BTL valuation

ohdarn

dimbo61 said:

I can't understand why " your " estate agents stopped you from showing other potential buyers from viewing your home ?
Does it need a fair amount of work doing to bring it up to standard ? 
Rewire, new kitchen/bathroom, ñew uPVC double glazed windows ? Building work ?
The BTL investor has spent little so far without even a valuation after 5 months so don't be surprised if they try and drop the price at the last minute.
I would make it crystal clear to your estate agents that you won't entertain one penny off the price and the Estate agents will get Nothing if the sale falls through.
He wants your house for a reason.

In fairness it was our decision to take it off the market. The buyer had offered the asking price on the condition that we took it off as soon as the estate agent received evidence of their funds.
The house does need a few things doing to it, the main thing is a new boiler really. The one we have is ancient and we were going to get it changed but the estate agent said it wouldn't really add any value to the house. the two doors are still wooden, but the rest of the windows are nearly all UPVC that's still under guarantee.
Other than that there's a couple of bedrooms that still have the old style plaster with the lats so that could need doing and the kitchen is a few years old now.
We decorated it throughout last year before the sale. It does have quite a large garage attached to the front of the house that we built. Some people love it, others don't. I think it depends on whether you're into working on cars or DIY stuff.
We told the buyer at the viewing that we couldn't accept any lower as that was the minimum needed for us to move, but I often think they still might try it on to try and get you to borrow it from family or find it somehow.
I've explained at length to the estate agent that if they offer lower, it all falls apart and they get nothing.
If it weren't for the fact that we'd found a nice house sold by a nice vendor, the money we've already spent and our dislike for this area, a part of me might be alright with packing it all in so none of these incompetent idiots get another penny off us.

ohdarn

As an update.
When the estate agents told us about the valuation, they said the result would be back in 48hrs and if it matched the asking price, then the buyer would have their mortgage offer.
Of course no one has contacted us about the outcome so we rang them.
Turns out the buyer hasn't even submitted an application properly yet and they're taking their portfolio into the lender today and we'll know in four days the outcome.
As far as I can tell from a Google search, portfolio applications are difficult and subject to rigorous scrutiny to ensure the business can support that many houses having mortgages on them and reapplications are common.
I've no idea what to say to our vendor. We'll just have to tell them that after five months, all the paperwork is done, but our buyer actually doesn't have a mortgage and who the hell knows when or if, they'll get one.

caprikid1

"A landlord is attempting to purchase our property and their lender has arranged a valuation of our property for Tuesday."
Someone has lied. remarket and move on. This buyer cannot be trusted and is most likely unable to complete the sale.

ohdarn

caprikid1 said:

"A landlord is attempting to purchase our property and their lender has arranged a valuation of our property for Tuesday."
Someone has lied. remarket and move on. This buyer cannot be trusted and is most likely unable to complete the sale.

I would very much like to do this, but I don't think our vendor will be pleased if we tell them that we'd done that, as even if we sold straight away, it'll be more weeks and months before we get to the same point we're at now.
Does anyone know the process of a portfolio mortgage?
Does the work start on it before the portfolio is handed in, or does everything happen once that's been submitted?

dimbo61

I think BTL lenders have to look at the big picture.
Total number of properties ? Value of each property and LTV, Income of your buyer and by that I mean accounts over last 3+ years.
So the lender may lend 100% of the property value if your BTL buyer has a lot of equity in his other properties.

connors07

"A landlord is attempting to purchase our property and their lender has arranged a valuation of our property for Tuesday."
Stuff like that does make my blood boil. Buyer sounds very untrustworthy and possibly a ploy to get the purchase on the cheaper side. I'd love it if once an offer has been accepted there was a deadline for paperwork/searches to be submitted/organised; any renegotiating depending on what is found happens then. After that date both parties move x amount of £ into a holding account. When one or the other decide they haven't done something correctly which cause mess up the life of the other or just decides to opt out at the 11th hour, tries to get shave off 10k from the value at the last minute, opts to accept a higher offer elsewhere, doesn't clear the property as promised, takes something that was promised etc etc. Any of that nonsense the 'guilty' party voids the amount placed into the account and that goes to person or persons being messed around.

A lot has to be said about how property business is conducted in this country. 

I hope you get a resolution to your sale sooner rather than later.

AnotherJoe

Its a hard lesson to learn and i had to learn it the same way but waiting 5 months for your buyer to get a mortgage offer?

No way Jose, you should have booted to the kerb after maybe 8 weeks max (in current situation). I think i waited 3 months before it all fell apart  and that was at least a month too long to give them.

5 months is taking the michael if only because a professional BTL buyer would want to get cracking.

Most likely they are going to try and gazunder you shortly, if they arent a complete amateur / dreamer and just messing you about before you find out they cant get a mortgage

Be prepared to tell your buyer its fallen through.

And frankly if it was me id put it back on the market right now, if they are serious they can still beat any other buyer because they shoudl be ready to exchange within days, right?

I'm surprised your vendors havent given up on you..

ohdarn

dimbo61 said:

I think BTL lenders have to look at the big picture.
Total number of properties ? Value of each property and LTV, Income of your buyer and by that I mean accounts over last 3+ years.
So the lender may lend 100% of the property value if your BTL buyer has a lot of equity in his other properties.

It seems like rather than buy a couple of properties with large deposits, they've gone a bit nuts and bought a bunch, now they're trying to find mortgages for them all and this portfolio business is the only option.
That's a guess anyway.

ohdarn

connors07 said:

"A landlord is attempting to purchase our property and their lender has arranged a valuation of our property for Tuesday."
Stuff like that does make my blood boil. Buyer sounds very untrustworthy and possibly a ploy to get the purchase on the cheaper side. I'd love it if once an offer has been accepted there was a deadline for paperwork/searches to be submitted/organised; any renegotiating depending on what is found happens then. After that date both parties move x amount of £ into a holding account. When one or the other decide they haven't done something correctly which cause mess up the life of the other or just decides to opt out at the 11th hour, tries to get shave off 10k from the value at the last minute, opts to accept a higher offer elsewhere, doesn't clear the property as promised, takes something that was promised etc etc. Any of that nonsense the 'guilty' party voids the amount placed into the account and that goes to person or persons being messed around.

A lot has to be said about how property business is conducted in this country. 

I hope you get a resolution to your sale sooner rather than later.

Yeah there's got to be a better way of buying and selling houses than the current system.
I just can't understand how anyone could look at what we do and think 'yep, that's the best system we could come up with'.

ohdarn

AnotherJoe said:

Its a hard lesson to learn and i had to learn it the same way but waiting 5 months for your buyer to get a mortgage offer?

No way Jose, you should have booted to the kerb after maybe 8 weeks max (in current situation). I think i waited 3 months before it all fell apart  and that was at least a month too long to give them.

5 months is taking the michael if only because a professional BTL buyer would want to get cracking.

Most likely they are going to try and gazunder you shortly, if they arent a complete amateur / dreamer and just messing you about before you find out they cant get a mortgage

Be prepared to tell your buyer its fallen through.

And frankly if it was me id put it back on the market right now, if they are serious they can still beat any other buyer because they shoudl be ready to exchange within days, right?

I'm surprised your vendors havent given up on you..

We were unaware they still needed a mortgage. We were told that our buyer was sorting out his mortgage at the same time we were sorting ours out.
That's the last we'd heard of anything until the estate agent rang last week to say that a valuation needed booking.
Perhaps naively, we thought people sorted out their mortgage offer before the conveyancing work started and that if something was wrong, the estate agent would tell us.
It's been five months because that's how long the conveyancing work has taken (that's a different subject on how crap they've been).
In fact our buyer was asking a couple of weeks ago about a completion date, which is why we'd been chasing down conveyancers and getting things in order. 
Now everything's in order, they reveal they haven't got a mortgage.
And to make things worse, the estate agents are either terrible at their job or actively lying to us at this point.