new build survey 12,500 under selling price for first time buyer help please

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suzikettles
suzikettles Posts: 32 Forumite
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in Mortgages & endowments
son is hoping to buy a 1 bedroom flat he has help from forces help to buy scheme. All was going well until the valuation of the property which is a new build and will be ready shortly.

The valuation was by a local surveyor (Highlands) for Barclays bank mortgage one of the only providers that lend on 15% for new builds I believe.
The surveyor valued the one bed flat at 12,500 below the selling price without even setting foot into it. It was done off a plan and I know he was not allowed access due to the building process.
I have spoken to the developers - there have been over 30 properties (this is the first stage of building) sold and all have been valued at or very near asking price. The upstair flat (identical apart from the fact that sons flat has a self contained door) was a cash buy at asking price is this good or bad if we were to try and put forward an appeal to Barclays or the surveyors
Is there any appeal process for this????? He has a broker
Any other lenders that lend at 15% for new builds???
Or do you think that he will have to walk away from this due to one mans opinion??

Thanks

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  • Sheep
    Sheep Posts: 219 Forumite
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    This happened to us. We ended up having to go with another lender
  • suzikettles
    suzikettles Posts: 32 Forumite
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    well according to his broker there are NO other lenders offering 15% deposit for a new build self contained flat
    Unless anyone else out there knows any different!!

    its so annoying- the surveyor didnt even step into the place and the identical flat on the development was a cash sale which surely proves that there is a demand?????
  • brit1234
    brit1234 Posts: 5,385 Forumite
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    suzikettles wrote: »
    its so annoying- the surveyor didnt even step into the place and the identical flat on the development was a cash sale which surely proves that there is a demand?????

    Do you really want your son to overpay? Help to buy is designed to help the builder increase prices, it doesn't really help the buyer, hence it being called Help to Sell by economists. With the housing market turning do you really want your son to be in negative equity. Use the valuation to haggle the price down.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • suzikettles
    suzikettles Posts: 32 Forumite
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    wont haggle down as the buyer of the identical flat upstairs has already paid cash, so therefore they believe the price is correct and there is a market for them at selling price.
  • kingstreet
    kingstreet Posts: 38,788 Forumite
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    brit1234 wrote: »
    Do you really want your son to overpay? Help to buy is designed to help the builder increase prices, it doesn't really help the buyer, hence it being called Help to Sell by economists. With the housing market turning do you really want your son to be in negative equity. Use the valuation to haggle the price down.
    Forces HTB is an interest-free loan from employer not shared equity and not restricted to newbuild.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • suzikettles
    suzikettles Posts: 32 Forumite
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    hes got the forces help to buy but has been told that he earns too much for the scottish gvt help to buy scheme as flat is 122000
    looks like he will have to withdraw as his broker could only find him a barclays deal with a 15% deposit, and no other lender

    I just dont understand how a surveyor could say there is a potential for no market with the identical flat selling as a cash buy - surely that disproves the surveyors theory??

    Also there is absolutely no comeback and no appeal, we dont even get to see the report, the guy stood outside its a bit of a joke really unfortunately at sons expense
  • waamo
    waamo Posts: 10,298 Forumite
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    A cash buyer may have more money than sense. In that case they may have well overpaid. They won't have had a valuer look over it in all probability.
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