Help to buy - Down Valuation and change of lender

middleclassbutpoor

Before you do anything - ensure the MA will get you the product fee refunded. Once they have that, tell them you will consider applying elsewhere with them but not before.

Thrugelmir

owen17 wrote: »

I knew from the beginning it was a leasehold with a non investing clause although I am not sure if the surveyor took that into account as I cannot see anything in his report apart from ticking “No” in the Property to let cell in the form (which could make the valuation even more down in my opinion).

What else is included in the selling price? Fitted kitchen appliances, flooring, bathroom tiling , landscaped garden etc etc. Any other kick backs such as stamp dyty incentive, contribution to legal fees.

Ability to let the property doesn't make it any more valuable from a lenders perspective. Not least that let property may not be maintained to the same standard as a persons home.

owen17

davidmcn wrote: »

I doubt the council will care, unless they have some interest in the site we don't know about. If the planning condition causes the developer serious problems with sales then the council might agree to amend it, but that would require a formal application to the planners.

Thank you. In theory it is a regeneration area so they want to regulate who is coming to the community.

owen17

Exodi wrote: »

£995 would extremely high for the valuation fee and is typical for a product fee so I guess they must have paid it before accepting the mortgage? I'm astonished the MA allowed this...

This is extremely bad advice by the MA - commonly the product fee is added to the mortgage for this exact reason (should the mortgage not proceed you're not out of pocket), most lenders also retain the old LTV even with the increased balance.

I think you've received very poor advise from your MA...

Thanks Exody and Bossypants.
It is definetly as Exody says, the MA told me, !"you can pay this now or during the mortage" but didn't tell me about pros and cons, and given I had the cash now I thought of paying it, never thought they would ask me later to change the lender. First time buying a property and I thought that having a MA would be enough for my lack of knowledge as they are the professionals on this.

kingstreet

owen17 wrote: »

Thank you. In theory it is a regeneration area so they want to regulate who is coming to the community.

The Council will have no interest in your mortgage issues unless its S106 Agreement is causing problems. Then it may become involved to ensure its requirements are met in a way the development can actually be sold/mortgaged.

kingstreet

owen17 wrote: »

Thanks Exody and Bossypants.
It is definetly as Exody says, the MA told me, !"you can pay this now or during the mortage" but didn't tell me about pros and cons, and given I had the cash now I thought of paying it, never thought they would ask me later to change the lender. First time buying a property and I thought that having a MA would be enough for my lack of knowledge as they are the professionals on this.

So which lender and what product?

owen17

AnotherJoe wrote: »

Unfortunately its not "their" MA

Owen, cut your losses and walk away and next time do your homework first even if that's just asking here. Sorry you've been ripped off (well, that's how I see it anyway)

Thanks for the response Joe and is actually some friends and family have advised too...but I want to fight it. I have paid already £300 to the solicitors (recommended by the developer too), £500 reservation and £995 to Santander.

I think they need to prove why they are so right the valuation from Santander is wrong.Otherwise I am not going to pay a penny more but definitely not going to cancel the reservation without fighting.

owen17

middleclassbutpoor wrote: »

Before you do anything - ensure the MA will get you the product fee refunded. Once they have that, tell them you will consider applying elsewhere with them but not before.

I agree with you at 100%, in case I have to change the lender, thanks a lot for the advice.

owen17

Thrugelmir wrote: »

New builds are often overpriced. What incentives are on offer?

Hi Thrugelmir
I am not sure what you mean with incentives? The house comes with a 10 years warranty but nothing else I can think of. I have just seen in their website they are building a plot next to mine which was previously reserved and it has been unreserved recently ( I don't know the reasons) and they are offering this house with furniture package, however mine didn't include it. It is not something I have mentioned to them though as I have discovered this literally this week.

Slithery

Incentives are all of the extras that you try and get thrown in for free like landscaping, additional sockets, higher spec kitchen, flooring, stamp duty etc.

You negotiate all of this with the developer before reserving the property.