Appeal Down-Valuation

Newtown

Mo87 wrote: »

Second valuation booked in for the 5/9/17 with Colleys this time around. Hopefully they will see the value at the the revised selling price of £246,000.

Sounds like a Waste of money and time. Are you not better off by trying a different lender ?

we had a similar situation.

Property = 170k
Nationwide down valued £160k
Appealed but Mortgage broker said that in 95% of the cases he has never seen appeal being successful
Applied New application with Stander same day= They accepted and offered at £170k

Property is worth what you are willing to pay for it. For us if its the right property paying 2k to 5K is neither here nor there provided its a good property and our forever home.

(Just my thoughts)

kingstreet

Newtown wrote: »

Sounds like a Waste of money and time. Are you not better off by trying a different lender ?

we had a similar situation.

Property = 170k
Nationwide down valued £160k
Appealed but Mortgage broker said that in 95% of the cases he has never seen appeal being successful
Applied New application with Stander same day= They accepted and offered at £170k

Property is worth what you are willing to pay for it. For us if its the right property paying 2k to 5K is neither here nor there provided its a good property and our forever home.

(Just my thoughts)

The OP will achieve the same result as you. A valuation by a different surveyor.

Colleys is the LBG in-house survey arm, so chances are it will have done more of the valuations on the site, so there is more chance of it valuing up when the regular person inspects.

Paying twice is obviously a different matter compared to your two free valuations.

caprikid1

"To me it doest matter how the deal is structure, their admin etc. as long as it shows I have paid £240,000. In my opinion surely their is a cost for said incentives somewhere within the sale price of the property. Does anyone actually know how this is 'hidden' ? "


Problem is the builder wants £246,000 on the landregistry so it does make a difference if you take the incentives off and change the price as the Landregistry figure then shows £240,000

Mo87

They are adamant they won't go to the £240,000 as they have circa 5 more of this house type to be built sold before the site is complete, with them being advertised currently at £259,950 one selling at £240,000 would de-value each of the remaining ones.
I personally don't get that as the property isn't due to complete until Jan-March and it takes circa 3 months to appear on the land register therefore it would only be visible in reality once the site is due to complete early July.

Hopefully Colleys will get me the desired figure on the plot.

Mo87

So 2nd valuation carried out today by Colleys themselves. Had a call from the Developer sales office who said it was done by someone who has valued other plots on the site, he was very thorough and there for close to an hour going through the plans/spec etc. of the property.
She said it all seemed positive with only concern raised by him the number of incentives, so not sure if this will be an issue ?

Incentives agreed;
- Stamp Duty Paid
- 3% towards Deposit
- £1000 towards Legal Fee;s
- Flooring
- TV Mounting living area
- Upgraded Wardrobe in Bedroom 1 and '£500 allowance' towards bedroom 2 wardrobes

Worried ....

Time2go

Think Halifax allow only 5% of value for incentives then it's a down value (might be what happen d last time). I think your pushing it with amount of incentives you have.

Time2go

Your at 11k of incentives before you even get down as far as flooring

Mo87

The purchase price is £246,000

5% = £12,300
So £11,000 of incentives would be under this figure.

Surely the developer would be aware of this 5% allowance and not exceeded that figure. How are the other incentives; flooring, wardrobes etc. calculated ?

Mo87

P.S. Since the 1st valuation purchase price dropped from £252,950 to £246,000 in light of the down valuation.

Incentives changed as follows;
3% gifted deposit and Stamp Duty reduced in line with lower purchase price
Legal fee's reduced from £1500 to £1000

Addition of: £500 towards wardrobes in Bedroom 2

kingstreet

Halifax accepts builder cash incentives on HTB but the level depends on your deposit.

If you are paying only 5% deposit, the incentives are limited to 1% of the purchase price.

You need to ensure this;-

Cash incentives for shared equity applications are acceptable provided the total value of the loan plus incentive together does not exceed 95% of the value of the equity share being purchased.

is followed.