The NEW waiting to exchange thread...

nekr0mantik

Bookgal88 said:

nekr0mantik said:

Bookgal88 said:

nekr0mantik said:

OMG! I will cry!
Halifax got valuation back and this time its 100k under asking! First time it was 50k under and now 100k!
If EA is telling truth and she has 5 comparable property which sold recently then how can this happen as someone must have valued these at the sold prices. 
Waiting for broker to call me and discuss if Appeal is doable or should I walk away.
If I walk then I dont think I can apply for 3rd time to mortgage once I found a new property so may need to wait until 12 months have passed.  

I wouldn't put that much faith in what the EA says. As a former valuer (don't shoot me!), an EA's idea of a comparable and a valuer's idea of a comparable can be two very different things! Also, when the EA says sold, do they mean completed and the figures they claim to achieve have been verified by the Land Registry. It's easy for an EA to claim they've "sold" 5 similar properties, but if they're still going through the conveyancing process then nothing is certain. The other spanner is that other buyers may have also had the same down valuation that you've had, but they've been able willing and able to make up the shortfall. 

I think you said that the flat you're purchasing is in Canary Wharf, and there are a LOT of flats and developments around there. Perhaps the valuer is concerned that if they had to repossess, there could be an oversupply, particularly in a buyer's market? This is a reasonable concern, for both the bank and you. 

Yeah I know EAs are not 100% truthful and thats why I said the comparable property MUST be sold price on land registry and not the price prior to completion. Also Canary Wharf does have a lot of flats yes but its a very wide types you got quite old apartments there which have cladding issues to brand new ones just finished. There are a lot of price reductions there on cladding reasons and one new build has had down valuations due to the view being blocked in the next 3 years if you live in East Side for example. So its not easy to compare which is the issue. Plus this is the first accommodation on the new estate thats on canary wharf owned land and they building a lot of new community like features into area to bring more non workers so area is new as well. Of course it may not work even if they try. 

From what I been reading around down valuations that even though they are common most are within certain degree of each other. So if first was down by say 20k and then second down by 30k then yeah there is probably good reason why both had similar thoughts. But one down by 100k and another by 50k is a bit strange. 

I seen the report from Halifax/E-Serv and it has incorrect information as it states its 0 years old new build and developers add premium which is true but this is 1 year 5 months old and I am buying from investor who trying to make money after purchasing as a contract re assignment. Also the report states building material may prove to be hard to sell but it has EW1S A1 Pass and the solistors found nothing to say there is something wrong with the material. On top they said in current condition and it needs work cos of wear but no one has lived there. The owner is in a different country and never rented it or occupied it. So where would the wear come from and no amount of wear from 1 year would mean its worth 100k less. 

Spoken to Agent who will see if the vendor will drop the price to the 50k less price of the first valuation. I said I wont put anything more towards it to be safe so lets see what they say. If this was a non investor I suppose they would have more reason to drop after 2 valuations but some vendors who are cash rich dont mind waiting for cash buyer. 

It definitely does seem a bit odd that the down valuations are so far apart. 

I am confused though about how you are buying a contract assignment if the building is almost 18 months old? I'd also be a bit concerned that the vendor is trying to sell a now second hand property of a type and in a location that has likely fallen in value since he bought it/reserved it (based on what you've said, this will have been just prior to the pandemic).

With regards to wear and tear - perhaps the finish isn't that great/no-one has been there to do snagging/because the property isn't occupied, it isn't showing in its best state to the valuer?

I think the issue re: the building materials potentially being a problem in the future is also a legitimate concern. The EWS1 is only valid for so long, and if guidance changes between now and when the building is due for re-inspection, it might not pass again. This could lead to problems for the bank (and you) if the flat had to be sold. 

The valuers wouldn't have downvalued it (especially so significantly) if they didn't have legitimate concerns about the price you've offered and the property's ability to hold that value. Just something for you to keep in mind if you persue it. 

(Sorry for hijacking this thread with valuation chat!)

I am buying from investor, what I meant was the current owner bought it as a re assignment and completed on it last July. So price he paid must been quite below market rate.. 

EA said snagging was done by the owner and it still has the original 2 year warranty for defects to be fixed by developer.
For cladding yes thats true, but if they did not find any combustible cladding then surely it wont impact sales. More likely that if it got a B rating then there is some there but at the moment its fine but could change. 

I deffo dont think its 100k under asking. Maybe original 50k below is more accurate due to pandemic and banks needing more strict rules in case there is a sharp drop in property prices. Also positives is close to tube and then close to CrossRail. School and Doctors surgery opening next year as well as smaller tech companies moving there soon.

ss2020jd

Update to the update:
It’s true things happen quickly. We have since received the contract, signed and returned! We just have to wait for their return, hopefully exchange early next week as my solicitor is pushing for, and completion the week after which is shorter than I was expecting but at least gives leeway if things go wrong. Holding my breath til then! 

Bookgal88

Congrats @ss2020jd! Hope I'm on the same path as you!

ss2020jd

Bookgal88 said:

Congrats @ss2020jd! Hope I'm on the same path as you!

Thanks @Bookgal88 hope so too! 

WorriedKirkels

ss2020jd said:

Congratulations to those with good news and hoping the rest of us get some positive progress soon.

it looks like the final final enquiries (!) have been answered and reported on and we don’t want to pursue anything else, but still awaiting the contract to sign! The solicitor has our deposit and has been pushing the seller’s solicitor for the contract so keeping everything crossed it comes soon. I suppose they need to agree on the final clauses and the completion date before it can be sent but still in the dark on that. 

We would have to exchange soon for the sellers to get the time in between that they want as solicitors will not be around the last week of September! 

As others have said it does happen quickly at the end, which I am hoping will be the case, but still nerve wracking! 

We wanted to fit in a viewing before exchange as there’s a lot we need to measure - did anyone who has already exchanged manage to do that or did you wait until before completion? 

Fantastic news and before you know it you will be in your new home 😁 🏡 🔑 x

WorriedKirkels

nekr0mantik said:

OMG! I will cry!
Halifax got valuation back and this time its 100k under asking! First time it was 50k under and now 100k!
If EA is telling truth and she has 5 comparable property which sold recently then how can this happen as someone must have valued these at the sold prices. 
Waiting for broker to call me and discuss if Appeal is doable or should I walk away.
If I walk then I dont think I can apply for 3rd time to mortgage once I found a new property so may need to wait until 12 months have passed.  

I’m so sorry 😢 Is there anyway you can now go back to the EA and negotiate for a reduction? With two significant under valuations surely they will need to reconsider their position. 

House_owner

I got a phone call this morning from the estate agent handling my purchase- she wanted to know what completion date I wanted. I explained that I had suggested one to my solicitor on Monday who had said that she would pass the suggestion to others in the chain - but looks like the suggestion hasn't got through to my seller/estate agent - lack of commuication again somewhere I think!

WorriedKirkels

So, a quick update. After a rather manic 24 hours and urgent requests by the our buyers buyer (FTB) solicitor to HTB ISA for urgent funds release we have EXCHANGED!!!! Woo hoo 😁 completion set for tomorrow and currently in packing chaos.  A big thanks to you all for keeping me sane these last few days 🤪🤯🙏😁 x

nekr0mantik

WorriedKirkels said:

nekr0mantik said:

OMG! I will cry!
Halifax got valuation back and this time its 100k under asking! First time it was 50k under and now 100k!
If EA is telling truth and she has 5 comparable property which sold recently then how can this happen as someone must have valued these at the sold prices. 
Waiting for broker to call me and discuss if Appeal is doable or should I walk away.
If I walk then I dont think I can apply for 3rd time to mortgage once I found a new property so may need to wait until 12 months have passed.  

I’m so sorry 😢 Is there anyway you can now go back to the EA and negotiate for a reduction? With two significant under valuations surely they will need to reconsider their position. 

Thanks
Yeah I gone to agent and said two valuations both under so speak to vendor about price. Lets see what comes back. 
But chances I aint very high as vendor is investor who is after profits after all so he can say no to 50k reduction and wait until next year or two and try again. Hopefully he is sensible and understands the current pandemic means his plans may not come true and does this. I suspect even at 50k less he wont take a loss apart from stamp duty paid he wont get back as I seen these sell for around 50k less mark as re assignments so maybe he paid 50k less and wanted to make 50k back.

WorriedKirkels

nekr0mantik said:

WorriedKirkels said:

nekr0mantik said:

OMG! I will cry!
Halifax got valuation back and this time its 100k under asking! First time it was 50k under and now 100k!
If EA is telling truth and she has 5 comparable property which sold recently then how can this happen as someone must have valued these at the sold prices. 
Waiting for broker to call me and discuss if Appeal is doable or should I walk away.
If I walk then I dont think I can apply for 3rd time to mortgage once I found a new property so may need to wait until 12 months have passed.  

I’m so sorry 😢 Is there anyway you can now go back to the EA and negotiate for a reduction? With two significant under valuations surely they will need to reconsider their position. 

Thanks
Yeah I gone to agent and said two valuations both under so speak to vendor about price. Lets see what comes back. 
But chances I aint very high as vendor is investor who is after profits after all so he can say no to 50k reduction and wait until next year or two and try again. Hopefully he is sensible and understands the current pandemic means his plans may not come true and does this. I suspect even at 50k less he wont take a loss apart from stamp duty paid he wont get back as I seen these sell for around 50k less mark as re assignments so maybe he paid 50k less and wanted to make 50k back.

🤞they see sense as any other buyer would face the same issues, will be watching out for updates 😊