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Our buyers lender has revalued and reduced their loan amount - help!
vorneus
Posts: 4 Newbie
Hi all,
I am in the process of selling a leasehold property that has an ongoing tribunal for a water ingress problem on the upper floors of certain blocks. My property is not affected by it, but part of the cost of work to repair the problem is expected to come from the service charge.
To mitigate risk for the buyer, we have agreed a retention.
This all was proceeding smoothly, but now their lender (Halifax) has revalued the flat and due to the ongoing tribunal affecting the building as a whole (despite our property not being a part of the problem / remedial work planned) has reduced their valuation by £9,500.
Consequently, our buyer (who has a 5% deposit) is not able to afford the property at the sale price and is looking into their options for how to proceed.
Can anyone offer any advice for me in this situation? Is there anything I could do or suggest?
Thanks,
-Ed
I am in the process of selling a leasehold property that has an ongoing tribunal for a water ingress problem on the upper floors of certain blocks. My property is not affected by it, but part of the cost of work to repair the problem is expected to come from the service charge.
To mitigate risk for the buyer, we have agreed a retention.
This all was proceeding smoothly, but now their lender (Halifax) has revalued the flat and due to the ongoing tribunal affecting the building as a whole (despite our property not being a part of the problem / remedial work planned) has reduced their valuation by £9,500.
Consequently, our buyer (who has a 5% deposit) is not able to afford the property at the sale price and is looking into their options for how to proceed.
Can anyone offer any advice for me in this situation? Is there anything I could do or suggest?
Thanks,
-Ed
0
Comments
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Drop either the price or the buyer0
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Dropping the price would probably be the most sensible thing to drop.0
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With the buyer only having a 5% deposit, they're unlikely to be able to take any significant hit themselves, which means they'll likely only be able to proceed if you drop the price by ~£9K. Entirely up to you whether you take that hit or remarket, but I expect you'll want to be primarily guided by whether you/your EA think you can achieve the original price despite these issues.0
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Or the buyer can try another lender/surveyor.I am a Mortgage AdviserYou 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.0
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Depends on your stance. I have had 2 this year that have been downvalued by one surveyor and valued at the agreed price by another.Crashy_Time wrote: »Or they can walk away and find another cheaper property, drop the price now before they do IMO.I am a Mortgage AdviserYou 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.0 -
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It depends on what the percentage drop and how much you need the money now as opposed to in a few months.0
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Drop the price but remove the retention. They can't have their cake and eat it.0
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