Valuation Higher Than We Are Paying

lucasmum

Hi, We are in the process of buying a shared ownership house. We have been told by the HA that an independant valuer has valued it at £165,000. Therefore our 35% being £57,750. We are applying for a Halifax 97% so £56,000 mortgage.

Halifax have just sent us a letter saying that their valuer has valued it at £185,000. Does that mean in their eyes we are on less LTV as we only need £56,000 for our mortgage?

Also am I right in thinking that it might do us a favour in two years when our tracker finishes. If they have valued it £20,000 higher now we have less chance of being seen as in negitive equity as if prices keep coming down it mught still be higher than we have paid for it? This was one of my worries about buying at this point but if we don't go for this now we will never get on the ladder!

Thanks in advance

SpendCurber

I'm in a slightly similar situation - esp re the valuation....

Anyone care to chime in????

Dan_Collins_2

Well this is new to me in this market, however, most lenders will take the lower of the val or the purchase price. The lender should confirm.

marvin

Don't think its that unusual in cases of right to buy and the like.

My council house was valued at £85,000 by the independent valuer and £95,000 by the mortgage companies valuer.

They took the figure that the mortgagers valuer placed on it for the value.

Dan_Collins_2

Is it Shared ownership or right to buy OP??