Help to Buy-significant down valuation

Woodmatt13

Hi everyone,

I’ve posted a few times here and always found everyone so helpful. We purchased a new build via the help to buy scheme two years ago. We are in the process of remortgaging, all accepted subject to valuation...however the valuation has come back at £62,000 less than we paid for it 2 years ago. Meaning we would be 80% LTV and can’t now get a new mortgage.
We have tried to challenge this but it has been declined by the surveyor.

My question is, has anyone else experienced anything similar? We expected our new build to decrease in value a bit, however not £62,000!!!!!

Other homes on our estate have sold for either £5,000-£10,000 either less than or more than the purchase price but none to the extent of ours!

The issue we had with the challenge was that there haven’t been enough similar homes sold on our estate to compare it to. However, this is obviously not our fault. We have tried to highlight the other properties that have not experienced such a decrease but this hasn’t been taken into account.

I would be grateful for any advice or any other similar experiences.

Thanks very much in advance

[Deleted User]

A weak housing market, no comparables, and maybe some appetite to lend issues at the end of the year. Perhaps the particular lender has just told the valuation panel to be tight on the htb remortgages

Can you try another lender?

Caz3121

Woodmatt13 wrote: »

the valuation has come back at £62,000 less than we paid for it 2 years ago.

in your other post you said you purchased it for £400k and it has been valued at £365k...this makes it £35k less rather than £62k

Woodmatt13

Thanks for your replies. Sadly we only meet the criteria for natwest for various reasons.

Sorry for confusion re the house purchase price. We purchased at 400, after this was reduced from 427 provided we could move in within 3 weeks which we did. It was originally valued at 430. All of our neighbours purchased theirs at 427 or 430 which is why I used those figures. Sorry for any confusion.

[Deleted User]

If natwest are your only lender choice then there isn't a lot you can do. They won't entertain an appeal unless they have done something daft like value the wrong property.

Are you 100% sure they are your only lender?

haras_nosirrah

Product transfer with your existing lender and then look again when that comes up for renewal?

Woodmatt13

Thanks very much for your replies. Natwest did send a challenge off to the surveyor however they stuck with their original figure.

I think we shall have to just wait and see whether they will allow us to apply again when a few more houses have sold around here. There are a few up for sale. Does anyone know the rules about reapplying with natwest?

Sadly my current lender doesn’t allow a product transfer, but thanks for the suggestion.

Retired_Mortgage_Adviser

If it is Precise, I'm pretty sure I have done PTs as a broker.

Momentum_fs wrote: »

Which lender are you with? is it Precise mortgages by any chance?

Woodmatt13

Thanks for your replies. Currently with Kensington and I don’t think they offer product transfers for help to buy.

silvercar

We purchased at 400, after this was reduced from 427 provided we could move in within 3 weeks which we did. It was originally valued at 430. All of our neighbours purchased theirs at 427 or 430 which is why I used those figures. Sorry for any confusion.

On paper, you bought for 400 when others paid 427-30, so in valuing now, the lender is valuing yours a proportionally less than the valuse the 427-300 ones are currently worth.

sal_III

Check if there is an online retention product from your current lender that you can use, even if the fixed rate is not ideal, it will be better than SVR.

Meanwhile think about repaying some of the HTB EL on the cheap, while you have low valuation.