What to do? Feeling fed up! Valuation came back as 20k less!

Mjl11

So we’ve applied for a mortgage for a new build, however at the back of the garden is a substation. We’ve paid £330 for a valuation fee to be done, today it’s come back as it’s not worth the full value of £310,000 but only £290,000 because of the sub station. This is a shared ownership house with Greenfields community housing. I’ve beeb in contact with them and she is going to speak to the head of department to see what they say, but do you think reducing it by 20k is likely to be a no go? We can’t go to another lender as this is the only one who may accept us, The Melton Group due to credit history. It’s not an option to wait and try again. We’ve paid a non refundable £500 to greenfields. She said they have had a survey done and it came back as £310k. So greenfields are coming back to us tomorrow/weds to see if they will reduce the house price for us, so we can go ahead. It’s shared ownership. If not we’ll have to pull out and lose our £330 valuation fee, £500 reservation fee and then to apply to another house pay it all over again!! Help please I feel like crying!

[Deleted User]

I am sorry you fee this way but as always with these situations you have try but yourself 5 years down the line and you want to move home

The lender has just saved you going £20k backwards as soon as you move in. £330 valuation fee and £500 reservation fee is a lot less than £20,000.

Unless you want to appeal then be prepared to walk away. There isnt any reason for the developer to reduce the price as they would want ot see what other lenders would value it at first.
Makes more sense for them to hold on to it for a new buyer than to lose £20k from their balance sheets

I honestly wouldnt expect any reduction

Cscott139

If they believe it is worth £310k then they will keep it on the market but many lenders use the same panel of valuers so even if they do find another buyer this issue may come up again as it could be the same person/company that goes out.