Property Downvalued by surveyor by £10k - where to go from here?

Thrugelmir

jst1986 said:

Its very much a sellers market at the minute so values are up and the mortgage providers haven't kept track. 

That's why mortgage lenders contract valuations out to independent surveyors. Who'll be totally on the ball with regards to recently sold prices in the area. 

If people themselves want a particular house and wish to fund the difference. That's entirely down to them. 

fewcloudy

Natrc said:

Thank you, sadly we are at 90% LTV already so no room to move on that front unless we want silly interest rates at 95% LTV.

Fingers crossed as you say! 

@Natrc

I would be inclined to spend a bit more time considering just what that actually means to you each month on your mortgage payments, and for how long?

It would not be "silly interest rates" for the lifetime of your mortgage; maybe just for a couple of years?

Tell us the actual interest rates/fees/duration of the various products available to you at 90% and 95% LTV, it might be that you do in fact have "room to move.

Natrc

fewcloudy said:

Natrc said:

Thank you, sadly we are at 90% LTV already so no room to move on that front unless we want silly interest rates at 95% LTV.

Fingers crossed as you say! 

@Natrc

I would be inclined to spend a bit more time considering just what that actually means to you each month on your mortgage payments, and for how long?

It would not be "silly interest rates" for the lifetime of your mortgage; maybe just for a couple of years?

Tell us the actual interest rates/fees/duration of the various products available to you at 90% and 95% LTV, it might be that you do in fact have "room to move.

Our mortgage broker spoke to me today and told me that he approached the lender initially for an agreement in principle at 95% LTV (as a worst case scenario), and they said they would offer us 90% or less only, so 95% with this lender is not an option. Currently on 90% LTV with a 2.45% interest rate (or something very similar) the payments are around £580pm on a 35 year term. We are safety netting initially because I am hoping to go onto maternity leave in the next year or so, so want a longer term with lower payments for when this happens, and we will overpay when I am still working. We are very very limited with lenders due to mine and my husbands work contracts/circumstances and my husbands previous credit issues (hence the slightly higher interest rate currently). 

We have the cash to meet in the middle (with a little help from my husbands parents). The property is not worth more than £180,000 to me. This has been solidified by another agent putting a property just around the corner (ex-council, same size with bigger garden and bigger driveway) for £175,000 asking price, so I genuinly think £180,000 is all the house is likely to be worth to me right now (and thats because we absolutely love it). 

We are currently awaiting a response from the sellers, but it seems the estate agent is trying to convince them to go back to market to try and get full asking price, even though I know with good certainty that the valuation will be the same next time as the comparibles say it all really. We hope we will hear by the end of the day because the wait is exhausting, especially as our solicitors are hounding us for documentation and to get going on the process (they have already spoken and started legal documentation exchange/writing with our sellers solicitors so things are very much underway here). 

sheffield_soldier

Natrc said:

fewcloudy said:

Natrc said:

Thank you, sadly we are at 90% LTV already so no room to move on that front unless we want silly interest rates at 95% LTV.

Fingers crossed as you say! 

@Natrc

I would be inclined to spend a bit more time considering just what that actually means to you each month on your mortgage payments, and for how long?

It would not be "silly interest rates" for the lifetime of your mortgage; maybe just for a couple of years?

Tell us the actual interest rates/fees/duration of the various products available to you at 90% and 95% LTV, it might be that you do in fact have "room to move.

Our mortgage broker spoke to me today and told me that he approached the lender initially for an agreement in principle at 95% LTV (as a worst case scenario), and they said they would offer us 90% or less only, so 95% with this lender is not an option. Currently on 90% LTV with a 2.45% interest rate (or something very similar) the payments are around £580pm on a 35 year term. We are safety netting initially because I am hoping to go onto maternity leave in the next year or so, so want a longer term with lower payments for when this happens, and we will overpay when I am still working. We are very very limited with lenders due to mine and my husbands work contracts/circumstances and my husbands previous credit issues (hence the slightly higher interest rate currently). 

We have the cash to meet in the middle (with a little help from my husbands parents). The property is not worth more than £180,000 to me. This has been solidified by another agent putting a property just around the corner (ex-council, same size with bigger garden and bigger driveway) for £175,000 asking price, so I genuinly think £180,000 is all the house is likely to be worth to me right now (and thats because we absolutely love it). 

We are currently awaiting a response from the sellers, but it seems the estate agent is trying to convince them to go back to market to try and get full asking price, even though I know with good certainty that the valuation will be the same next time as the comparibles say it all really. We hope we will hear by the end of the day because the wait is exhausting, especially as our solicitors are hounding us for documentation and to get going on the process (they have already spoken and started legal documentation exchange/writing with our sellers solicitors so things are very much underway here). 

In this case I would stand your ground with your maximum you would like to pay. I would demand also a quick answer so that you can move on to another property. I would also emphasise that other people will have the same issue and show other properties of the correct valuation.

Natrc

sheffield_soldier said:

Natrc said:

fewcloudy said:

Natrc said:

Thank you, sadly we are at 90% LTV already so no room to move on that front unless we want silly interest rates at 95% LTV.

Fingers crossed as you say! 

@Natrc

I would be inclined to spend a bit more time considering just what that actually means to you each month on your mortgage payments, and for how long?

It would not be "silly interest rates" for the lifetime of your mortgage; maybe just for a couple of years?

Tell us the actual interest rates/fees/duration of the various products available to you at 90% and 95% LTV, it might be that you do in fact have "room to move.

Our mortgage broker spoke to me today and told me that he approached the lender initially for an agreement in principle at 95% LTV (as a worst case scenario), and they said they would offer us 90% or less only, so 95% with this lender is not an option. Currently on 90% LTV with a 2.45% interest rate (or something very similar) the payments are around £580pm on a 35 year term. We are safety netting initially because I am hoping to go onto maternity leave in the next year or so, so want a longer term with lower payments for when this happens, and we will overpay when I am still working. We are very very limited with lenders due to mine and my husbands work contracts/circumstances and my husbands previous credit issues (hence the slightly higher interest rate currently). 

We have the cash to meet in the middle (with a little help from my husbands parents). The property is not worth more than £180,000 to me. This has been solidified by another agent putting a property just around the corner (ex-council, same size with bigger garden and bigger driveway) for £175,000 asking price, so I genuinly think £180,000 is all the house is likely to be worth to me right now (and thats because we absolutely love it). 

We are currently awaiting a response from the sellers, but it seems the estate agent is trying to convince them to go back to market to try and get full asking price, even though I know with good certainty that the valuation will be the same next time as the comparibles say it all really. We hope we will hear by the end of the day because the wait is exhausting, especially as our solicitors are hounding us for documentation and to get going on the process (they have already spoken and started legal documentation exchange/writing with our sellers solicitors so things are very much underway here). 

In this case I would stand your ground with your maximum you would like to pay. I would demand also a quick answer so that you can move on to another property. I would also emphasise that other people will have the same issue and show other properties of the correct valuation.

That is the plan, my husband is going to call the estate agents up just before they close this evening. If we do not have an answer tonight I am going to call them up first thing tomorrow and advise that our offer will only be valid for the next 24 hours because we want to get moving and if they do not give us an answer we will start looking for other properties. 

Realistically though, we have actually decided to put the property search on hold if this house falls through. I have a professional exam in january that I need to do a significant amount of preparation for, and I can barely focus because of all the stress that is going on, I definetly cannot go through this all again until I have sat the exam now. That is also why I am so keen to just get on with it. 

Natrc

Update for everyone, good news thankfully!!

The estate agents just got back to us and we have agreed a new sale price of £177,500!!

The sellers were initially a little reluctant, but the agent explained that this will likely happen again with another buyer, and said that we dont really have the funds to stretch any further (which is what we told them), and they have agreed to keep the sale alive as its now in later stages. 

Relief is an understatement, and we have saved £7500

jst1986

Great news! 

diggingdude

Fantastic news. Fingers crossed for you all. I hope estate agent is compensating the sellers for their over optimistic pricing to get the business

Thrugelmir

Natrc said:

fewcloudy said:

Natrc said:

Thank you, sadly we are at 90% LTV already so no room to move on that front unless we want silly interest rates at 95% LTV.

Fingers crossed as you say! 

@Natrc

I would be inclined to spend a bit more time considering just what that actually means to you each month on your mortgage payments, and for how long?

It would not be "silly interest rates" for the lifetime of your mortgage; maybe just for a couple of years?

Tell us the actual interest rates/fees/duration of the various products available to you at 90% and 95% LTV, it might be that you do in fact have "room to move.

This has been solidified by another agent putting a property just around the corner (ex-council, same size with bigger garden and bigger driveway) for £175,000 asking price, 

Have you viewed it?  Hardly surprising your vendor has reduced their price.