become homeless. Owning a house means that you can't get housing benefit if you don't have an income. The most you can get is to have the interest on the mortgage paid and that doesn't go on for long.

Cheeky_Monkey

lilsweetie wrote: »

Hi all

Wonder if you could give me advice....
we put an application in December for Right To Acquire which has just come back valuing the property at £97,000 with a discount of £8000.

To say we are shocked is an understatement, it is in dire need of a lot of work doing, new boiler, walls crumbling, kitchen absolutely on its knees, we replaced the bath etc etc. I have seen them sell propertys on rightmove for £69,950 usually.

Someone we know on the next street bought their house last year for £24,000 less than they have valued ours at, and the house is extremely similar, same size and number of bedrooms, same amount of rooms, just our kitchen is slightly bigger.

I have emailed the lady, expressing how disappointed I was to see how much as unfortunately this price is not do-able for our circumstances (mortgage wise) and was told we could have it re valued if we wish but that price would be final, she also said houses have sold for £110,000 round here but the only ones I have seen are privately owned ones that have had a lot of improvement done by the owners....
now I'm not sure what to do, has anyone been through this? does the second valuation tend to be higher? absolutely heartbroke as this is our dream house in every sense of the word but due to personal circumstances with my child I cannot return to work full time at the mo and that size mortgage even with our deposit of £15 k is not achievable.

Anyone? xx

Thanks

Are you sure?

Grant_Urismo

I'm going to be rather careful here, but I'll tell you my tale...

I'm in a shared ownership house. A few years ago, we thought about selling. The rule is that if we buy or sell, we can only do so at a value given by a RICS valuer. We looked at the housing association's list of recommended valuers, and went for the cheapest. Sadly, he said the house was worth way less than we thought. Not wanting to sell to the housing association for less than we thought the place was worth, we decided not to go ahead.

Discussing this with neighbours, several had had similar experiences. Oddly though, ones who had been trying to 'staircase' by buying more of their shared ownerships had exactly the opposite result, they had high valuations that would have meant paying the housing association much more than they expected.

Now, I want to be clear that the RICS valuer is the expert, so what he says MUST be right, so it's clearly just pure coincidence that we were all wrong about how much our houses were worth in ways that would benefit the housing association.

It's also obviously also a complete co-incidence that when we tried again this year, the housing association seemed very miffed when we asked for a valuation to sell then told them that we'd changed our minds and were now buying based on that same really low valuation. Obviously the RICS valuer is absolutely fair and independent, so there must be are real genuine reasons why our 4 big bed semi is 15k cheaper than a 3 small bed terrace over the road built at the same time by the same builders, so I'm not at all sure why they might be annoyed!

dalehitchy

Grant_Urismo wrote: »

I'm going to be rather careful here, but I'll tell you my tale...

I'm in a shared ownership house. A few years ago, we thought about selling. The rule is that if we buy or sell, we can only do so at a value given by a RICS valuer. We looked at the housing association's list of recommended valuers, and went for the cheapest. Sadly, he said the house was worth way less than we thought. Not wanting to sell to the housing association for less than we thought the place was worth, we decided not to go ahead.

Discussing this with neighbours, several had had similar experiences. Oddly though, ones who had been trying to 'staircase' by buying more of their shared ownerships had exactly the opposite result, they had high valuations that would have meant paying the housing association much more than they expected.

Now, I want to be clear that the RICS valuer is the expert, so what he says MUST be right, so it's clearly just pure coincidence that we were all wrong about how much our houses were worth in ways that would benefit the housing association.

It's also obviously also a complete co-incidence that when we tried again this year, the housing association seemed very miffed when we asked for a valuation to sell then told them that we'd changed our minds and were now buying based on that same really low valuation. Obviously the RICS valuer is absolutely fair and independent, so there must be are real genuine reasons why our 4 big bed semi is 15k cheaper than a 3 small bed terrace over the road built at the same time by the same builders, so I'm not at all sure why they might be annoyed!

What's stopping you saying you want to sell.... Get a low valuation and then decide to staircase :rotfl:

Edit: ooops didn't read your last paragraph.... You already did that.... Good one lol

[Deleted User]

To the OP. I don't understand why the urgency.., if you can only work part time, surely its better to wait a few years until you are in a better situation and get another valuation? Perhaps even buy a normal house that will be in better condition if the one you are in is so bad?

If its in such bad condition I don't understand why you want to buy. Surely its better to rent such a house and not take it out of social housing stock. Then buy something you like when your situation improves. Presumably someone else would be rather glad of it (me for one, stuck in emergency housing for the next few years lol).

lincroft1710

lilsweetie wrote: »

was told we could have it re valued if we wish but that price would be final

does the second valuation tend to be higher?

Who did the first valuation, the HA or District Valuer? If HA then the DV's re-determination figure is unlikely to be higher but could be the same.

If DV then re-determination will be carried out by a more senior person at DV's office without reference to original DV valuation. Again figure unlikely to be higher.

However there are rare occasions when re-determination figures are higher.