Nationwide Down Valuation.. Please help !

Newtown

Viewed a property and offered the Full Asking price.

Mortgage approved for Full asking at £170k (2 bed flat) (Property lease has a clause about not subletting the property). The solicitor made nationwide aware of this and they have reduced the offer by £10k.

Now the Nationwide has down valued the property by £10,000 making the mortgage offer at £160,000

Have spoken to the EA and they say the property is worth £170k and seller is not willing to budge on price by even 1penny.

I have asked for the review of the Valuation. (Wondering what are my chances)

We like the property but this valuation thing is bit concerning.

What are general thoughts on undervaluation ?
what are my options ?
What would you do in this scenario ?

[Deleted User]

Newtown wrote: »

what are my options ?

What ARE your options?

Is there another house you'd like?
Can you make up the shortfall?
Are you willing to walk away?
Do you think it's worth the extra?

Thrugelmir

Newtown wrote: »

(Property lease has a clause about not subletting the property). The solicitor made nationwide aware of this and they have reduced the offer by £10k.

That clause is nothing unusual. What else may influenced the revision. Lease length?

Newtown

Thrugelmir wrote: »

That clause is nothing unusual. What else may influenced the revision. Lease length?

It's a share of freehold with 999 year lease.

dlmcr

My thoughts are that we are starting to see a lot of threads about downvaluation lately.
Do you love the property enough to through 10k down the drain for it? Are there other properties in the area that are similar that you could offer for? Is it your forever property ie are you going to sell then you will have to consider that 10k loss will be crystallised.
You should also consider that your vendor will likely have the same problem with other buyers that need a mortgage. If it is a flat that has had mutiple offers then this may not be a problem as it is more likely that one of the offerors will just make up the difference between valuation and purchase price out of their own pocket.
Personally unless it is a forever property and / or you really love it I would a) try to negotatie, which in this case doesn't seem to be working, and then b) threaten to walk away, and then c ) actually walk away

Newtown

My thoughts are that we are starting to see a lot of threads about downvaluation lately.
Do you love the property enough to through 10k down the drain for it? Are there other properties in the area that are similar that you could offer for?[B](Yes plenty : as its in a very fast moving area: Bournemouth)[/B]

Is it your forever property ie are you going to sell then you will have to consider that 10k loss will be crystallised.(I am currently renting and paying more than what my mortgage payment will be so i consider (rent money) down the drain as well. been doing it for years)
You should also consider that your vendor will likely have the same problem with other buyers that need a mortgage.(Not really in Bournemouth property market is very fast unfortunately)

If it is a flat that has had mutiple offers then this may not be a problem as it is more likely that one of the offerors will just make up the difference between valuation and purchase price out of their own pocket. (Unfortunately that appears to be the only solution at present )
Personally unless it is a forever property and / or you really love it I would a) try to negotatie, which in this case doesn't seem to be working, and then b) threaten to walk away, and then c ) actually walk away

Any other suggestions ?