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Massive down-valuation on a new build

57 replies 11.4K views
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Replies

  • 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.
    I work in the financial services industry but I am not a financial adviser. I do not give financial advice. Anything I say here is for discussion purposes only and should not be construed as advice.
  • BoGoFBoGoF Forumite
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    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.
  • 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.
    Selling off the UK's gold reserves at USD 276 per ounce was a really good idea, which I will not citicise in any way.
  • AnotherJoeAnotherJoe Forumite
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    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.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
  • edited 7 September 2018 at 5:08PM
    LisbonLauraLisbonLaura Forumite
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    edited 7 September 2018 at 5:08PM
    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.
  • Whenever can seen shared ownership the "full price" has been far higher than similar houses nearby that aren't shared ownership
  • Mutton_GeoffMutton_Geoff Forumite
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    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.
    Compensation/Refunds - £4,655 | Stooz Profits - £7,636 | Quidco - £4,365 | Tax Avoidance - £107,000
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  • Crashy_TimeCrashy_Time Forumite
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    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.
  • brit1234brit1234 Forumite
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    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.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • Tom99Tom99 Forumite
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    Sound like the valuer did you a favour and you have had a lucky escape.
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