Nationwide down valued

Seanj123

So had an offer accepted, for 220k deposit of 22k. Nationwide valuations have come back with 200k value and for a damp and timber survey.. 

on my mortgage illustration it has said the house must be a min value of 208k. 

So where do I go from here? What would I need to re negotiate price to get nationwide to accept? 

Would offering to meet in the middle at 210k then be enough to bring nationwide min value price below 200k so they accepted it

mi-key

It depends how desperate the seller is to sell and if they have any other offers.

Renegotiating with the seller won't make any difference to Nationwides valuation, they will still say it is worth £200K no matter what you are paying for it.

Really it is up to you to find the difference, not for them to reduce their price any more because you are short on the funding.

MultiFuelBurner

The only thing in your favour is the potential lull in the market.

No harm sharing this information and seeing if you can come to some arrangement.

mi-key

It can also be worth trying another lender as their valuation may come back differently anyway, and they may be prepared to lend you what you need

custardly

MultiFuelBurner said:

The only thing in your favour is the potential lull in the market.

No harm sharing this information and seeing if you can come to some arrangement.

This, you need to test the bottom out.

Seanj123

If they were to budge to £210k will nationwide lend me that amount or will they no longer go above 200k from
now on 

mi-key

They won't lend you £210K on a house valued at £200k.

But if the seller dropped to £210K and you have a £22K deposit, then your mortgage would be for £188K on a house valued at £200K so they may be ok with that.

That all depends really on if the seller will drop another £10K though 

Seanj123

That may well be the road Il have to attempt to go down, I can’t see the vendor dropping by 20k that would be 25k on original asking price 

Grizebeck

MultiFuelBurner said:

The only thing in your favour is the potential lull in the market.

No harm sharing this information and seeing if you can come to some arrangement.

Think that depends where you live....

RelievedSheff

Seanj123 said:

That may well be the road Il have to attempt to go down, I can’t see the vendor dropping by 20k that would be 25k on original asking price 

It isn't really up to the vendor to find your shortfall in funding!

You have offered what you thought the property was worth and now you can't fund that.

You can ask for them to accept a lower offer but they are under no obligation to accept it.

You can try a different lender and hope they come up with a different valuation. Or realistically you need to be looking at properties that are cheaper and that you can raise the funding on.

housebuyer143

Seanj123 said:

That may well be the road Il have to attempt to go down, I can’t see the vendor dropping by 20k that would be 25k on original asking price 

You don't know unless you ask. It's a hard market and maybe they will see this as an ongoing issue with future buyers as most people are not looking to pay more for a house than it's worth.
Go in at £200 and go from there. No point being £210 agreed if you still can't get the mortgage because you don't have enough funds to make up the difference. As your lender states you must get the house for £208k to get that mortgage (assume you have a 10% deposit) unless you have more deposit stashed away.