Urgent Advice needed !

flaura

Hi

I need soem urgent advice - my partner is trying to buy his ex out of the mortgage and have her name removed form the deeds.

He's trying to borrow the extra money on the motgage

The mortgage companies surveyor (abbey national) have valued the property at 6k less!!! than the local estate agent who sells the majority of the properties in my town...

is there anything he can do to question the surveyors valuation the problem needs resolving ASAP as I am pregnant and waiting to move in and it won't be long before we have to tell her - we want her off the mortgage before she knows to save hassle

She currently thinks she's getting about 13k (what the estate agent says the property has gone up by in 3 years) but Abbey have said they'll only lend up to 7k extra on the basis of the surveyors valuation.

I am not going on the mortgage as he want's to be on it alone and my credit rating is shot to peices until 2011... so would end up with a considerably worse rate than he has now costing us more each month

Any advice would be greatly appreciated

Can anyone give any advice?

p.s she has never contributed to the mortgage bar £3k deposit (borrowed from her parents) or contributed to the bills which my partner matched she essentially lived in the house rent free for two and a half years.

ALIBOBSY

Unfortunately I would say in a falling market estate agents tend to over estmate and surveyors under estimate as they become more cautious. Abbey are unlikely to budge especially as the value of most properties is likely to fall in the next 12 months. All he could do is show his ex the survey and point out about the credit crunch. She must have seen the news. He could also point out if they sell up, they are likely to get even less and she will have a longer wait.
ali x

flaura

Funnily enough i just said the same to him....

However she is not the brightest and didn't even understand that she ahd to sign the paperwork to agree to being removed from the mortgage

She's only interested in the money...

I'll ask him to ask abbey for a copy of the survey - I suggested he should just tell her that's all she's getting as that's what the mortgage co have valued it at...

Looking at sold prices in the last year they are not wrong...the EA has over valued it...

~Beanie~

Sorry if I've got the wrong end of the stick but if the house has increased in value by £13K then surely she is entitled to half of this and not all of it?

flaura

sorry I wasn't very clear...

they say it's risen by 26k in three years - 13k is the half ?

or not as the surveyor says that it's only gone up by £14k not £26K

jill2002

The surveyors valuation is supposed to be if the house had to be sold quickly in the case of repossession. It is very difficult to make them budge. You have to do your homework and get information about similar houses that have sold in the area to back up your increased valuation.

They will not give you a copy of the valuation as it is for an additional loan - they should not really have told you the value that has been put on the property, although it is easy to work out if they will only lend £7k!

I assume the £7k would take you to 90% Loan to value? It may be possible at a push to move that up to 95% - talk to the mortgage advisor in the branch.

Markyt

You need to see whether the comparisons the surveyor has used are indeed comparable. You also might have a case if you find similar properties that sold recently for the price you are expecting.

flaura

Hi

After a bit of research yesterday we found that a property the same in the same street sold in January for £129k a grand more than the surveyor told the Abbey - the Abbey actually stated in the letter they sent to my OH that the surveyor had valued the property at the £128k (understandable as the halifax have just said that the market has dropped by 2.5%)

The last one that sold at the price that the EA quoted was June last year !! before everything got a bit wobbly in the market...

He tried to explain it to his ex last night but she really didn't understand it at all (she's not the sharpest knife in the drawer) to be fair it's better for us if he can only borrow the 7k not the 13k

we're going to see if there is another lender that will up the loan to value amount but i'm not holding out much hope for her (not that i was anyway)

I think she's just going to have to grin and bear it and take the money that he can borrow or face hanging about for six/twelve months until it sells and maybe still not get any more..!

Thanks for all the advice..!

homer_j_3

There is no point trying to increase the value as it works against you.

I would simply state to her that the lender believes that due to the market, the property is not worth what the EA put on value and as a result this is all they are entitled to.

If they feel that this is wrong, they can pay for a RICS qualified surveyor to value the property to see for themselves. It would only cost them a few hundred quid to get peace of mind you are not telling porkies.

The fact remains that she is part of the mortgage and could quite easily call the lender to ask whether the house has valued up at the EA price and if they say NO then that should be confirmation that you are doing the fair thing.

Honestly, for some people to say they do not understand this - I think even the butter knife would get this. It could be that she is playing dumb in hope you will do exactly what you are doing.

flaura

homer_j wrote: »

Honestly, for some people to say they do not understand this - I think even the butter knife would get this. It could be that she is playing dumb in hope you will do exactly what you are doing.

Nope she really is that stupid!! he tried explaining that they won't lend him more money than the property is worth but she doesn't get it...I think the dog understands more about it than she does (and the dog is pretty dumb)....sometimes i don't even know how she gets up in the morning without assistance..!

I'll suggest the RICS qualified surveyor thing to my OH she won't do that as she won't want to part with her money but at least he can use it in defence...

Rick62

Property prices are going down further. If she gets £7k she ought to be bloody grateful. I would tell her she can have £7k or nothing. Maybe she could understand that.