cookie65

No not a high price at all. Our offer of 90k accepted on a repossessed 4 bed end terrace. Same type of property in same area selling for 130-145k.
We have negotiated 7.5k off the purchase price for the works. but still means we have to front up 15k to complete the purchase and then fund the building work until we recieve the retention. He has valued at 90k after works
Works include window lintols, wall ties, rewire, DPC and damp proofing also rebuild of front wall to remove bessemer beam. in the view of builders most of this work is not required.
We have used a broker as this is a let to buy mortgage

brian pearson

The days of 125 % self certified mortgages look a world away now. Maybe the lenders are worried that the property may be worth considerably less in a years time hence their reluctance to lend the full amount.

I would not be entering the BTL pwoppertee market right now.

cookie65

We are not asking them for the full purchase price. we are putting down a substantial amount ourselves. This is not a problem with the lenders, it is a problem with the independent surveyor.
We are not entering the BTL market. We need a larger house than we own at present. hence the purchase of this one. we will be retaining our current home for the kids to live in when they are older. In the meantime we will let it out, the rent paying the mortgage on the new one. This makes it let to buy as opposed to the more familiar BTL

brian pearson

I had the same happen to me ten years ago, just before the market went mad again. An independant surveyor valued the house ten grand less than the asking price and the Bank wouldn't lend on it.

We eventually got another valuation (really wanted the house) that was closer. Maybe times are changing and the valuer really doesn't think the house is worth anywhere near what you want to borrow.

I would have thought a few months ago the application would have flown through. Banks seem to be getting very cautious all of a sudden. You may think that it is an impossibility for house prices to crash eighties style again but who would have thought this time last year we would have a run on Bank and the government pumping 25 million pounds of tax payers money into it with little idea what to do next.

I wouldn't be amazed if next June house prices are up 10 %. I don't think it will happen but I wouldn't be utterly amazed.

cookie65

yes, there are many predictions as to which way the market will go. I think prices will go down, but for myself I do not care if they go up or down. as I do not intend buying or selling again for many years.
Incidentally this property had a HIP with it. I have never seen it and all of the searches have been done and paid for by me. So it shows they are as useless as most people predicted.

PS Northern Rocks bailout is 25 BILLION not million

brian pearson

Yes, 25 billion and rising. I am in a similar situation as you regarding house prices. I can't see me moving so it won't directly affect me. But, I do think the way we have been sleepwalking into a country so in debt, encouraged by the banks and government will end in tears.

We seem to have given up trying to create wealth the usual ways in favour of amateur house speulation.

cookie65

Without a doubt this nation is heading for a shock. I think a global recession would affect this country more than most. I cannot understand why we have encouraged so much credit amongst the public, business or Government(pfi).

Mikeuk

Even on a repo that had been smashed to pieces it woud be highly unusual for a house potentially worth £130,000+ in good condition to sell for only £90,000 in poor condition. Of course I don't know about particular local conditions in your area which I think was Cheshire.

What was the original asking price? Whatever it was you can be sure it was fixed only after the opinions of the selling agents + two surveyors had been sought and even then the mortgagees in possession commonly tell the agents to ask £5,000-10,000 more than the average of the three valuations.

Wall ties, rewire, DPC and damp proofing are fairly routine and should be a matter of fact rather than guesswork. Window lintols and bressumer beam are much more unusual and expensive repairs to specify. What external evidence is there to suggest that such work is necessary?

Have you taken it up with the broker? He has commission to earn so would undoubtedly take up the matter with the lender and/or surveyor.

If you don't complain then you have no hope whatsoever of redress. In the alternative, further investigation may indicate that the surveyor is serving your best interests.

Mikeuk

The HIP is produced for the benefit of the buyer and so you should have seen it.

Did you not ask to see it?

cookie65

Mike
It was originally up for sale at 79.5k, we put in an offer of 81K and they then decided to extend the offer period. We put in a sealed envelope bid of 90k, which was accepted despite a couple of higher bids as our funding was in place and they wanted completion within 28 days.
As regards the work required the lintols are a complete dead-end wooden frames have been replaced with UPVC and the brickwork has not been touched. The Bessemer beam is due to the property being a converted shop. Our intention was to hang a short roof/veranda from it which our structural surveyor said was fine as it was sound.
We are aware that the company which has quoted on the work, are having a laugh with their quotes and the work is going to cost less than they have said.
Our big problem is with the Mortgage surveyor, who has fairly covered his back. He has cost us a lot of time expense and inconvenience through not doing his research correctly 90k valuation for an 8 room + 2 converted cellars property in an OK area and that is in good general condition and has no structural problems seems to me to be a farce. Sorry to impugn somebody in the same line as yourself, but all he needed to do was look at rightmoves.
We really do not want to complain to the broker just yet, but once it is all through we shall.
I have not even bothered asking to see the HIP as both my broker and solicitor have told me I will need new searches anyway.
I do appreciate your point about the surveyor protecting mine and the lenders best interest, but a structural survey and damp survey only pointed to neither of them having a definitive opinion and requesting Boroscopic and another damp report from somebody else.