Mortgage valuation

[bumbez]

It has taken almost a year to find a buyer for our house, but things seem to be progressing well. The house we want to buy is a detached Victorian with loads of original features and we just love it.

Our offer of 370 was accepted, the surveyor has just valued it at 355 in its current state and 360 if some damp is sorted out. The vendor doesn't want to drop the price, in fact is refusing despite the fact that there is a retention of 5 grand on our mortgage.

I think my husband still wants to go ahead and buy it anyway but I'm not sure, the vendor is saying that he will just rent the property out again so I don't think even calling his bluff and threatening to pull out would work.

Are we mad to go ahead and buy it still for 370?

Obviously the mortgage valuation will affect the advance - I'm presuming if your DH still wants to proceed that you have enough cash to fund the difference? If it was a long term house (i.e. you don't intend to move) then I'd probably go for it if you've already invested in it and have found a buyer for yours, but if you're going to be looking to move on in a few years time, I probably wouldn't. Good luck.

If you love the house, I'd go for it.

I think you are mad to proceed at anything but 360. Trust the valuation. That's what the bank think it's worth in this climate. And it's not true that it's always undervalued. When we bought ours at 2009, it was valued at our offer price. (I assume they don't go over your price). We just remortgaged, and it was valued higher than we bought in 2009, and higher than what we thought it would be based on neighbours sold prices in the last year.

I wouldn't go ahead if the valuation was lower especially in a falling market.

Thankyou every one

We do have the funds in that we've requested to borrow more than we need in anticipation of necessary work.

I think it would be our forever house, and it was the reason we put our own house on the market a year ago - to try and buy it.

I am hoping that we can at least get 5 off the estate agent indicated that it might be possible. The vendor bought it in 2004 for 308 in a delapidated state and has spent, according to him , 100 doing it up. (35 dry lining the basement ) for some reason the surveyer is convinced there is asbestos there

We're going in tomorrow to meet with the estate agent and work out what to do. I think we will still go ahead though :)

This whole house buying/ selling is bloody stressy though.

If you buy virtually any house today it has to be on the basis that you're ok with the idea it will fall in value. It sounds like you are and can afford it so I don't see an issue.

We're also looking to buy as soon as we find something suitable & reasonably priced, but if that happens I fully expect it to lose 10% of it's value in the first few years we live there.