Down-valuation

Mr_Greg

I need some advice on how to tackle the issue of the down valuation of the property by a lender. 

Recently I've applied for a mortgage at Santander (new build), but a valuer down-valued the property from 298 K to 255 K (-43 K which is an equivalent of 15 % less than the price I was offered).

Of course, at this stage, I thought I had to renegotiate the price.
I found that without it I would not get a lower interest rate as the bank does not see it as a good investment.

Does anyone has had experience?

I believe there's no point to proceed with the purchase but before waking out from that deal or submitting another mortgage application, the offer and the price for the property should be revised...

kingstreet

You are unlikely to see that level of price reduction by a developer without attempting a new application with a different lender/surveyor.

Is it a new development, or have there been earlier valuations?

Was the valuation done by LGSS or a different firm?

Mr_Greg

This is a new development. I believe the first valuation was done by a devloper’s Surveyor (not sure what firm). Maybe lenders were doing desktop valuations for other properties in that development without visiting due to quarantine guidlines. Santander sent its Surveyor to the property before the final assessment this time. 

Noneforit999

Have other properties on the development sold for similar prices to what you are paying? 

I guess your options are to challenge the valuation and provide several other properties on the development which are the same as yours and sold for the higher prices if you can OR try a different lender. 

Thrugelmir

Is the property built yet? 

Mr_Greg

Yes, ready to move in