Valuation

skasadiya

Hi All,

I have mortgage offer received from Halifax base on property price 230,000.

we are at inquiry stage  , solicitor have asked for my home-buyer survey report.

Which i gave them. 

According to home buy surveyor , property is only worth 220,000. 

Solicitors said , they are obliged to inform  this discrepancy to  lender.

Will this cause any problem ?

Kind Regards,

Salman

Slithery

Well do you have a good enough LTV to make up the difference or an extra £10k?

Have the Halifax done their own valuation?

canaldumidi

Not sure why you gave your solicitor your survey, unless there was something of a legal nature in it. And even if so, you could have simply sent that portion or query rather than the whole survey report.

The reason for not giving your solicitor the full report and valuation is that he also acts for your lender and, as you have now found out, having seen it he is obligated to inform them of any structural problems identified or valuation discrepancy.

Whether this will affect your mortgage will largely dependon your LTV. If you are borrowing an amount equal or close to the valuation given, the lender may be concerned. If you are borrowing a much smaller % they are unlikely to care.

user1977

I doubt it's a material enough difference for the lender to change their valuation - £220k vs £230k is the same ballpark, it's not as if one surveyor has discovered a major problem which the other one missed.

skasadiya

Slithery said:

Well do you have a good enough LTV to make up the difference or an extra £10k?

Have the Halifax done their own valuation?

Halifax done online valuation ? i don't understand why solicitors have to tell them as it home buyer survey.

skasadiya

canaldumidi said:

Not sure why you gave your solicitor your survey, unless there was something of a legal nature in it. And even if so, you could have simply sent that portion or query rather than the whole survey report.

The reason for not giving your solicitor the full report and valuation is that he also acts for your lender and, as you have now found out, having seen it he is obligated to inform them of any structural problems identified or valuation discrepancy.

Whether this will affect your mortgage will largely dependon your LTV. If you are borrowing an amount equal or close to the valuation given, the lender may be concerned. If you are borrowing a much smaller % they are unlikely to care.

They asked me and i provided. I did not this would cause problem.

My loan to value is 85% as i am putting 15 % deposit.

Kind Regards,

Salman Patel 

skasadiya

Slithery said:

Well do you have a good enough LTV to make up the difference or an extra £10k?

Have the Halifax done their own valuation?

Hi , they did online valution.

BalanceTransferDude

Solicitor doesn't need the survey report - mine specifically told me they're not in a position to do anything with it - it's for the buyer to use for any onward conversations. NatWest valued my property at what I had offered, the survey report had down valued it by £14k. I did send my survey report to my solicitor as I needed some guidance from him on something within the report and there's been no change to what I'm being lent by the bank.

skasadiya

BalanceTransferDude said:

Solicitor doesn't need the survey report - mine specifically told me they're not in a position to do anything with it - it's for the buyer to use for any onward conversations. NatWest valued my property at what I had offered, the survey report had down valued it by £14k. I did send my survey report to my solicitor as I needed some guidance from him on something within the report and there's been no change to what I'm being lent by the bank.

Did your solictors informed your lender ? My solicitor said they are obliged to report to lender ?

Tired of this honestly, i want it done and dusted

skasadiya

user1977 said:

I doubt it's a material enough difference for the lender to change their valuation - £220k vs £230k is the same ballpark, it's not as if one surveyor has discovered a major problem which the other one missed.

are you saying it will be allright.