First time buyers, can we have a handhold please?

[Spencer0220]

FTB here. Not quite sure what we're doing and don't have anyone to ask.

Would anyone like to come along on our journey please?

Our landlord let us know a couple of weeks ago that he wouldn't be looking to renew the tenancy in December.

By then we will have been here 4 years.

We're both significantly disabled and finding an accessible rental round here isn't possible. Council won't let us join the list as our income is WAY above their threshold.

So, we're looking to buy from our landlord. Unexpected, but we luckily have enough savings to do this now, instead of moving in a few years as we initially planned.

Our accepted offer was £360k. We had it valued by mortgage person today and as I suspected, it's going to be valued significantly below that.

I'm scared. We both want this to be our forever home because it has everything we need. Given our different needs, that's a tall order. We never planned to buy forever first, but it's been put in front of us and we'd be mad not to try.

What happens now? Our mortgage person said we should negotiate a better deal. But how? Landlord very unlikely to agree.

Also decided not to instruct solicitor mortgage person put us in touch with. Her quote was STAGGERINGLY over others. And I got 🚩 about the way she works.

Thank you if you stop by. 🩷

Hi OP,

It's very common for the bank to down value a house- they do a desktop valuation without eber actually visiting the property so really.isnt an accurate value. What is 'significantly' in this case? £20k is very dofferefrom £100k.

Will your mortgage loan amount be affected by the banks evaluation?
Often if your deposit is significantly higher than the loan total, the bank won't care two hoots about house valuation. Its only if they think they won't get their loan back upon sale they start to make.demands.

If you really love the house and it sounds like it ticks all your boxes, I'd pay the original offer. Perhaps go for a reduction of 10% on your offer but I doubt you'd get anything like the full difference.
You could negotiate down but risk losing the house.

Could try a.different mortgage lender especially if this one is giving red flags.

Please instruct a solicitor straight away. You need someone to advocate for you if you. A quick Google of conveyancing solicitors in your area and their reviews should help.

Good luck, I hope it works out for you.

Sorry I can't advise on the down valuation but if it helps I used Taylor Rose solicitors and they were very good and on the ball. I had no problems with them. I think they are nationwide. I can find the name of the exact person I used if you like. If so PM me.

Re the down valuation, is there any way you & the LL could meet in the middle? Your LL does need to take the down valuation seriously because the same thing could happen next time, if they decide to put it on the market rather than selling to you.

Ultimately, if you can’t renegotiate you may need to withdraw and look at buying a different property. Some people choose to get a second valuation through a different Lender which could be higher. But it’s concerning that you already suspected that the valuation would come in lower than the price you agreed to pay - why?

@Spencer0220 it all seems rather overwhelming right now but you are in a position of strength really. Your LL is continuing to receive rent whilst you sort this out. Evicting you and having a period of unoccupancy is not what they want - especially if they have a mortgage to cover. So if you need to lower your offer they will need to consider the fact that the eviction process (should you choose to be difficult about it) could be lengthy or they would have to try and find a buyer with you as a sitting tenant. Make sure you have your sums to hand to justify this.

Never take the unsolicited recommendation of any surveyor/mortgage broker/conveyancer during the buying process, there are always undeclared referral fees at play somewhere in the chain…. Use your local FB page to get a recommendation for a conveyancer someone has actually used.

Re:the valuation -try and gather as many comparables as you can to justify why the price is the right one. A valuation is an opinion based upon data. The more data you can provide, the better - and you are better placed to know the local market more than the analyst sat miles away behind a desk.

A point in general- you describe yourselves as significantly disabled and requiring accessibility which could make you more vulnerable if you cannot inspect fully the entire property. In these circumstances, I would consider whether or not a full survey is a good idea to double check the property before you buy it. I know it is further expense, but £1200 spent now could save you many more £’s down the road. It also would give you a good idea of any work you might need to do in the future to maintain it properly.

Remember, the broker, conveyancer and LL only earn their full fees once you get what you want which is the house sale going through.

Good luck, and keep asking questions!

Thank you Thank you THANK YOU everyone.

I'll try and respond to all the points:

The valuation was in person, not desk.

The gentleman is going to send my mortgage broker the report, but he thinks the flat is only worth £330k - £340k.

Our LL is selling multiple flats in this building. I won't say exactly how many because that could turn out to be outing. It's over 10.

They have been reduced to £360k months ago and aren't selling. Ours is the last for sale, and to avoid it going on the market, we agreed a price.

I thought I had to finalise a price before I engage a solicitor? I'm so overwhelmed and confused.

My mortgage broker told us it's his job to be the go between, between us and the EA so we don't get flack from the EA. Is this wrong?

I negotiated the original price directly with LL. any price negotiations go directly back to him, the EA is only involved because of our tenancy agreement.

Our current mortgage is for £290 with £70k deposit, if that helps?

All our own. No gifts.

I have nobody in rl to help. My mum is being lovely, but has no experience of buying property so can't suggest anything. DH is estranged from all family.

Should point out, my LL initially suggested £340k, until his business partner (whom we've never met) heard of the deal.

We've been told that the down valuation would affect how much bank would charge in interest etc.

Hi OP, I'm also a FTB but as I've not successfully bought three houses in the last three years, I'm a bit more experienced and jaded than most! I've had three mortgage offers and am still in a blinking rental ! 0_0

First thing I need to make you aware of is that FTBs will begin to be charged stamp duty over 300k again from 31st March 2025. Right now, we're exempt up to 425k. Make sure you complete before then, if you can.

Secondly, find your own mortgage broker and conveyancer. Never go with anyone who has a connection to your landlord or their agent.

Try to find a conveyancer in the area you are buying in.

L&C are the most common, whole of market broker. They have access to the widest range of mortgages. I find them very patchy on service and they've peed me off something chronic in the past, but they are free, and they are fast. Right now, what I would do is this:

• Tell LL the lender's valuer valued it at 330k and that you are going to approach a different lender in case others have more flexibility
• Warn him that if a second mortgage lender values it the same, you'll have to have a discussion about the asking price (and gently remind him that HE thought it was worth 340k)
• Call L&C and explain it's just been down-valued, tell them who the lender was, ask them if they can find you a lender who is not currently down-valuing much (they vary with risk appetite greatly)

Your LL has a vested interest in selling to you, because if he has to evict you (by serving a Section 21 notice and THEN issuing court proceedings, rather than you just leaving at the 2 month notice period), we're talking about that taking 12 months, by which time, house values could have fallen. So, don't let the LL walk all over you, please. You are in a pretty strong position.

Additionally, almost every agent we have spoken to this year has said it's really tough selling anything over 300k at the moment (NE/NW England), so if you have good credit ratings and ability to borrow 360k, plus are familiar with the house so are unlikely to pull out after 'discovering' things about the house, you and your partner are Unicorn Buyers for your landlord. Remember how strong your position is. They love selling to people not in a chain, but don't make them feel like they are doing you a favour by giving you first refusal on a house. They're not. They're taking the easy option, probably because they know the market is absolutely pants at the moment.

If you get a mortgage from another lender for 360k, you WILL be overpaying, and it's usually not advisable to do that. However, as you state this is your forever home and perfectly suited to your disabilities, I can't imagine you wanting to move within 10 years, in which case overpaying for a property is far less of a worry than if you were planning to move in 5 years.

Please feel free to tag me if you have any other questions, no matter how small.

If the flats aren’t selling at 360k an EA would suggest a reduction to about £340k so I hope you haven’t agreed to pay more than that?

If you have it doesn’t really matter. You can revise your offer as a result of the valuation. It doesn’t matter to your solicitor whether you change the price or not after engaging them, in fact it’s quite common for a purchase price to be renegotiated after the buyer gets a survey/valuation.

Excellent advice from @KievLoverTwo. Do read this carefully and take not.
It feels as if they are taking advantage of your natural anxiety about your disabilities. If the flats are not selling at 360k, they are over priced and 330-40 is likey realistic. Given that selling to you as by far his easiest option and that he will save estate agency fees of a few thousand, I would definitely try to negotiate the sale value to 330. Put it in writing, say that you are very keen and want a quick sale, point out that he will avoid agency fees. Good luck.

I forgot to say. As your LL's partner sounds greedy, prepare yourself for the following conversation:

'Can't you just get a 95% LTV mortgage instead, and cover off the difference with cash yourself?'

The answer is:

'No. A higher LTV puts us at risk of negative equity; it also means we have to pay a far higher mortgage rate, and decreases the number of people who will lend to us. In a falling market, we would be foolish to expose ourselves to the risk of negative equity.'

You may think you need them more than they need you, but the truth is, the balance is probably about even. Except they have a ton of properties to sell and a lot of buyers to juggle, so the sensible thing for them to do would be to concede to an easy sale when one presents itself.

Thank you everyone.

To clarify, our mortgage guy is someone we've known longer than we've lived here. and personal recommendation from a good friend.

Engaging solicitors now.

@KievLoverTwo thank you so much 💙

And everyone else 💙

Wishing you luck. Please come back and keep us updated with how it is going. I'd like to read a success story on this one <3

Agree with @KievLoverTwo would love to hear your updates and ask away, we will try our best to answer any questions.

Aww thanks.

Mortgage advisor just let me know they've had a valuation in.

Fingers crossed it's good.

Hope the valuation is what you want @Spencer0220 just popping back to say if you are buying a flat you really don’t want to skimp on a solicitor - you will need to check more for a leasehold property (assume it is leasehold as mortgage companies don’t like freehold flats in general). Assume you do not have to deal with any unresolved cladding issues?

You need to check that the length of the lease is acceptable to the lender and establish the service charge and Ground Rent liability and that no section 20 notices have been issued for the building (major works). There are additional fees when buying a leasehold flat (mainly for someone from the management company to complete the enquiries for your conveyancing) so bear that in mind.

Good Luck!

Valuation £330k.

Already sorted ground rent and service charges. Payable every six months

Lease begins at the point we buy for over 900 years.

No cladding.

I'm confused I've read the document, and the valuation is £320k.

But our mortgage guy said £330.

Why?

Ok, mortgage guy misread it, valued at £320k

We'd only have to pay £50 extra a month, but we budgeted to overpay £800-1000 a month regardless, so that figure is actually irrelevant to us.

We're proceeding at £360k and hope everything goes smoothly now.

Valued at 320k - that’s going to hurt the pride of the current owner.

Are you sure you want to proceed at 360k? It’s a big gap… I would honestly be asking for a reduction of at least 10k probably 20k. But up to you of course.

By proceeding at £360k it won't go on the market. There's no risk of him refusing to exchange.

That to me is worth FAR more than £40k.

If we ask, he could list. Too risky.

'We're proceeding at £360k and hope everything goes smoothly now.'

Why are doing this after all the excellent advice you have been given?
You are effectively taking 40k of your hard earned money and throwing it away. You have a very good chance of being able to negotiate successfully and the LL himself suggested 340k initially. With the savings on estate agent fees and the valuation, plus the convenience, he would very likely come down lower. Your decision makes little sense after all the advice received.

Well it's your decision but I don't really understand why you posted for advice if you were intending to pay 360k/ overpay regardless.

I'm not the OP, but I can hazard a guess.

Because when you have a disability, physical space needs and limitations, it's very, very, very, very, very hard to find homes that suit your needs.

I'm not in a wheelchair but I have a lot of space needs so as not to constantly be in pain and/or exhausted; I've been trying to find a house for 2.5 years now; 95% of those within affordable range don't even have the room sizes I need. And, as an FTB like the OP, I don't have the resources (yet) to start knocking down walls and reconfiguring the insides of a house.

@KievLoverTwo has hit the nail on the head.

We've been trying to buy for the last 5 years.

We've lived with my mother until my needs deteriorated to the extent that her adapted house was not suitable.

I'm hoisted and at a bare minimum I need a bedroom that is 12ft at one dimension. My bedroom now is 13ft by 14ft and even though this is over what I need, it's just useable. I want to be able to sleep in the same room as my husband. Hence the 2 ft extra. He sleeps in a separate single bed.

Everyone probably takes for granted that they're going to share a bed. It's a nice luxury that I can share a room.

I will do WHATEVER I need to, to keep this roof over my head. If I lose this, my only viable alternative is to move into a care home at 36 until my husband has found another unicorn on our budget. That could be years. It would be out of authority, and the last suggested location was hundreds of miles from here.

Neither of us will risk this.

I was in a care home in lockdown. I didn't see my husband.

This flat is worth so much more than £360 to us. It means that I can stay in my own home forever.

That's got to mean something.

Like @KievLoverTwo also said, 95% of what is on the market doesn't meet our needs, and we either have funds to buy or renovate. Not both.

If I can't renovate on day one, I can't move in.

This flat needs nothing.

Well, eventually we'll redo the bathroom to have an accessible shower, but that's literally all I need to change.