Hi there,
long time reader of the forum, first time poster, looking for advice.
My partner and I have recently had an offer accepted on a house for 310,000. We had a mortgage approved and chose to have the homebuyers report done through our lender i.e. alongside the lender valuation. We received the homebuyers report and it stated in writing that the valuation of the home was 310,000. However, we then received a call from our lender to say that the valuation had come into them at 300,000. We have now chased this up with the surveyor and he confirmed that he did in fact give a different valuation to us than the lender, as apparently with mortgage valuations they are 'more conservative'. This puts us in a bind, as we are not likely to be able to negotiate down the sellers by another £10,000, as they were hesitant to accept our offer of 310,000 and took quite a bit of time accepting the offer. At a valuation of 300,000, our lender has offered us £9,000 less in mortgage so we need to make up the shortfall if we cannot negotiate the sellers down.
I have never heard of this practice of providing one valuation to the buyer and another to the lending company. Has this happened to anyone else? How is it possible for the same surveyor to value a house differently to the buyer and the lender? And more to the point, are they allowed to do this?
Any advice anybody could give would be great.
Thanks
long time reader of the forum, first time poster, looking for advice.
My partner and I have recently had an offer accepted on a house for 310,000. We had a mortgage approved and chose to have the homebuyers report done through our lender i.e. alongside the lender valuation. We received the homebuyers report and it stated in writing that the valuation of the home was 310,000. However, we then received a call from our lender to say that the valuation had come into them at 300,000. We have now chased this up with the surveyor and he confirmed that he did in fact give a different valuation to us than the lender, as apparently with mortgage valuations they are 'more conservative'. This puts us in a bind, as we are not likely to be able to negotiate down the sellers by another £10,000, as they were hesitant to accept our offer of 310,000 and took quite a bit of time accepting the offer. At a valuation of 300,000, our lender has offered us £9,000 less in mortgage so we need to make up the shortfall if we cannot negotiate the sellers down.
I have never heard of this practice of providing one valuation to the buyer and another to the lending company. Has this happened to anyone else? How is it possible for the same surveyor to value a house differently to the buyer and the lender? And more to the point, are they allowed to do this?
Any advice anybody could give would be great.
Thanks