Bank overvalued property

takman

lindens wrote: »

She was only buying 40% as she could afford £98K. Now 40% is working out at £114K she cannot afford that.
So she cannot afford to stump up the extr £16K so she will have to reduce the percentage down to 34% in this case. which means the rent is more. Lose/Lose

She said that the housing association are happy to sell her 40% of the property for £98k.

So just because the bank overvalue it i don't see why that would mean she has to pay the housing association more. Like i and other have said the price you pay for the house is nothing to do with the bank.

If a freehold house is overvalued the bank don't make the person pay more for it. So why would Shared Ownership be any different?

candy-lou wrote: »

finally someone gets where I am coming from - any advice to follow - or just suck it up and forget it? literally the only way onto the property ladder and even that seems like it's not going to be possible now.

If the housing association are happy to sell you 40% for £98k then it doesn't make any sense the bank want you to pay more just because it's valued higher.

But as has been suggested simply go to a different lender.

candy-lou

Jane_B wrote: »

I don't understand why the bank would go down this road, surely its better for them to lend less to the value of the house, instead of forcing you to pay more for a property

Its very strange, do you have a broker, as it might be Nationwide are actively trying to push you into using another lender. Which you will have to do, if this is their stance.

For example some car insurance companies, when confronted with a 17 year old male, will sometimes quote an obscene amount (I have seen some asking for £10,000 when most of the cheaper ones are around the £1k mark for example) to make sure they don't go with them, as they don't want that person as a customer. Maybe that's what the bank is doing? pricing you out to avoid lending to you at all.

takman wrote: »

She said that the housing association are happy to sell her 40% of the property for £98k.

So just because the bank overvalue it i don't see why that would mean she has to pay the housing association more. Like i and other have said the price you pay for the house is nothing to do with the bank.

If a freehold house is overvalued the bank don't make the person pay more for it. So why would Shared Ownership be any different?



If the housing association are happy to sell you 40% for £98k then it doesn't make any sense the bank want you to pay more just because it's valued higher.

But as has been suggested simply go to a different lender.

Thank you both, I'm glad it wasn't just me thinking it seemed wrong. I did have another kick off at them today when I phoned to explain I had made an appointment elsewhere and the lady I spoke to agreed it wasn't right, she phoned some high up people who amazingly agreed too ... they are trying to adjust it so it matches the original value .... we shall wait and see the outcome.

Klr005

A valuation from a bank is to determine if the property is safe to lend on and a good investment for their money.

The housing association are setting the purchase price.

Its not up to the bank how much you pay. You're not buying from them.

financegeek

candy-lou wrote: »

Thank you both, I'm glad it wasn't just me thinking it seemed wrong. I did have another kick off at them today when I phoned to explain I had made an appointment elsewhere and the lady I spoke to agreed it wasn't right, she phoned some high up people who amazingly agreed too ... they are trying to adjust it so it matches the original value .... we shall wait and see the outcome.

I'm trying to get my head around why Nationwide would have an issue in the first place, as the purchase price is the purchase price regardless if they think it's worth more?

well done for persevering and i hope you get a positive outcome from this.

MysteryMe

Yes, fingers crossed for the OP. I hope it gets sorted out satisfactorily.