Valuation below sale price and previous sold pric

andyvan

Funnily enough, this is with Nationwide as well. I'm loathed to go with another lender because, as someone else pointed out, it could change absolutely nothing.

I'm just hoping vendor is pragmatic about it. We'll see.

andyvan

ReadingTim wrote: »

The way to play is would be to explain that if your surveyor downvalued it, there's a good change another buyer's surveyor would do exactly the same. The vendor has to take that chance, or hope they can find a cash buyer (who could play the cash buyer card and offer lower anyway).

Yeah. I gather they have already had an offer on another property accepted, so I'd say they're fairly motivated to get the deal done.

andyvan

Mutton_Geoff wrote: »

Are you sure the lease is still 99 years? Quite often they are listed as "99 years from 1995". If it's an early 1990s development, then it could be 25 years old or more which means the lease only has 74 years left.


This is about the limit for a heating system, boiler etc, so there could be some costs just around the corner.


On the other hand, it may have had a 125 year lease when built, and 99 years remaining as you say. 99 years would not be a factor in a valuation provided it doesn't contain those nasty modern inflated escalating clauses.

I mean, the solicitor hasn't got to the stage of checking the lease yet, but it would be pretty dumb for the agent mislead me on the lease length. There's a world of difference between 99 years and 74. It would be worth way less than £210,000 if it had less than 80 years left on the lease.

hazyjo

andyvan wrote: »

I mean, the solicitor hasn't got to the stage of checking the lease yet, but it would be pretty dumb for the agent mislead me on the lease length. There's a world of difference between 99 years and 74. It would be worth way less than £210,000 if it had less than 80 years left on the lease.

The EA goes by what the vendor says. They've probably not even seen the lease.


Vendor may have said 'it was a 99 year lease' and not elaborated. Check it out sooner rather than later.

andyvan

Well, the agent has said the vendor can't/won't go any lower, which leaves me with only two options really.

1) Challenging the valuation
2) Trying another lender

Oh and pulling out of the deal, obviously. Ho hum.

Mutton_Geoff

andyvan wrote: »

I mean, the solicitor hasn't got to the stage of checking the lease yet, but it would be pretty dumb for the agent mislead me on the lease length. There's a world of difference between 99 years and 74. It would be worth way less than £210,000 if it had less than 80 years left on the lease.

I would say the length of remaining lease had a large bearing on what I would offer. It’s a bit remiss of the agent not to have pressed the vendor for this fairly critical bit of information before you start spending money on a solicitor to find out this information as a buyer.

The vendor will be aware and should have a copy of their lease as part of their own purchase pack however long ago that was. They should certainly know who the management company is who will know who the freeholder is and so a couple of phone calls should provide the info you are looking for.