High mortgage valuation problem

28tsw

Buyer is struggling to get TSB to sign off a valuation that came in higher than sale price due to system problems 

Has anyone heard of this before or even experienced it? I can’t understand why this is a problem as it can’t be uncommon! 

Are we wasting our time waiting for this to be fixed??

MaryNB

What are the system problems? (ETA: Is the issue that TSB doesn't trust the result from surveyor that carried out the valuation on their behalf?)
Usually if the lender's valuation is higher than the purchase price, the LTV is based on the purchase price. They base it on the lower of the two. If the buyer based the mortgage application on the purchase price, and the bank do the same, nothing has changed.

See page 11 https://www.tsb.co.uk/information_for_mortgage_customers_tsb.pdf
"We’ll only lend you a certain percentage of either the purchase price or the property valuation, whichever is lower."

28tsw

I’m not sure specifically aside from the systems don’t like it - it’s been escalated several times and is with a manager.

davidmcn

Do you mean it's too high because of the system problems, or that the system problems are making it difficult for them to sign off on it?

If the valuation is significantly higher than the (open market?) price then lenders will not unnaturally want to have another look at it in case it suggests something odd is going on.

28tsw

I’m not sure. All that’s been said is that they are trying to sign it off but the systems are making this difficult 

What drives me crazy about it all as the sale price was decided after a RICS valuation so that’s two surveys with different amounts that have caused the systems to get confused!

Thrugelmir

Why were two separate surveys/valuations conducted?  Was the purchasers own lower than one performed for the lender?

28tsw

Thrugelmir said:

Why were two separate surveys/valuations conducted?  Was the purchasers own lower than one performed for the lender?

It’s shared ownership so I had to do one to price it for selling - second from lender