[Need Help..] Valuation is higher than purchase price

artcjw

Hi, I really need your any comment regarding the valuation.

So far I am buying the house with the Shared ownership scheme. And, all the process was okay until today...

The issue was that valuation price from the Halifax was 30k higher than the actual purchase price, and our mortgage broker said it is not an issue. However, the House Association solicitor noticed that they are not happy to proceed with the difference.

I really don't understand why the HA is not happy to complete to sell the property? I believe the valuation check is just about the loan.

I have to wait for the response from the Halifax whether they are happy to reduce the price _ 30k or just cancel the mortgage offer. It seems I need to find the other lender, but in this case I would not happy to buy or work with them.

Could you please any advice ? It is an uncommon situation and I totally don't understand.. The mortgage broker is on Christmas holiday until the next year and others are the same..

Kind regards

KatrinaWaves

It may be that the housing association need to realise the best price, for reasons, and that with a valuation of 30k more than you are paying they need to reassess whether they are going to remarket for 30k more.

It is unusual for a valuation to give a higher valuation than the one offered, but I have no experience of shared ownership. You can see why the HA are like ‘wait we sold this for £80k and the bank say it’s worth 110k! Do we need to check our numbers(‘

csgohan4

HA has to ensure they also get the best price, since you haven't exchanged, they can do what they want. It's business , nothing personal




Changing lender's may not change this as they know the house is undervalued potentially

Jane_B

Housing associations have to usually sell the properties at market value, and its unfortunate they sold it to you seemingly under market value. They will likely relist at the higher figure.