Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • ksamkange
    • By ksamkange 10th May 18, 11:23 PM
    • 4Posts
    • 0Thanks
    ksamkange
    Shared ownership valuation differences between the purchaser and sellers report - help!
    • #1
    • 10th May 18, 11:23 PM
    Shared ownership valuation differences between the purchaser and sellers report - help! 10th May 18 at 11:23 PM
    I'm currently in the process of purchasing a shared ownership 2 bedroom property, I had my valuation report done by my mortgage lender (HSBC), but valuer has downvalued the property by over £40k. As a first time buyer, Iím concerned with the significant difference between the actual valued price of the property (£255,000) by my lender and the agreed price which was done before the valuation (£296,000 based on 50% shared ownership). If possible please, can someone advise me on what I should do as the sellers valuer valued the property at £300,000 despite the report having several discrepancies of sold properties around the surrounding area.

    Thanks,
Page 1
    • Cakeguts
    • By Cakeguts 10th May 18, 11:39 PM
    • 5,106 Posts
    • 7,706 Thanks
    Cakeguts
    • #2
    • 10th May 18, 11:39 PM
    • #2
    • 10th May 18, 11:39 PM
    Your lender is saying that they will only lend you an amount based on their valuation. This is to protect the lender in case you default don't pay the mortgage and they have to repossess and sell the property.

    If you want to buy this particular property and the sellers are not prepared to reduce the price to what your bank will lend you then you have to put down the extra £40k as part of a bigger deposit.

    I don't know what would happen if you tried a different lender. If you keep getting the same valuation that is low then you won't be able to afford the property at the price they are asking.
    • ksamkange
    • By ksamkange 10th May 18, 11:45 PM
    • 4 Posts
    • 0 Thanks
    ksamkange
    • #3
    • 10th May 18, 11:45 PM
    • #3
    • 10th May 18, 11:45 PM
    The agency also valued the property at £260,000 which correlates more with my lender's valuation of £255k. There is only one anomaly out of the three valuations made which is the seller's valuation which is worrying as I'm not sure if the seller's report is reliable enough for me to try other lenders...
    • Cakeguts
    • By Cakeguts 10th May 18, 11:54 PM
    • 5,106 Posts
    • 7,706 Thanks
    Cakeguts
    • #4
    • 10th May 18, 11:54 PM
    • #4
    • 10th May 18, 11:54 PM
    The agency also valued the property at £260,000 which correlates more with my lender's valuation of £255k. There is only one anomaly out of the three valuations made which is the seller's valuation which is worrying as I'm not sure if the seller's report is reliable enough for me to try other lenders...
    Originally posted by ksamkange
    So it looks as if the seller is trying to sell this property for a lot more than anyone will ever be able to get a mortgage for. How long has the property been on the market for because sometimes this will give you an indication of the seller having unrealistic expectations?

    Do you know if there have been any other offers and sales that have fallen through?

    If all else fails you will need to find a different property.
    • ksamkange
    • By ksamkange 11th May 18, 12:09 AM
    • 4 Posts
    • 0 Thanks
    ksamkange
    • #5
    • 11th May 18, 12:09 AM
    • #5
    • 11th May 18, 12:09 AM
    The property has been on the market since January and the seller had already two other offers fallen through - one didn!!!8217;t meet the requirements financially and the last offer before me pulled out according to the agency. I!!!8217;ve tried to renegotiate with the seller to £260k but he still feels that his valuation is right !!!55357;!!!56904;. So you maybe right in terms of me looking for other properties although it!!!8217;s a shame because I did fall in love with the property.
    • the_quick
    • By the_quick 11th May 18, 9:02 AM
    • 72 Posts
    • 41 Thanks
    the_quick
    • #6
    • 11th May 18, 9:02 AM
    • #6
    • 11th May 18, 9:02 AM
    When we were selling our SO property we had to provide Housing association with RICS valuation. Just wonder if you seller has done similar - if so that is why he sticks to his price. But it is very strange there is such a huge difference
    • ksamkange
    • By ksamkange 11th May 18, 11:22 PM
    • 4 Posts
    • 0 Thanks
    ksamkange
    • #7
    • 11th May 18, 11:22 PM
    • #7
    • 11th May 18, 11:22 PM
    Thanks, the seller just came back and the RSIC valuation has been revised due to the discrepancies from the first report. The valuation changed from £300,000 to £270,000. However, it still seems the valuation is based on the same principles as the last which continues to worry me that the figure is being manufactured ever so slightly... any advise? The agency valued the property at £260,000 and my lender valued it at £255,000
    • Cakeguts
    • By Cakeguts 12th May 18, 11:36 AM
    • 5,106 Posts
    • 7,706 Thanks
    Cakeguts
    • #8
    • 12th May 18, 11:36 AM
    • #8
    • 12th May 18, 11:36 AM
    Well you and they have two choices. Either they lower the price to match what you can borrow so that you can afford to buy it. Or you walk away and find somewhere else that has a realistic sale price.

    The point is that no one is going to be able to buy this property because the lender valuations are all going to come back lower than the sale price so either the seller lowers the price or they don't sell it.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,280Posts Today

8,651Users online

Martin's Twitter
  • RT @Pownerpuff: @MartinSLewis thanks to your guidance, my monthly outgoings (bills) are £400 cheaper PER MONTH than they were 2 years ago!!?

  • The programme is primarily aimed at parents not kids. But I think mid teens upwards is likely fine https://t.co/SIJczfKJW8

  • Even if u don't have kids, Id love u to watch my 10 things ur kids need to know doco tonight ITV 9pm. It mixes mone? https://t.co/YIqNbllX8h

  • Follow Martin