Mortgage Survey at £15k less! HELP!

clareo_2

We have a mortgage promise with Alliance and Leicester at 5.94% (now 6.24%) for a house we're buying for £120k, as first time buyers. 2 months ago the house was valued at £125-£130k by 3 separate estate agents. Now the valuation from the 'independant surveyors' through Alliance and Leicester have come back saying it's only worth £105k!! Where on earth do we go from here? We're reliable customers putting down 10% and paying all charges up front. So even when people can raise the cash and have no debt or outgoings whatsoever, you still can't get a mortgage as the next ploy to stop you is with under-estimating your house hugely!! I would be most grateful for suggestions as to what to do next.

neas

some people are so naive . It brings a tear to my eye.

Have you considered that the independant survey is actually correct? Estate agents have an annoying characteristic of over surverying somewhere, a survery 3 months ago would be worth more but the market is falling houses are falling.

Your house is gonna FALL in a declining market.

The lenders are protecting THEIR money, by valuing a house realtically if anything.

Commonsensesearcher

3 options IMO:

1. Pull out and rent whilst saving a bigger deposit.
2. Borrow the extra cash required to top up your deposit
3. Go back to the seller and ask for a further reduction.

I'd go for 1 myself but we're all different. But my advice to anybody would be to avoid option 2... If you really must buy then option 3 is the one. As I say above, all in my opinion!!!

dubsey

Did the surveyor note any faults or was it literally just down to price?

I'm afraid this is starting to happen more now. Have you told the EA yet? It may not seem like it right now, but they have actually done you a favour in stopping you from buying at a price the property isn't worth. The EA 'valuation' is really the price they think someone will be tempted to purchase at. The surveyor will put a value upon it.

Someone did say something on here about having the valuation re-done, but you need to seriously ask yourself if you'd now be happy paying the original amount for it.

Butterfliesarepretty

Is the survey value because of faults with the house??

I agree with other poster - est agents always overvalue houses, I always stick to what I think its worth, using the price of houses around me that are up for sale. I sold an ex council house seven years ago and the estate agent wanted to put it up for £55,000, it had very old carpets, a basic installed kitchen I put in, central heating, double glazing but the decor and the electrics were really old so I knew the survey may pick up these things and others. So I put it up at £48,000 as the houses around were not attractive as they had tenants. In the end a couple wanted the house so much they offered £50,000 so I took it.:D

My present house was up for £35,000 and the survey revealed that it needed a re-wire, damp proof treatment, and a cypress tree removed from the front. So it was valued at £31,000. I took the mortgage on retention for the damp proofing which is now done, and now I am to attempt to get the re-wire done and my dad removed the tree. Mine was a basic survey and they were right about the valuation. If I was to sell it in future I am guessing at most £70,000 with prices going down - two bed terraced, as I will still get my money spent on it back.:D

Dick_here

Yes, you'd expect the sellers to be unhappy if a surveyor values down a property, not the buyer !

I'd go back to the seller stating this is the current value of your property and reduce your offer accordingly, put the ball in their court.

With all this HIP business now, wouldn't it be a good idea to have each property surveyed and given an 'official' value up front rather than just going by the EAs opinion of a sale price? It'd put EAs out of a job, but that's no bad thing after all...

Gambler

I offered full asking price of £250K for a house a few months back. Had our own independent homebuyers report done and it valued the house at £200K.

The vendor wouldn't budge and it is still up for sale.

Turned out okay for us in the end as we have now found another house at the same price in a much better location with the schools we wanted etc.

Sooler

It's a buyers market - Revise your offer to £105K or walk away.

3 months ago people could walk in off the street and get a 100% mortgage, this is no longer the case.

Snooze

clareo wrote: »

We have a mortgage promise with Alliance and Leicester at 5.94% (now 6.24%) for a house we're buying for £120k, as first time buyers. 2 months ago the house was valued at £125-£130k by 3 separate estate agents. Now the valuation from the 'independant surveyors' through Alliance and Leicester have come back saying it's only worth £105k!! Where on earth do we go from here? We're reliable customers putting down 10% and paying all charges up front. So even when people can raise the cash and have no debt or outgoings whatsoever, you still can't get a mortgage as the next ploy to stop you is with under-estimating your house hugely!! I would be most grateful for suggestions as to what to do next.

A&L are doing you a favour. In 12 months time the house will be worth half that anyway (and probably still for sale) so sit tight, keep renting and watch the market plummet.:j

Rob

Dan_Collins_2

If you really want to buy you need to look in to this a little more.

Estate agents in the area I work are still not lowering prices. They are trying to get as many properties on the books as pos, as they say the more @@@@ you fling at the wall the more @@@@ sticks!!

If you think that the property will probably not go above the stamp duty limits and £105 for house is very cheap, then again I dont not the area you live in!

I know its not what you want to hear, but, I would try for a lower offer or walk away!

Have a look at www.rightmove.co.uk but not the sale prices, the sold prices. Try and find out what they have sold for.

Dan_Collins_2

Ps. House prices will not half unless unemployment goes pop and nobody else moves to the UK!