House devalued by Lenders Surveyor

PaulGG

Need advice please!
I have recently accepted an offer my house for 115k, it was up for 120-125k with the estate agents. The buyers mortgage lender's surveyor has now said my property is only worth 105k due to the new bedroom tax legislation as we would not be able to provide a corridor to the bathroom without making the second bedroom too small to be classed as a bedroom anymore. The property is a 2 bedroom house with the one and only bathroom being located at the end of the second bedroom (both bedrooms are large enough to comfortably fit a double bed in). Obviously neither myself or the buyer has any interest in letting out the second bedroom to anybody else (the buyer is a single lady) so why does this devalue my property by 10k when it is not relevant to either party. Obviously the buyer is happy with the property as it is and does not want a corridor to the bathroom anyway so why is this even an issue? I've been told there is no way to appeal against the new valuation or even speak to anybody regarding it so the sale will now just fall through as the buyer cannot afford to pay the difference. If I sell to a different buyer am I just going to get this same issue again? Advice please as I'm pulling my hair out here!

foxy-stoat

Because the lender doesn't care if it would make a difference to you or your buyer, they only care if your buyer defaults and they repossess and have to sell it on the open market. They are only protecting their money.

This will only cause your buyer a problem if their numbers to too tight, other buyers may have more LTV so it may not matter to them.

[Deleted User]

The lender directs the valuer to give their opinion on the value of the property to the mass market. This is so they can sell the house if they ever have to reposess

If you were buying a 2 bedroom house and the only bathroom was through one of the bedrooms would it put you off buying it?
What if you have your mum to stay and you need the loo in the middle of the night?

It wont put everyone off (obviously as you have a buyer) but it will put off the 'mass market' so the valuer reports this back to the lender.

Every lender has different criteria that the valuer works against so it may be that another lender will value it at the higher price but realistically would you pay £10k extra when a valuer is saying its not worth it? She will have the same issues when she comes to sell it

PaulGG

This was exactly the response I needed, not sure why my estate agents couldn't answer it for me? My only other comment to this however is that all the other houses on my street and generally in the area are all the same, as in the only bathroom in the house is off the second bedroom, and these have been selling recently for a similar price to mine without this issue coming up? Why is it only mine that has been devalued and if the buyer tried to go with another lender are we likely to face the same issue again?

davidmcn

PaulGG wrote: »

The property is a 2 bedroom house with the one and only bathroom being located at the end of the second bedroom (both bedrooms are large enough to comfortably fit a double bed in).

You must admit it makes the property considerably less attractive to buyers than other two bedroom houses. Have you checked what similar properties are selling for?

[Deleted User]

PaulGG wrote: »

This was exactly the response I needed, not sure why my estate agents couldn't answer it for me? My only other comment to this however is that all the other houses on my street and generally in the area are all the same, as in the only bathroom in the house is off the second bedroom, and these have been selling recently for a similar price to mine without this issue coming up? Why is it only mine that has been devalued and if the buyer tried to go with another lender are we likely to face the same issue again?

Might only be that particular lender that has the criteria that says they dont like these types of properties. Its not really the valuer giving his opinion on the value, the valuer is giving his opinion on the value within the parameters set by the lender. Another lender might be absolutely fine

PaulGG

Houses on my estate are basically all the same with this bathroom situation, my house is standard for the area and comparable to the others that are selling for around the price I have sold mine for. I appreciate it doesn't sound attractive to a lot of people but for Long Eaton, Nottingham it is the norm!

bigisi

PaulGG wrote: »

Houses on my estate are basically all the same with this bathroom situation, my house is standard for the area and comparable to the others that are selling for around the price I have sold mine for. I appreciate it doesn't sound attractive to a lot of people but for Long Eaton, Nottingham it is the norm!

Selling for or advertised for? That will give you your answer as to whether it's the norm for lenders in your area.

PaulGG

Right, thank you all for your assistance, we have just had news that the surveyor has revised his valuation to 110k as when he visited the house the first time he didn't notice we had a drive on the property (didn't see the dropped kerb!) so we have agreed a deal with the buyer to sell at 112.5k so this nightmare is finally over!

rosieflowers

I've had a quick look on Rightmove sold prices and prices are all over the place - 2 bed terraces with access to a bathroom from the hallway are anywhere from £87- 130k but average around £100k - however I can't see a property with access to bathroom through second bedroom that was sold at any more than £100k OP

There are even 3 bed terraces with separate bathrooms or downstairs bathrooms at £120-130k

I imagine actual value will depend on local knowledge/ individual streets but as I say can't see a 2 bed with bathroom access via second bedroom that has sold for more than £100k