Mortgage valuation under asking price

[CloverCannot]

Lenders' survey has come back with a valuation 8% below agreed sale price (itself revised after minor structural issues identified)

Lenders' valuation isn't due to any specific problem, just "value" - but due to location/type there are v few recent similar sales to compare.

Lender says this is uncommon - anyone else experience it?

I did about 8 years ago during the recession, but I was buying a new build and the builder agreed to drop the price. There were comparatives as they'd sold lots of others but the reason for the low valuation was just the market at the time.

Yes, some years ago as a buyer but we had to pull out of the sale. Esentially the buyer has to have the funds to make up the shortfall themselves as they'd only be able to get a mortgage for the total amount - 8%.

We didn't have that sort of spare money.

Thanks both

We could rejig finances and proceed, but having previously overpaid, we're very wary and a bit blindsided as this wasn't expected at all.

Argh!

Alternatively you renegotiate with seller. Explain if your valuation is such so may future valuations - maybe split the difference so you bear 4% and so do they?

Yes - as the vendor.

I had to drop the price because my buyers didn't have anything additional they could put in so were prepared to walk away.

Depends on the relative strength of negotiating positions.

Careful this doesn't put you into a higher LTV band if you do proceed at a higher price.

The surveyor valued the house we bought at £2,500 less then our accepted offer.
Seller took the hit so chain didn't collapse.

We had this happen on our previous house. Lender came in 15k under our offer price. Managed to negotiate 10k off asking and found extra 5k deposit so we kept our original mortgage offer. Ltv was unaffected.

I guess some vendors will be open to negotiate and some won't. Good luck.

lenders down valuing properties seems to be happening more and more from what I'm seeing, there certainly seems to be a change in sentiment from lenders and they're being quite a bit more cautious than previously.

This time last year our buyer's ex council and beautifully presented house attracted a lot of interest. Initial buyer offered £2k above asking price but then their lender declared the property was worth £15k less than agreed price. Suggestion from that FTB was that we and our vendor should reduce our prices to accommodate him. Needless to say we didn't choose to subsidise his purchase. EA went back to one of the other interested parties and a sale was agreed at original asking price. Their lender was happy with the valuation. Our thoughts were that the initial lender was very conservative and not prepared to accept that our buyer's home's market value was so high because of th lack of comparable sales data.

Sorry for the delay, but thanks so much for all your responses.