Nationwide mortgage valuation on our home.. Worried!

melissa1709

Hi everyone!

I'm new to this site but read some previous posts which were helpful so thought I'd do my own post to see if anyone had any useful advice!

My partner and I FINALLY had an offer (asking price) on our home! It was a long time coming. The offer was from a friend of my mothers. We couldn't really take below asking price due to stupidly purchasing our home through the 'First Buy' (now help to buy) I believe. When you sell, you have to pay 20% of the sale price back to the government to pay off your equity loan.

Anyway, we got the offer we wanted, everything has gone well so far. Both us and our buyer got our DIP and we reserved our dream home (new build so no chain, and our buyers are first time buyers so no chain there either) mortgage applications processed and then got a call from Nationwide today to book valuation for this Friday on our home.. I knew this was coming so don't know why I'm so scared.

My issue is, if they down value our home there's not a thing we can do due to the government loan taking such a big chunk of our sale money. The rest we will make is tied up in deposit and fees. Now I very much believe our house is worth what we've been offered, however a neighbour 2 doors down from us did a part ex back in February and sold for 20k less than us! Thinking this might shoot us in the foot.. I've tried looking for comparables online but not had much luck finding anything similar.

Does anyone have any experience in this sort of situation? Will the surveyor be able to see our neighbours was a part ex and therefore take in to consideration the cheaper sale price? Any responses are greatly appreciated!!

Don't know if it's worth mentioning we live in a small town in County Durham. Most houses are old (ours is only 5 years old), and have sold for extremely cheap! (30-60k)

hammy1988

I thought the help to buy equity loan scheme is 20%? Regardless of whether your property increases or decreases in value? If it has decreased in value, then you will pay less than you borrowed. It's a stake in your house they purchase, the other equity over that 20% that you have earned is yours e.g anything left over from mortgage settlement.

melissa1709

Hi hammy,

Thanks for your reply. You are right, it is 20% regardless of increase/decrease in price.

I might not have been clear in my original post, my worry is for the mortgage valuation from my buyers lender down valuing and therefore not lending them the funds needed for the mortgage - we have no room to reduce our price (due to most of our equity going back to Help to Buy and the rest being tied up with deposit and fees). So we will lose the sale if their lender down values.

kinger101

When did you buy it? Has it increased in value? Why don't you have any of your own equity in the property?

All rather moot anyway. If it's downvalued, I suspect the buyer won't want to make up the shortfall, or go to the effort of trying to find another lender on the slim chance they won't do the same.

You'll just have to wait and see what happens I'm afraid.

hammy1988

Ah yes, I get you, sorry, Well you'll have to just wait and see. One thing I've learnt when purchasing and selling houses, don't set your heart on things. It's sad but true

Go with the flow, tell yourself you'll come to a decision either way if it goes the way you want or not. Sometimes a buyer can pull out, but another one may or may not be waiting just around the corner. The perils of selling!

Pixie5740

Why worry about something that hasn't happened yet and that you have no control over?

Crashy_Time

The sooner HTB is wound up the better.

Tiners

As others have already said the equity loan is a fixed percentage of your sale price regardless of whether the properties value has gone up or down so you're effectively no worse or better off than you were before you bought the property... your issue seems to be that you're possibly not able to sell for a huge 'profit' over what you paid for it, such is life I'm afraid, all houses don't always and automatically go up in value despite what most of the property market rampers would have you believe.

Crashy_Time

http://www.express.co.uk/news/world/819711/House-price-sale-drop-slump-zones-Property-Cost-Stamp-Duty-latest-news


It`s like they have these prepared little headlines for when the inevitable happens, and someone slips up....... the media is like a child bursting to tell teacher what really happened :rotfl: Glad I`m not shackled to a big mortgage debt in this climate.

toc25

I've been worrying about the same thing, what I have learnt is that it really is daft to worry about things that haven't happened yet. I was worried about the mortgage valuation for the house we are buying to be too low and the vendor not wanting to budge. That didn't happen. Then I was worrying about the survey on our house and I've not heard anything and it was a week a go so I'm presuming that I have been worrying for nothing.

These things happen and it's very stressful but try not to over think and make your self ill like I have because it won't change anything.

Good luck

sheff6107

"Glad I`m not shackled to a big mortgage debt in this climate"

What, with the lowest rates on record? People are falling over themselves to remortgage. It's one reason your crash hasn't happened - there aren't enough houses going on the market, holding up prices because everyone is staying put.