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New Build Flat Undervalued by 75k!

Hi All

New to MSE so please be easy with me. I'm a FTB. I reserved a property with Countryside in September. Applied for a mortgage in December, all was fine with me, however the property failed valuation. I was advised by the developers that they are not allowing no more valuations to take place whilst they negotiate and have internal meetings with the valuers. It's now been 2 months (my mortgage application has expired). Every time I chased the advised they are still having meetings.

Yesterday I finally got a call from my broker to say He heard heard back from Countryside and they have advised not to use any of the big lenders as they use Countrywide and Eserve as valuers and they have undervalued all the properties. I said so who's the "big" lenders, he says Barclays, Nationwide, Halifax, Santander, TSB etc. He said but don't worry I've found a great deal for you!

I'm honestly disgusted that he is willing to let me use a small lender - Clearly if ALL the big lenders won't give a mortgage there's an issue that needs to be addressed? I get the impression he's just after the commission. He also "advised " the valuers are not looking at the value when the development is finished in 5-10 that's the thing. WHY SHOULD THEY??!!! To add, the broker was recommended by the developers.

I've expressed my disgust of this solution to both broker and developer - I've also told them whilst im happy to consider another lender i will not allow the developers to stipulate who I can use and I suggest the main issue (value) is addressed.

Sadly I'm starting to realise i may have to walk away ☹☹☹ .

Has this happened to anyone else? What to do....
«1

Comments

  • Be really happy you’re not spending an extra 75k on an overpriced property, and find another one.
    2021 GC £1365.71/ £2400
  • I would have walked already if I was you and im a FTB. I wouldn’t trust your broker (probably getting commission from the developer and mortgage company). I would seek probably two more valuations by people you wish to value it. I wouldn’t use a lender recommended by him or the developer if you do proceed. If the developer disagrees then walk away and save yourself 75k or at least the time and years of worry.

    Pricing of new builds worries me though, particularly with Countryside. They are selling 3 beds for 300K+ in a pretty horrid part of my city where you can pick up a 3 bed that is 10 or 20 yr old house for 150k. The homes are nice though.
  • eddddy
    eddddy Posts: 17,508 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    How did you find your broker? Were they recommended by the developer?

    It sounds like they are looking after the developer's interests and not yours.

    That's a big reason why it's often best to avoid brokers and solicitors recommended by a developer.
  • eddddy wrote: »
    How did you find your broker? Were they recommended by the developer?

    It sounds like they are looking after the developer's interests and not yours.

    That's a big reason why it's often best to avoid brokers and solicitors recommended by a developer.
    To add, the broker was recommended by the developers

    There's one of your problems
  • I think the thread title should be changed to 'Developer trying to charge 75k too much for a property'
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    OP you made a rookie mistake and using the developer/EA's services, they are not impartial and do not have your interest at hand, but rather their own profits and commission
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • ciderboy2009
    ciderboy2009 Posts: 1,234 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Car Insurance Carver!
    edited 16 February 2019 at 11:00AM
    Pepperseed wrote: »
    ... I was advised by the developers that they are not allowing no more valuations to take place whilst they negotiate and have internal meetings with the valuers...


    ..they have advised not to use any of the big lenders as they use Countrywide and Eserve as valuers and they have undervalued all the properties...

    Those two bits would be enough to make me walk. The properties are clerly not worth what the developers would like them to be worth.


    I hope you've not already exchanged contracts?
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Pepperseed wrote: »
    Hi All

    New to MSE so please be easy with me. I'm a FTB. I reserved a property with Countryside in September. Applied for a mortgage in December, all was fine with me, however the property failed valuation. I was advised by the developers that they are not allowing no more valuations to take place whilst they negotiate and have internal meetings with the valuers. It's now been 2 months (my mortgage application has expired). Every time I chased the advised they are still having meetings.

    Yesterday I finally got a call from my broker to say He heard heard back from Countryside and they have advised not to use any of the big lenders as they use Countrywide and Eserve as valuers and they have undervalued all the properties. I said so who's the "big" lenders, he says Barclays, Nationwide, Halifax, Santander, TSB etc. He said but don't worry I've found a great deal for you!

    I'm honestly disgusted that he is willing to let me use a small lender - Clearly if ALL the big lenders won't give a mortgage there's an issue that needs to be addressed? I get the impression he's just after the commission. He also "advised " the valuers are not looking at the value when the development is finished in 5-10 that's the thing. WHY SHOULD THEY??!!! To add, the broker was recommended by the developers.

    I've expressed my disgust of this solution to both broker and developer - I've also told them whilst im happy to consider another lender i will not allow the developers to stipulate who I can use and I suggest the main issue (value) is addressed.

    Sadly I'm starting to realise i may have to walk away ☹☹☹ .

    Has this happened to anyone else? What to do....
    You only have three choices...

    1. Negotiate a price reduction.
    2. Find a lender who doesn't down-value.
    3. Walk away.


    3 is the only one that is entirely within your power. Whether the issue is the lenders, the valuers or the price is kinda irrelevant, except that you clearly thought that price was fair, based on your own assessment of the market and comparable properties - else you wouldn't have offered it.
  • Yes unfortunately, I'm now feeling a made an error using the developers recommended broker. However I do have friends that done so and they didn't have any issues - the broker still worked in thier best interest.

    I agree Countryside overprice properties - I think all new builds do!

    Luckily I've not exchanged contracts yet (though they keep putting pressure on me to) and will not until the matter has been addressed.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Pepperseed wrote: »
    I agree Countryside overprice properties - I think all new builds do!
    I repeat - YOU AGREED that price was fair and appropriate, else you would not have offered it.
    Luckily I've not exchanged contracts yet (though they keep putting pressure on me to) and will not until the matter has been addressed.
    You CAN'T exchange until you are absolutely ready to purchase - which includes having your source of funds lined up and ready to go. You do not even have a lender at the moment, so you are nowhere near ready to exchange.
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