House price question

mr.broderick

Markyt wrote: »

As does the old its / it's dilemma ...

Nooo..not another one..

EdInvestor

thecrater wrote: »

Today, however, I received my mortgage offer from the bank and when I looked through the details of the offer I noticed that the property valuation was £170,000 which is £3000 less than what I have offered. As I haven't yet received the valuation report myself I’m a little worried about what this means for the future when I decide to sell the flat.

The main cause for concern about a valuation lower than the asking price is that

a) there is something seriously the matter with the property which you have missed and the surveyor has picked up
and/or
b) that you will not be able to raise a large enough mortgage to buy it.This is because the lender will base its calculations on the surveyor's valuation.Thus if its policy is to lend a maximum of 90% LTV (loan to value), it will only lend you 153,000, not 155,700 on the basis of this valuation and thus you will have to find extra money for your deposit.

But this valuation is very close to the asking price, so there should be no need for concern about either of these matters unless you are exceedingly strapped for cash. Such a small difference also doesn't really offer much scope for negotiation with the vendor.

It will have no effect on your eventual sale of the property.

fimonkey

Markyt wrote: »

As does the old its / it's dilemma ...

Perhaps there should be a seperate thread entitled "examples of bad grammar/typo's etc" so the purists amongst you/us have somewhere to hang out.

poppy10_2

fimonkey wrote: »

"examples of bad grammar/typo's etc"

Apostrophe abuse. Very cruel.

Davesnave

Perhaps there should be a seperate thread

.......called The Separate Thread?

carpmaster

I can't see why you're worrying about paying £173,000, when the surveyor thinks it's only worth £170,000. What's £3000?

Your post implies that you are worried that should you buy, you're in £3000 negative equity already. Considering that in a few years the flat will probably be worth about £119,000 (assuming 30% reduction as is widely predicted for flats) then you'll soon realise £3000 here or there is meaningless.

carolt

How about a new sticky on spelling for those wishing to post on the forum?

carolt

carpmaster wrote: »

I can't see why you're worrying about paying £173,000, when the surveyor thinks it's only worth £170,000. What's £3000?

Your post implies that you are worried that should you buy, you're in £3000 negative equity already. Considering that in a few years the flat will probably be worth about £119,000 (assuming 30% reduction as is widely predicted for flats) then you'll soon realise £3000 here or there is meaningless.

He does have a very good point, you know.

PasturesNew

I think every £1 saved is important.
And £3000 would pay your fees et al.

Walter_J

You are about to make the most disasterous mistake of you life and you a quibbling about 3 grand?

No-one with half a brain in their head would even consider buying a house at the moment - never mind a flat!!!

Values have fallen by around 10% since September and the falls are picking up speed. THAT is why your valuation has come in below the agreed price!

Walk away - NOW!!

Carry on renting for 3-4 years, saving a deposit in the meantime, and you will be able to pick up a flat like this for well under £100k. Buy now on a big mortgage and you will be trapped there by negative equity for 10-12 years - assuming you will be able to keep up the mortgage payments when they reset to the SVR in a couple of years time.

This is serious - WALK AWAY!