Son buying a new build, which has been undervalued for Shared Ownership

1969wolfie

There are always pitfalls of buying property and whether you’re buying a new or an old property, one of the frequent issues is that the mortgage valuation doesn’t match the price of the property. This is a problem that my son is currently experiencing whilst purchasing his first home, which is a shared ownership but also a new home, through Persimmon’s Staircase Scheme. 
As his mother, I’m trying to support him the best I can, however I do feel that his mortgage adviser has misadvised him. The property is on the market for £250k and he is purchasing 50% of this, however a recent valuation from the TSB has revealed that it has been undervalued by £25k. I’ve tried to find information relating to this and the internet suggests that he can appeal the valuation by providing supporting evidence, or opting for an independent valuation. However his mortgage advisor has said that this isn’t possible, as the TSB don’t allow either of these options.
Other than going down the route of another mortgage advisor, has anyone else experienced similar issues or have any further advice to offer. Many thanks.

GDB2222

Just to be clear, the valuer has valued it at £225k, and your son has agreed to pay £250k. So, either an experienced valuer is wrong, or an inexperienced first time buyer is. Which of them would you bet on?

Having said that, the valuer is valuing for mortgage purposes, and that is quite a conservative valuation. So, AN other valuer may well come up with exactly the same valuation. One issue is that new builds lose a bit of value as soon as they are occupied, so the lenders may be instructing their valuer to allow for that. 

JustinTime19

Have you considered the developer has over priced the property and the bank doesnt think it's value is what the developer thinks it's worth. Anyone can price a property doesn't mean it aligns with what RICS would value it at. I would tell the developer thats what the valuation came back at and see what they say. 

housebuyer143

Don't waste your time appealing the valuation, the broker knows what they are taking about - there is just no point as they won't change their minds. The internet might say they will, but in reality they trust their valuers.

Either try a different lender who uses a different surveying company or tell the developer and see if they will move on the price. New builds tend to be overpriced tbh. 

caprikid1

Potentially your son has dodged a bullet, not sure why the advisor should be blamed. Personally I think shared ownership only benefits house builders to keep house prices up, as has been identified here they also over value shared ownership property.