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DeadCat

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About DeadCat

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  1. Well, based on the valuation of 160k I submitted a revised offer of 157k with a 86/14% equity split. They rejected this but decided to throw in a free car parking space. I estimate this is worth 5k as the flat is in a town centre location. I rejected this and offered 165k with parking space and flooring (worth 1.8k to me) which they flatly rejected. I went back with 167.5k/parking/flooring which they again rejected but came back with a counter offer of 170k/parking/flooring (original purchase price was 172.5k). I rejected and went back with 168.75k/parking/flooring with a 83/17% equity split which they rejected and said that the 170k/parking space/flooring offer was their final offer. I can only afford a 82/18% equity split based on this. I'm deciding what to do and will let them know tomorrow whether I accept or walk away... This sounds as though they called your bluff?
  2. I know, its ridiculous. I was actually being sarcastic. They essentially want to charge me an extra 12k more than what the property has been valued at. Of course there is absolutely no guarantee that when I sell the property in say 3 years I will get 172k for it. The shared equity loans are interest free but they would get 21% of the equity when I sell. Shared equity is not the same as shared ownership. I think thats where some confusion is arising which I should have made clear. I will own 100% of the property but the developer has a 21% share of the equity. The equity share was originally 85% based on me obtaining a mortgage based on the value of 172k (I have 15% deposit which would mean a 70% LTV). Now that the mortgage is based on 160k in order to fund the difference the developer wants a 21% equity stake which would still mean im paying 172k for the property but the extra amount will only be crystallised when I sell. The 160k valuation was for 100% of the property. I hope I have made this clear.
  3. I should add that my mortgage would be with Nationwide who is only 1 of 2 lenders who lend based on shared equity.
  4. Builder is now offering a new deal whereby they increase their equity stake to 21% from the original 15% allowing me to still buy at the original price of 172k but take a mortgage on the valuation amount of 160k. In effect giving me a loan for the difference which I pay back when I sell. Hmm, sounds tempting... buy now, pay later! I may lose the 1k reservation deposit if I pull out now but at least I wont lose my shirt when I sell the property.
  5. I signed a reservation form. It says that either party can withdraw from the purchase prior to exchange if the sale is not progressing to either party's satisfaction. The deposit is non-refundable. It also says that contracts must be exchanged within 21 days and if not the developer reserves the right to remarket the property. They are happy to extend the exchange date as none of the events which have occurred were within my control. Similarly, the valuation was not in my control. You are spot on with your last paragraph. I personally think it would be unethical for them to pull out and also wrong for them to insist on the £172k original purchase price.
  6. I can understand how that is construed but the valuation has reset the goal posts. If the valuation came in at 172k and I pulled out then fair enough I lose the money. But if the developer insists on 172k they are trying selling me an overpriced flat which I will lose money on when I sell. They are being unreasonable in my eyes and therefore should return the £1k. It is not my fault that the valuation came in at 160k. To reiterate, I do still want to buy the flat, but only at the market value.
  7. I would rather go with the advice of a paid professional rather than my own gut feeling or even worse the developers fantasy island price. No, I can't afford to pull out an extra £12k out of thin air when I am already stumping up a hefty deposit. Who does have this kind of money lying around for this eventually?! How can I be prepared for that or anticipate it coming?! I dont think even the bimbo in the sales office would say what you are saying. If they pull out I'm pretty sure I won't lose the 1k. I'll camp on their doorstep and wee in their flowerbed otherwise.
  8. +1. GB is truly a madman. This might actually be good for HPC when the mini bubble eventually burts and despair sets in again. Maybe GB is a HPC convert who is secretly on our side?
  9. It looks like Labour want to go out on a high so when the mini bubble bursts it will be the nasty Tories who will get blamed. An autumn GE is looking more likely.
  10. I do not intend to pull out and have never said that. My concern was that the developer would pull out. If they do then I expect the £1k back. The reservation deposit is not what I'm worried about though. The flat's been valued at £160k. It is up to the developer to prove it is worth more. The comparables have failed. The only thing they can do now is pay for their own valuations in an attempt to swing my valuers opinion. I don't know why you are suggesting that I pay any more money. It's a good job that I am not an idiot because if I was and had listened to your advice then you would have cost me several hundred pounds. I hope that you are not giving other people the same advice. Flatbread understands my situation. I want to pay the market price, whether thats 160k, 165k, 170k or whatever. If the value is 160k then thats what i want to pay and the developer will have to agree or pull out.
  11. I understand what you're saying but surely it would be unprofessional and against the RICS rules of conduct to deliberately undervalue a property. The developer has supplied comparables but the valuer is still standing by the price. What you are saying now is that you are recommending me to pay money on further valuations in order for me to pay more for the property?! Either you think I am an idiot or you are on a wind-up mission. Edit: Or you are a developer, builder, estate agent or other VI
  12. The lender has employed the valuer to estimate the current market value of the property. This protects the lender as well as me from making a bad investment. I have paid the valuation fee, not the lender, so they are as much working for me as the lender. Maybe you could explain in better detail what it is I don't exactly get as I'm strugging to understand the points you are making.
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