As my first post help and advice would be greartly appreciated. I have recently made an offer on a flat in Digbeth on a 50% shared ownership basis. The seller has marketed in at £110K, though my valuation has had it valued at £85K. My questions are:
There are a number of repossed properties in the block and other surronding developments ranging between 80 - 90K. I have been told by the housing association that these should have not been included in my final valuation figure as they do not represent the true value. Is that correct?
If I went with another lender would another valuation figure come out at £110K? Would they use the same comparables? The seller has recently had another valuation undertaken by the same valuer and the figure is still £110K. He did not advise of what comparbles where used but stated figures from Zoopla where included. Though there are another two in the block which are marketed for £100K 50% share which have not moved since August.
The seller advises that he is not prepared to move on the figure of £110K as he is currently in negative equity. He purchased his share in 2006 when the property was worth £170K. My concerns are that I've seen a number of shared ownership properties in Birmingham City Centre of which have been on the market for sometime. With recent drops I think the majority of sellers are in negative equity and not prepared to move on the price. My thoughts are to save more money for a deposit and buy outright as the valuations will not match their figures.
