Mortgage company down valued by £130k - wtf?

[Beach1983]

Seriously I’m stressing out so much, we had an offer accepted slightly over asking. That was a middle price between lowest estate agents price valuation and highest.

mortgage company have valued at 65k under the lowest valuation and £130k over our offer. IFA is currently trying to establish it this an error/typo as he’s never seen such a large down valuation in his career.

ive had an independent RICS survey done on the house which I should receive next week - I’m hoping if this comes back at a number more like we offered I can use this to appeal the decision?

anyone had similar? I honestly am so upset!

Sorry OP no advice but watching with interest. Also waiting for valuation.
Never heard of anything like this but have you trued posting on MoneySavingExpert forums

We had a similar amount knocked off at our valuation in 2017 ( was about 10% of the value).

We renogatiate (but only about 3% ) and were able to proceed as our LTV wasn't impacted.

Spoke to our broker and we're told there was absolutely no chance of appeal.

We know our issue is that on paper it's very similar to lots of nearby houses, but in reality it's the last road on a No through road with its own parking and a massive garden, all of which commands a premium around here. We've had two further valuations (a paper and a visit based one) which have been fine.

Definitely happening @TyneTortoise and RICS are covering their arses too as they could be liable.

I'm in the profession (or was) I've handed my mortgage work over to my colleague and focusing on pensions and investments although I will advise on equity release, sometimes, depends.

It's tough out there.

I do think our offer was more than it’s worth but was only 15k over asking. down-valued by 130k is 25% of what we offered which is crazy! It’s 65k under the lowest estate agents valuation - I think we offered too much and the valuation is too low (going by other properties sold recently).

problem is it is a unique property and nothing similar has sold in years so I’m guessing that doesn’t go in our favour.

will wait and see what our surveyor says when I get the report Tuesday - if it’s the same then that is what it’s worth and no point going to another lender but will be annoyed the estate agents got it so wrong!

I knew there was a 'spate' of down valuations (having seen many properties come back on the market) but this level is insane.

And like OP the property I've offered on is unlike the others in the area, been done up extended etc. Last one sold in 2021. I have enough to support a down valuation until the offer price, but no more.

If possible @TyneTortoise insist on a real valuation though be aware the RICS and lenders are risk averse atm.

"is it is a unique property and nothing similar has sold in years so I’m guessing that doesn’t go in our favour"

No way a desktop val is acceptable then. Get them out.

Desktop valuation unacceptable under the circumstances.
Who is the mortgage with? Can you go with another lender who will do a proper valuation?

@Candleabra @TiddyTidTwo originally I was told it was desktop then my after speaking to them my financial advisor said they did an in person visit so can’t see them changing their mind. If my surveyor says the same will have to try and negotiate the price, or I mortgage for the amount they have given and over pay with our equity but won’t be able to go as far as original offer so not holding out much hope!

Ah I'm sorry @Beach1983 if they've been out. The housing market is one thing but the lenders and valuers are another beast.

It's going to be hard out there for the foreseeable and they're covering their arses.

Thanks @TiddyTidTwo ; they have said they're sending out a real surveyor, so we'll see.
I don't know what I'll do if there's a big down valuation. My sellers are chain-free(probate) which could go either way. They'll either be open to negotiating as no need £££ for onward purchase. Or want the most money possible and just stick it back on the market.

Good luck @TyneTortoise

Hopefully they will realise it won't be any different for the next buyer and take the money x

My purchase is a probate sale too so vendors could also go either way. I am going to drop my offer to £10k over the mortgage valuation and then it's up to them. I may be cutting my nose off to spite my face but I don't want to pay £££ over the value in the current market.

You're doing right @dubyalass

Thanks @TiddyTidTwo , I'm happy to walk away at this point because I haven't spent that much (no survey booked in yet, not even sure if the searches have been requested yet). It would be a shame to lose the house but I don't have to move at the moment.

I’d be happy right than anxious. This is an opportunity to renegotiate and potentially save a huge sum of money. The lender is doing you a favour!

@SwanBuster i agree, obviously if we can get it cheaper that’s amazing. However I’m worried they will either decide not to sell, or they will hold out for someone else who had a huge deposit or is a cash buyer. Obviously best solution is that we can negotiate a better offer so 🤞

Useless post with a bad spelling mistake thrown in. Well done.

What happened in the end, is it still on the market?

I'd be interested in knowing what happened too and how it worked out.

It can be difficult to value if there are no recent sales in the area.

When a valuation expert is telling you their opinion though, it is wise to listen.

I don’t know how these things work but did they use land registry data? I have heard that there have been delays updating land registry data so maybe they can’t find examples of similar (ie same number of bedrooms) houses that have sold.

Ignore my comment, I hadn’t seen it was an old thread.

op I hope it worked out for you.

I think if it’s an unusual property they can be way off, sadly, and there is very little that can be done to change their minds if you can’t demonstrate similar recent prices.

@Beach1983 has posted recently and I think she may have got the property but hopefully she’ll come back to update!