New Build - Mortgage Valuation lower than purchase price!! PLEASE HELP

Leyla27

although an old thread, it's been a great help. any further advice would be most welcome as our mortgage valuation has undervalued our part buy part rent place by £37,500!!! i cannot see that the builders will reduce by that much at all and there is no way we can find that much difference in order for our mortgage to be offered.

our valuation report from the building society came with a covering letter just saying 'report attached' - no information as to their position on being able/unable to offer us a mortgage. not sure of the way this sort of thing works as it's our first time.

anyone with any advice out there - much appreciated!

i've contacted the financial advisers dealing with our purchase who have sent a copy of our valuation report to the housing association we are buying from. they are now in the process of having to find comparable property sales in the area to justify their pricing to the valuers. not sure how that will happen. i knew it was overpriced but had no idea it was that bad!!

help please!

brit1234

Get a better non new build home instead.

SecondLegDownIsTheBigOne

Now is not the time to overpay.

poppy10_2

Leyla27 wrote: »

although an old thread, it's been a great help. any further advice would be most welcome as our mortgage valuation has undervalued our part buy part rent place by £37,500!!! i cannot see that the builders will reduce by that much

Why not? The house isn't worth what they are asking for it. Any other potential buyers will come up against the same issue with the valuation. Either they need to drop the price or you (and other buyers) walk away.

clairey22

Leyla27 wrote: »

although an old thread, it's been a great help. any further advice would be most welcome as our mortgage valuation has undervalued our part buy part rent place by £37,500!!! i cannot see that the builders will reduce by that much at all and there is no way we can find that much difference in order for our mortgage to be offered.

our valuation report from the building society came with a covering letter just saying 'report attached' - no information as to their position on being able/unable to offer us a mortgage. not sure of the way this sort of thing works as it's our first time.

anyone with any advice out there - much appreciated!

i've contacted the financial advisers dealing with our purchase who have sent a copy of our valuation report to the housing association we are buying from. they are now in the process of having to find comparable property sales in the area to justify their pricing to the valuers. not sure how that will happen. i knew it was overpriced but had no idea it was that bad!!

help please!

Hi,

Glad you found my thread helpful...my advice would not be to pay more than what the mortgage company would be prepared to lend.

The end of my story is that as you know we paid £205,000 for the property in 2008 and we sold it this September for.....£205,000 ! So I am so glad I took the advice that was given to me to haggle with the developers for a discount on the price.

I guess it does depend on how long you plan to live there though...we ended up moving earlier than planned as we were on a massive development and it was getting a bad name for itself and we wanted to move to a nicer area.

We are no doubt going to go through it all again as we are offering on a property tomorrow...although not a new build - don't think I would go through that again (2 years of chasing snagging issues was not fun!)

Good luck with it all!

Clairey

pioneer22

clairey22 wrote: »

Hi,

Glad you found my thread helpful...my advice would not be to pay more than what the mortgage company would be prepared to lend.

The end of my story is that as you know we paid £205,000 for the property in 2008 and we sold it this September for.....£205,000 ! So I am so glad I took the advice that was given to me to haggle with the developers for a discount on the price.

I guess it does depend on how long you plan to live there though...we ended up moving earlier than planned as we were on a massive development and it was getting a bad name for itself and we wanted to move to a nicer area.

We are no doubt going to go through it all again as we are offering on a property tomorrow...although not a new build - don't think I would go through that again (2 years of chasing snagging issues was not fun!)

Good luck with it all!

Clairey

What snaggling issues?

geoffky

Clairy,,,, you dodged a bullet then...god help people buying new build on these government schemes (scams) they will get slaughtered.And most will be too thick to work out why...

Newbuilds near me....280k 2007 phase 1
Newbuilds near me 185k 2011 phase 3

OH DEAR!

clairey22

pioneer22 wrote: »

What snaggling issues?

The things I now know that you come to expect with new builds

In my case the things I can remember off the top of my head (with pregnancy brain)...

Whole road had to be resurfaced as it was not level and flooded.
Faulty hot water tank
Faulty boiler
Faulty washing machine
thermostat not connected to anything
pipe for bath water not connected so leaked
fire sprinkler system (needed for building regs) pipe not connected so leaked
walls not level in lounge so you could not put up a shelf (they had to replace plasterboard)
scratches all over patio doors
faulty patio doors leaking (doors were replaced 3 times!)
Front door gaps at bottom and bowed
window ledges cracked and rotted (house was empty for a year before we moved in and they had not been treated).
tiles have score marks on them needed replacing
bathroom tiles put in kitchen and vice versa so didn't match
plastic panel below shower missing

All the faulty things seemed to happen to everyone I spoke to in the road so maybe they got a bad batch!

Oh and no parking space (that came with the house) for not sure how long...probably 18 months. Which was an issue having knowhere to park due to parking restrictions (clamping) on the development.

Clairey