Massive down-valuation on a new build

Atreyu107

I asked the HA what valuations were received on other plots in the same block.

There are upper limits on affordability for SO properties. An individual with enough cash to make up a 15% shortfall on a valuation would more than likely exceed them.

BoGoF

How would the HA know what the valuation was?

How would they know if a buyer did have the means to make up a shortfall.

As I understand it such propertiez are in high demand as you get to live in a property you could only dream off and people will lie to get one.

Computer_Beginner

OP,

Just my opinion, but this whole thing sounds risky and expensive.
I would move somewhere cheaper and buy a normal freehold house, if possible.

If that's really not possible - then good luck.

AnotherJoe

I do wonder if SO properties are more expensive than non, simply because they allow people to buy a more expensive place than otherwise. A bit like PCPs on cars.

LisbonLaura

I didn't realise the pricing of new property was now enshrined?

Erm OP, you work in financial services?

I must be missing something here.

gycraig_2

Whenever can seen shared ownership the "full price" has been far higher than similar houses nearby that aren't shared ownership

Mutton_Geoff

gycraig wrote: »

Whenever can seen shared ownership the "full price" has been far higher than similar houses nearby that aren't shared ownership

My thoughts too. Gearing might make it an easy way in but an expensive way out. Maybe the OP is of the mindset that they are buying the whole place for their purchase price therefore viewing it as a bargain whatever the price.


These schemes seem to disadvantage those who can least afford it.

Crashy_Time

theartfullodger wrote: »

I've long been of the view that the shared ownership schemes/scams have had "optimistic" pricing, higher than comparable open market stuff.


Well, they would, wouldn't they. Just because it's a HA doesn't mean they're not greedy for their bonuses & high salaries...

A lot of houses have "optimistic" prices IMO. It probably won`t change much until recession/rate rises hit.

brit1234

Don't forget all the other shared owenship extra costs and restrictions. I would look and understand the small print before going forward. Personally I have always thought shared ownership a scam to inflate prices and labled wrongly as affordable homes.


As for your valuation, you do know London house prices are still falling and awash with unsold flats. You wait 3 months and I am sure the valuer will value it even lower.


Must be a high end area for that price.

Tom99

Sound like the valuer did you a favour and you have had a lucky escape.