Jump to content
House Price Crash Forum
Sign in to follow this  
It is different this time

Mortgage Company Valuation Less Than Purchase Price - What Can We Do?

Recommended Posts

Good old MSE

Hi, we really need some advice.

I’ll give a brief outline of the situation:

We have found a new build two bedroom flat (persimmon homes) for sale at £168,000. Persimmons have offered the following deal on the property:

They pay - the 5% deposit, stamp duty, solicitor’s fees, fitted carpets, all appliances and a free upgraded kitchen. We pay just a £250 deposit.

Now we are aware that they have over valued the property to recoup some of the above but we love the flat and felt the deal was right for us.

I visited an independent mortgage adviser and secured a mortgage in principal from Nationwide (6.23% fixed for 2 years) dependant on valuation survey.

Today I received a call from Nationwide (our IMA is currently on holiday) basically saying that their independent valuation came to just £150,000 – and so they will not be offering us a mortgage.

So what do we do?

I visited Persimmon homes and told them the situation and they said ‘oh you are the first buyer that this has happened too’ and gave us the details for their mortgage adviser :lol: (who has secured the mortgages for the other 12 flats which have already been sold).

I feel that we should ask for at least £5,000 off the purchase price or pull out (based on acquiring a similar fixed rate as Nationwide offered from their IMAer).

Any advice would be greatly appreciated

Err, why would persimmon offer - the 5% deposit, stamp duty, solicitor’s fees, fitted carpets, all appliances and a free upgraded kitchen if they didn't think it was overpriced? Seriously nice to see the lender has already crashed the prices! 12% under valuation and hopefully more to come.

Cheap & easy credit? Nope the game is over - please insert token & press start :lol:

Share this post


Link to post
Share on other sites
Good old MSE

Err, why would persimmon offer - the 5% deposit, stamp duty, solicitor’s fees, fitted carpets, all appliances and a free upgraded kitchen if they didn't think it was overpriced? Seriously nice to see the lender has already crashed the prices! 12% under valuation and hopefully more to come.

Cheap & easy credit? Nope the game is over - please insert token & press start :lol:

To be fair all the follow up comments say, "walk away now," apart from the ones which say RUN!

Personally I'd say to the developer, "I think your crappy new build flat has a real value of about £50K and I'm happy to wait five years until the world agrees with me."

Share this post


Link to post
Share on other sites

If I was a member I'd tell them, if they love the block that much, wait 6 months and buy a repo from a BTL'er in the block, bound to be one just around the corner :-)

Mortage advisors tied to developers securing mortgages that the big name banks won't give? No, no subprime in this country...no corruption...where's Eric?

Share this post


Link to post
Share on other sites
Good old MSE

Err, why would persimmon offer - the 5% deposit, stamp duty, solicitor’s fees, fitted carpets, all appliances and a free upgraded kitchen if they didn't think it was overpriced? Seriously nice to see the lender has already crashed the prices! 12% under valuation and hopefully more to come.

Cheap & easy credit? Nope the game is over - please insert token & press start :lol:

Interesting concept "secured the morgage in principle". Secure. Right.

Share this post


Link to post
Share on other sites
Guest DissipatedYouthIsValuable
At this point, my immediate thoughts were "run a ******ing mile"

But, it's probably a 'unique' flat. Nothing that looks anything like it anywhere else in Britain.

Share this post


Link to post
Share on other sites
Interesting concept "secured the morgage in principle". Secure. Right.

Just like those "Secured" loans a certain TV Maths Genius was shilling on daytime tv.

Seriously, the C.A.B. reckon some people really do believe they have more "security" with these things!

Share this post


Link to post
Share on other sites

I made a similiar mistake in 2001. Bought brand new, sold in 2005 for barely any profit.

Had I bought a lived in house at the time, I'd prob have made at least 25%.

Flats are even worse!!!

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 354 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.