Purchase Higher then Mortgage Offer

[user88888]

I have secured Mortgage Offer but it mentions
"The Purchase price of the property is assumed to prepare this Offer £2,10,000"
which is Home report value / Valuation of the property. but I'm purchasing the property higher than this £2,30,000.

My Solicitor want's actual purchase price (£2,30,000) to be put in Mortgage offer instead of property value (£2,10,000) in above section. which will highlight correct purchase price instead of property valuation report suggested.

If I don't get it updated then my Lender will reject my Certificate of Title as it will mention purchase price as £2,30,000 but my mortgage offer says £2,10,000.

Now, my mortgage broker is telling me that lender won't put £2,30,000 in mortgage offer so I'm confused and not sure how to deal with this?

I don't have much time and seller really want to moved ahead as soon as possible.

Thanks in advance..!

I'm not sure I understand fully so forgive me if I've got this wrong.

You've offered £230k on a property, but your mortgage provider only thinks it's worth £210?

Do you want them to lend you more money? Surely they won't lend money on a property they think won't retain its value - wouldn't they then run the risk of you defaulting and them repossessing a property that's worth less than they lent you...?

Or are you able to cover the difference yourself, and the issue is about what's written where on the paperwork...?

This is really common in Scotland and it is expected that the 20k difference comes from alternative funds ie savings.

@splintinfarentino Thanks for your response.
My issue is only paper work. I'm covering the difference. (Basically paying £20,000 from my own pocket) as it is over the home report value.

The problem is mortgage broker is saying lender doesn't care how much you are paying above so they don't mention that value in the mortgage offer but my solicitor says otherwise. Lender should mention Purchase price(£2,30,000) correctly even if it's above their valuation report(£2,10,000).

Lender has mentioned loan value correctly which is 90% of Valuation (£180,000).

If I continue then there is risk my Certificate of Title will get rejected by lender(Barclays).

@Butterflymosaic Right..!
I don't have problem with that, my only problem is wording in the paper work.
I'm really getting clobbered between Solicitor, mortgage broker & lender.

If I'm paying that extra amount from my own pocket then,

1. Does it required to be mentioned on mortgage offer ?


2. If, yes then how the lender should mention it on the mortgage offer ?


3. if , No then where does the actual purchase price is mentioned on over all transaction ? (which document mentions it ?)

Hmm, well I can comment on the Scottish process:

1.no not mentioned on the mortgage, only the valuation (and sometimes the rebuild price too which is different again)

3.on the solicitors paperwork / invoice / statement as far as I remember!

bit odd that they are expecting you to sort it out! Can’t you just contact your conveyancing solicitor as surely they’ve come across this before?

We've just sold our property and are in the middle of buying, we're in Scotland too.

As far as I'm aware from what we've been told - your mortgage offer will only mention the amount they are lending you, you can only borrow up to the home report value and need to fund anything over that yourself (as you've said you are). A mortgage offer won't mention how much you've bought the property for as it is purely an offer of how much they're lending you if that makes sense.

The paper work from your solicitor to theirs should have the purchase price on it, the paperwork we've had to sign from our solicitor for selling ours has the purchase price on it which is 10.5k over home report value so they'll be funding the extra themselves

@Butterflymosaic Thanks for you response.
my solicitor said Certificate of Title has purchase price mentioned in it and if that doesn't match with lenders Mortgage offer where it is mentioned,
"The Purchase price of the property is assumed to prepare this Offer £2,10,000"
then lender will reject the Certificate it Title.

@Lou98 thanks for your response.
can you please share the solicitor's details if possible.
I have talked to one more solicitor in Scotland but he also told me the same thing.
Actual purchase price should be mentioned in mortgage offer even it is higher than home report/valuation report.

I'm not expecting loan to value to be changed.
Confusing thing is if you see carefully, it says,

"The Purchase price of the property is assumed to prepare this Offer £2,10,000"

Assumed??? so lender is just assuming it to be same as home report.
it could be higher or lower than that?

it would really help if you could share solicitor details..

Thanks,
Satyajit

Just to Close this thread.
Lender has agreed that it was mistake and actual purchase price needs to be on Mortgage Offer (even if it is higher than home report /valuation).

I have received amended mortgage offer from lender.

Mortgage Offer should specifically mention,

1. Actual purchase price


2. Valuation (amount) done by lender.

both are different so needs to be mentioned on the mortgage offer.

Thank you for your valuable inputs.. 😊

@user88888 sorry that's me only just checked back on this thread.

Looks like you've got it sorted but if you want the solicitors details still I'm happy to send you a PM (don't want to put it on here really as I live in a small town so would be very outing for all my other posts!)