Topic ID 4577
So anyone else ever had the mortgage valuation survey and the accepted offer price very very different?
Reply ID 65612
My experience on a remortgage is that mortgage valuations are very conservative and, notwithstanding the supposed upturn in the property market, have got worse in the last six months.
Reply ID 65636
Had heard of it on remortgages but its just happened to us on a new mortgage, so no way we can go ahead and buy the house we wanted. Think its indicative perhaps of the lack of houses in Hertford and the vendors thinking they will get whatever they ask for them. Real shame and its made us very wary of what we will offer in future to spare the expense of the survey. People be warned!
Reply ID 65640
this happenned to my friend and he just upped the deposit in order to make up the difference
Reply ID 65644
Sadly we don't have a spare 40K and the stamp duty on top boo...
Reply ID 65652
quote:Your posts suggest that you agreed with the vendor on the price when making your offer and it has often been said that a house will always be worth what someone is willing, and can afford, to pay for it. Unfortunately for you, you have found that what a lender is prepared to loan out does not necessarily match a buyer's willingness with affordability. Disappointing as this will be for you, this is not the fault of the vendor and I am sure they will also be disappointed that you have been unable to raise the capital to afford the price you had agreed. As your agreed price is higher than the mortgage valuation, this suggests you have budgeted for and can afford to repay a higher amount than the mortgage lender will lend to you. Have you considered the affordability of a secondary, unsecured loan to bridge the gap that you could then offer as part of an increased deposit? Whilst this type of secondary borrowing is more expensive than mortgage loans, it might help you secure the house you wanted - depending, of course, as to whether you still believe in its worth. Alternatively, some lenders such as Intelligent Finance were at one time offering mortgages with an additional guaranteed reserve loan amount, purportedly to enable furnishing. If the reserve was called on, the financing was at the same rate as the original mortgage. I don't know if they, or others still offer this type. Whatever you decide, good luck Tiny.
Originally posted by Tiny
. . . the vendors thinking they will get whatever they ask for them.
Reply ID 65660
Yep. Our mortgage valuation was 40k above what we paid.
Reply ID 65736
Tiny, this should put you in a better negotiating position as it is unlikely that somebody elses surveyour is going to up the valuation. You should also be able to obatin a copy of the valuation to see if the valuer has made any comments in respect of his decision. Alternatively if you are happy to still pay the price you have offered, get the estate agent to contact the valuer and provide evidence to him, that the price you wish to pay is a fair reflection of the property's valuation. Good luck!
Reply ID 65745
Thanks for the thoughts. We have decided that to spend extra £60K (by the time we pay stamp duty) more than it was brought for in the peak with no work done on it would be silly no matter how much we like it. Vendor & agent not willing to discuss at all. Gonna let someone else take out extra loans in a time of reccession to buy it as its only a house.
Reply ID 65955
There were [url="http://www.google.com/hostednews/ukpress/article/ALeqM5i6P2HZmvLanm6AiQbvkKgeRyU5Bw"]reports in the press[/url] over the weekend that banks are deliberately undervaluing properties whereas, of course, the banks say that estate agents are overvaluing! Having been actively looking for houses (and still am!), I tend towards the later view...
Reply ID 65959
Before money became alarmingly easy to borrow, I believe it was quite common for mortgage lenders to have a lower valuation of a property than the agent or involved parties. This was certainly my experience when i bought my first flat and was confirmed by my parents when i complained about it to them.
Reply ID 65961
quote:This is re-heated news at best. As Carlos says, lenders have always been conservative in their valuations. Clearly the Press Association are short of material.
Originally posted by newcomer
There were [url="http://www.google.com/hostednews/ukpress/article/ALeqM5i6P2HZmvLanm6AiQbvkKgeRyU5Bw"]reports in the press[/url] over the weekend that banks are deliberately undervaluing properties whereas, of course, the banks say that estate agents are overvaluing! Having been actively looking for houses (and still am!), I tend towards the later view...
Reply ID 66233
We've had this trouble in the past. But surely the value of a house must be related to what someone is prepared to pay for it, so if the mortgage company disagrees with what you are prepared to pay, it is actualy them that are in the wrong?
Reply ID 66241
quote:Except that the mortgage valuation determines what can be borrowed using minimum deposit. Since most of us do have to borrow, that determines the true value. If you choose to use capital to pay over the odds, you will have to find a buyer willing and able to do the same when you sell, which reduces your market to a few.
Originally posted by victoria plum
We've had this trouble in the past. But surely the value of a house must be related to what someone is prepared to pay for it, so if the mortgage company disagrees with what you are prepared to pay, it is actualy them that are in the wrong?
Reply ID 66261
Surely if you had the capital to pay the difference then you would be looking at more expensive houses to start with as you would have more mortgage spending power as a greater deposit to start with...if that makes sense? So i think those vendors that don't take notice of the mortgage valuations are having to wait for someone who does not need a mortgage. In the 2 bed market you would think this would cut the number of possible sale opps down?