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Revaluation just before exchange £6k out of pocket!
louisemariecu
Posts: 2 Newbie
Hi
Wondering if someone might have gone through something similar with house prices falling at the moment
I put my property on the market last June and got a buyer in September. Due to it being shared ownership it has taken a while to go through. However we have been in a position to exchange for the last 3 weeks but my buyers solicitors have made numerous errors which have halted exchanging contracts.
The latest error being that they never checked my buyers lastest mortgage offer (came in end of February) and the loan amount was wrong. We thought that this would be a simple typo error and quickly resolved. It now turns out that her lender have done a revaluation and have valued the property £6,000 less than the original sale price (£98,000 down to £92,000 for 40% share). I am now taking the hit of this or potentially lose the property I am buying.
Given that the property is SO the buyer cannot pay more than the valuation so I am now £6k out of pocket when if the mortgage offer had been checked back in February there may not have been the need for a revaluation.
I guess what I am asking is if the mortgage broker and the solicitor both missed this can anyone be held responsible so I can be compensated in anyway or do I just need to accept that this is the way selling a property goes sometimes
Wondering if someone might have gone through something similar with house prices falling at the moment
I put my property on the market last June and got a buyer in September. Due to it being shared ownership it has taken a while to go through. However we have been in a position to exchange for the last 3 weeks but my buyers solicitors have made numerous errors which have halted exchanging contracts.
The latest error being that they never checked my buyers lastest mortgage offer (came in end of February) and the loan amount was wrong. We thought that this would be a simple typo error and quickly resolved. It now turns out that her lender have done a revaluation and have valued the property £6,000 less than the original sale price (£98,000 down to £92,000 for 40% share). I am now taking the hit of this or potentially lose the property I am buying.
Given that the property is SO the buyer cannot pay more than the valuation so I am now £6k out of pocket when if the mortgage offer had been checked back in February there may not have been the need for a revaluation.
I guess what I am asking is if the mortgage broker and the solicitor both missed this can anyone be held responsible so I can be compensated in anyway or do I just need to accept that this is the way selling a property goes sometimes
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Comments
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The latter. You've got absolutely no legal connection with the buyer's broker or the buyer's solicitor, so it doesn't matter how incompetent they are, you can't sue them.0
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Didn't you have to have your RICS valuation refreshed as usually the HA insists it be kept up to date during an SO sale?I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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I have never been asked to have a RICS valuation updated during the sale. My buyer has had one extension to her offer back in February and an up to date valuation was never requested then. The only valuations that have taken place were the initial one in September then this last one this week0
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Occasionally if there are issues with price at the 11th hour the chain is asked to contribute, eg your EA pleads with the house you're buying to reduce their price accordingly (or half way or whatever) in order that it an complete rather than fall through entirely. Could be worth a go?0
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6k is not bad, could have been a lot worse.0
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