Lender has disregarded RICS valuation

yvmilne

Hi there, wondering if anyone has had anything similar.
We wanted to sell our Shared Ownership, and the HA stated we had to have it valued by a RICS guy which we paid for, HA agreed and we found a buyer.
Everything progressed as normal but our buyers bank have now done a remote valuation and determined it is worth £10k less.
We have sent them a copy of our RICS (physical survey) report, however they said they can't accept it.
They have advised they can do a physical survey after lock down is lifted, but due to Covid-19 they don't know how long it will take, and it may have an even lower value.  This seems arbitrary and almost threatening.
I don't understand how they can disregard the RICS survey, I'd understand if it was priced by an Estate Agent.  How can they accept a remote survey over a physical one?
Does anyone have any advice?  We can't afford to drop the price, they don't have the extra cash to top the new mortgage offer up.  I don't think changing lender would be an option for them as they are first time buyers and a lot of banks are now demanding much higher deposits.
Any advice?  Can we complain to anyone or is it a case of the lender can do what they like?

Comms69

Because it's their money. 
Not sure who you would complain to, as you;re not even a party to the contract. 

Vestraun

I assume your valuation was done pre-covid? 

yvmilne

Yes, just before lock down so it is still valid.

theartfullodger

A lender can decide on if they lend, for how much, and at what rates on each property they are offered.

Just like you can if a relative or neighbour wants to borrow money from you.
As long as discrimination laws aren't broken

Comms69

yvmilne said:

Yes, just before lock down so it is still valid.

What do you mean valid? It's valid on the day it's done. Afterwards the value will change

cattie

As it's the lender's money at stake here, they can of course do what they like. It's a common issue where a valuer acting on behalf of a lender down values a property, meaning lender will adjust the mortgage amount offered accordingly. If your buyers can't afford to bridge the gap & you won't reduce selling price then all you can do is put property back on the market & hope the same thing doesn't happen again.

davidmcn

Your buyers' lender is entitled to make decisions about lending in any way they like, you have no right to complain about it and your buyers don't have much more.

In any event, lenders will only accept valuations from surveyors on their own "panel", not just any old RICS-registered firm - in the same way that you get to choose your surveyor, solicitor etc, and aren't forced to accept the word of somebody else's advisers.

yvmilne

Our RICS survey has a valid-to date is what I meant by still being valid.

yvmilne

Thanks all for comments, I guess it is what it is.  Not sure why the HA insisted on us using RICS to determine a fair selling price if the lender can choose their own price without even viewing the property.  Who I am assuming is also RICS.

Comms69

yvmilne said:

Thanks all for comments, I guess it is what it is.  Not sure why the HA insisted on us using RICS to determine a fair selling price if the lender can choose their own price without even viewing the property.  Who I am assuming is also RICS.

Because you need a value for shared ownership and the lender needs a value to lend against. 
Two separate functions