Advice Needed! Seller refusing access for a Valuation

[Csmith1987]

Hi All,
We are currently in the process of buying a house, we have paid the deposit and are signed initial contracts. We are now at a point where we are trying to get a valuation done on the property for mortgage purposes.

BUT the buyer has refused us entry on to the property to get this done!!

Is this allowed? We have paid a £27k deposit so seems a bit suspicious for them to refuse us access now?

No valuation no sale - their choice.

So are we entitled to our deposit back if we are unable to perform a valuation?

Are you in the Uk?

Is this a 'normal' sale? Very ususual to have paid the deposit before valuation/mortgage etc?

Yes we are in the UK, we got the house under auction conditions.

Can they do a drive by valuation instead without needing access?

Sounds most unusual. A deposit of £27k would only be paid on exchange of contracts. Why would you want a survey after committing to buy?

A deposit of £27k would only be paid on exchange of contracts

The OP bought the house at auction. This might be a reservation deposit paid to the auctioneer and held by them until exchange.

The survey is so that we can be lent the outstanding amount on the property. We are still fully committed to buy but the seller is now refusing access. Literally need to go in the property for half hour max so that the lender will agree to the amount.

Sadly this particular lender won’t agree on a drive by valuation.

I just don’t really know what to do next?!

Buying under auction is very different to normal sales where you arenot bound until exchange. You need to speak to your conveyancer as you may be in a pickle. If you can’t complete you may lose the deposit. What were you intending to do if you couldn’t get a mortgage or have a shortfall? Can you finance it and then mortgage once in?
Alternatively you might want to speak to a mortgage broker on who if anyone would lend via a drive by valuation

Did your solicitor not explain to you that when you buy at auction you enter a legally binding contract when the hammer falls? Legally, it’s not the seller’s problem that you need a mortgage to complete the purchase and they are within their rights to refuse entry to the property. That said, assuming they still want to sell the property to you, it would clearly be in their interests to co-operate with you so that the sale can proceed. If you can’t get your mortgage sorted out, presumably you won’t be able to complete. In that case, the seller will pocket your deposit and re-advertise the property.

Presumably it was sold at auction because it was a forced sale, and the seller is facing eviction due to repossession. Do you not usually need a valuation before bidding at auction?

Sorry - missed a chunk out. A lot of auction sales are to cash buyers and they all advise buyers to have the finances sorted before auction. I’m not sure if you’ll get your deposit back.

Seller won't be facing eviction. If this is a mortgage lender selling they would only be able to put it up for auction with vacant possession.

You need to have your finance sorted before buying at auction. Foolish to pay more for the property than you have already been approved for.

Soooo we found out why access had been refused! He has had another offer from a builder for more so the cheeky git not only wants to take our 27k but also make 30k more in selling to someone else!! Furious is an understatement.
Little does he know that we are now in a position to cash buy!

Buy it, then contact the builder and offer to sell it immediately for 35k more than you paid?....

Surely he would not be allowed to keep the deposit if he pulled out of the deal with you?

If you can buy it cash now, I'd do that.

Because you bought it at Auction, I suspect he doesn't have to give you access for a mortgage valuation - you are supposed to have the money ready because you have so little time to complete the sale. It's lucky you've got the cash now as that was a very risky strategy you were using there!

Yep we have the cash now so will be surprising him with that one!

Great suggestion about selling to the builder! it is a bit of a dream house though hence pulling out all the stops and making the stupid decision in the first place!
I reckon we could sell it for 400k within the year!