mortgage valuation 30k less than price agreed

[madeindevon2]

what would you do? you really want this house as you own land next door to the property. the vendors wont accept less than price agreed or wont be able to afford house they are buying...
have any of you got experience of buyer property for more than mortage co said its worth?

Is it perhaps worth more to you than to another buyer because of the adjacent land ? If you aren't trying to borrow more than the valuation or as a % of it for a particular mortgage policy then you may still proceed.

mortgage valuations are always very conservative ime.

We paid more for this house than the mortgage valuation but then that's because our mortgage was not for the full purchase price of house. Basically, as long as the mortgage company valuation covers the amount they are lending then they aren't bothered, basically they want to to know that they won't lose their money if you default. Funnily enough, the mortgage valuation was for exactly the amount we wished to borrow to buy. Same for the house we bought before that.

Mortgage valuation is not the same as a chartered surveyors valuation.

mortgage valuations are always very conservative ime.

We paid more for this house than the mortgage valuation but then that's because our mortgage was not for the full purchase price of house. Basically, as long as the mortgage company valuation covers the amount they are lending then they aren't bothered, they want to to know that they won't lose their money if you default. Therefore they value it low so that they have leeway for resale should they need to reposess. Funnily enough, the mortgage valuation was for exactly the amount we wished to borrow to buy. Same for the house we bought before that.

Mortgage valuation is not the same as a chartered surveyors valuation.

I'd bite the bullet and go for it.

Would you be gutted if someone else got it ?

Thats your answer then.

starlight, we were given a max loan agreement of £50k MORE than we actually ended up borrowing and were in secure, well paid jobs with no history of CCJ's, defaults or arrears (5 or 6 mortgages between us, 2 lenders, about 20yrs of homeownership). Yet they still didn't overvalue our property.

weird!

LOL

Presumably no-one else wold be able to buy it at the higher price though as THEIR valuation would also be lower, so the vendors are never going to be able to sell it for what they want?

I'd tell the vendor you won't pay more than the valuation, and point out the above. Then if you are really desperate and prepared to go above what it's worth go back to them in a few weeks and offer a bit more. If they're sensible they'll have realised that your lower offer int his climate is worth taking, and may have even been able to negotiate a reduction in price on the one they want.

It depends how much £30k is of the actual valuation and how much £30k means to you. If they know that you own the adjacent land and need to buy their property too then they've got you over a barrel really haven't they? If you're prepared to risk losing it, call their bluff; if not, you may have to pay up.

When we bought our house and re-mortgaged a flat, both valuations were less than the price we paid. I think it's really common.