Help to buy - Down Valuation and change of lender

owen17

I am going to tell the developer that either they put the price down or they appeal the valuation. My only doubt is, if they appeal and they lose, what happens next. They aren’t forced to sell but I don’t think they cannot offer the house on sale again unless I pull out from the purchase which I don’t want to do either.
I will keep you updated and thank you all for the super helpful responses.

owen17

I sent an email to the developer cc'ing the MA with the following:

"I do not think I have to pay for any second valuation or change to a less beneficial mortgage lender (in theory the one from Santander was the best one for me).
In my opinion, the next step is for you to either cut down the price or appeal the valuation or offering me a beneficial alternative."

The MA advisor has replied saying:
"As discussed when we last spoke I can look to offer you the option of a re-valuation with Santander at a cost to you, which I am sure will be refunded by Linden Homes or I can look to replace your mortgage with a different lender.
As you do not wish to upfront the cost of the second valuation with Santander I will now look at a different lender for you. Rates have changed since we last spoke so I will confirm the new deal with you.
I will need up to date documentation to replace the case such as payslips and bank statements."

Unless I am very thick, I don't think the MA is looking for my best interest. Do you have any suggestion guys?
Thanks in advanced.

kingstreet

What do you want them to do?

They can't negotiate the price down for you, so they are restricted to what they can - a revaluation or a new application.

owen17

kingstreet wrote: »

What do you want them to do?

They can't negotiate the price down for you, so they are restricted to what they can - a revaluation or a new application.

Thanks Kingstreet.
They can appeal it in theory can't they?
If we go through a second revaluation, and it results in a down valuation, they are going to be asking for a third valuation, and a forth one until a surveyor gives the number they want.

owen17

owen17 wrote: »

Thanks Kingstreet.
They can appeal it in theory can't they?
If we go through a second revaluation, and it results in a down valuation, they are going to be asking for a third valuation, and a forth one until a surveyor gives the number they want.

Sorry, I didn't realise when you say "They" you mean the MA. When I say "They" I mean the developer.
What !!!!es me off is that the MA doesn't give me the option to negotiate with the developer or to force them to appeal.

Crashy_Time

Sounds like a lot of drama.

owen17

Crashy_Time wrote: »

Sounds like a lot of drama.

Haha, Spanish Shakespeare.

kingstreet

owen17 wrote: »

Thanks Kingstreet.
They can appeal it in theory can't they?
If we go through a second revaluation, and it results in a down valuation, they are going to be asking for a third valuation, and a forth one until a surveyor gives the number they want.

No.

It's YOUR application. If you want to appeal your valuation you do it. You will need comparable evidence of other sales on the site and possibly of send-hand sales so your broker should obtain these from the builder and your broker should submit the appeal.

I can't say what might happen, but in my experience if a builder gets two downvaluations on the same plot, they will be far more amenable to negotiation than they will with one.

As it stands, I suspect they will cancel your reservation soon if there is no resolution.

owen17

kingstreet wrote: »

No.

It's YOUR application. If you want to appeal your valuation you do it. You will need comparable evidence of other sales on the site and possibly of send-hand sales so your broker should obtain these from the builder and your broker should submit the appeal.

I can't say what might happen, but in my experience if a builder gets two downvaluations on the same plot, they will be far more amenable to negotiation than they will with one.

As it stands, I suspect they will cancel your reservation soon if there is no resolution.

This has been the most useful post I have received so far. The developer said "we will appeal it" the other day and I see now from your post it is my decision to appeal it or not. The MA has not explained this to me in all these days. I should pay you a fee for your advice Kingstreet...Thank you very much.

kingstreet

Put it this way, we've been in this position and the builder and client have expected us to;-

gather the comparables
produce and submit the appeal to the lender
look at second valuation possibilities
look at alternative lender options

and to put them to our client for consideration and possible renegotiation.

We would do this regardless of how you came to us, off the street or were introduced by the builder in question.

As I said, your best chance of renegotiating the price is a second valuation or a new mortgage application with another free valuation. If there are two valuations which agree, the builder is going to have to accept the results.