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The nervous wait to exchange....

Discussion in 'Home and Garden' started by noj, 3 Apr 2014.

  1. ShadowMan

    Wise Guy

    Joined: 18 Oct 2002

    Posts: 1,740

    How conservative did you need to be? Bought this house for £280k Feb 2020. Valued at £375k in May 2021. Being redone again tomorrow and no idea where that will be but another around the corner in a worse location just went for >£400k but did have planning for an extension. I was hoping to be able to put down at least £360k as will get me to a much better bracket or could release equity and let the Mrs have her new kitchen...
     
  2. toshj

    Mobster

    Joined: 11 Aug 2009

    Posts: 3,524

    Location: KT8

    Someone better informed than I can give you a better answer - our mortgage broker indicated that a great deal will be based upon the most recent sales down your road, and then compare them to your house.
     
  3. Peerzy

    Soldato

    Joined: 9 Nov 2008

    Posts: 6,933

    Mortgage lenders will want to use hard data - completed and sold entries on the land registry for the road ideally and a similar house (3 bed comparing to 3 bed etc...). It can often take a few months after a sale has been completed for the price to appear on the land registry so it's likely they'll be looking at data from 4-8 months ago. If there hasn't been anything sold on the same road that's the same type of house they may go slightly out by a few roads but if there is only 1 or two sales and the houses aren't similar on paper they'll struggle to see enough data to suggest the higher prices sometimes.

    It really depends on what they have available to them and how they act if there is nothing tangible (Nationwide for example use a formula based on averages in the local area minus a % to build in a buffer for them). IIRC when we had a mortgage with them I was able to phone and ask and they ran it through the compute and gave me a figure a few months ahead of my renewal date so I knew how much I'd need to overpay to get into a suitable bracket.
     
  4. ci_newman

    Sgarrista

    Joined: 24 Feb 2004

    Posts: 9,798

    Location: Hook, Hants

    Of course the other option is to actually pay for a mortgage valuation where someone actually comes out to the house.

    Realistically for a paper / desk valuation, the mortgage company isn't going to go much more than 10-15% higher than Feb 2020 unless they can actually see the interior of the home and judge a significant improvement.

    The current claim is that in 18 months the house value has risen 35%. Even allowing for the covid "spikes" in house values, no desktop valuation is going to agree to that.
     
  5. ShadowMan

    Wise Guy

    Joined: 18 Oct 2002

    Posts: 1,740

    And that’s why I’m pretty sure they will be nowhere close. So far broker hasn’t talked about the option to pay for a valuation but will ask if it’s an option. I don’t actually believe it’s worth £375k. We spent around £25k on improvement so would like most of that back and then add on the rising market I didn’t think £330k was out for eh question but will see what is said. As long as it’s over £300 I’m fine but the more I can push it the more I can reduce the rate.

    Values seem all over so will see what agent says tomorrow. It’s the same valuer who set the price when we bought it so be interesting what he says.
     
  6. Skillmister

    Capodecina

    Joined: 3 Oct 2009

    Posts: 19,797

    Location: Wales

    I'm currently in this dilemma. Waiting for a couple of houses that sold earlier in the year to appear on Rightmove sold prices so I can see what they went for but I doubt a remortgage valuation would get through for a equivalent of an inflated sale price. I'm planning to add on about 10-15% to what I got it valued at in late 2019 and see what happens even though from what I hear the nearby houses sold for about 20-25% higher
     
  7. ShadowMan

    Wise Guy

    Joined: 18 Oct 2002

    Posts: 1,740

    Have had the agents out today. Same agent who valued it when we bought it and handled the sale. Their new pricing based on local recent sales and their knowledge for ours would be offers over £400k but take £380k for a quick sale which makes a 37% jump in just over 18 months based on an agents expectations and local STC's/Completed.
     
  8. Nick1881

    Sgarrista

    Joined: 4 Feb 2007

    Posts: 9,668

    Location: Nuneaton, UK

    I finally exchanged today on my first house, should get the keys from the seller on Friday. It's taken a long time so I'm excited to finally start moving in.
     
  9. IvanDobskey

    Sgarrista

    Joined: 2 Feb 2010

    Posts: 9,037

    Location: East Midlands

    Congrats on your first house :)
     
  10. a1ex2001

    Capodecina

    Joined: 14 Mar 2005

    Posts: 14,293

    Location: Here and There...

    The housing market has gone crazy I’ve seen stuff locally go for crazy money, literally everything is sealed bids and 20% over asking!
     
  11. Vita

    Capodecina

    Joined: 26 Mar 2006

    Posts: 11,212

    Location: United Kingdom

    Completed today. Took 8 weeks.

    Now to repeat the process as a seller.
     
  12. Marff

    Gangster

    Joined: 5 Aug 2010

    Posts: 197

    Location: Maidstone

    We’re ready to exchange but waiting on the buyers returning the signed contracts and paying their deposit. Annoyingly they’ve had the contracts since 2/9 so getting a bit worried now...
     
  13. Rabtech

    Wise Guy

    Joined: 27 Dec 2003

    Posts: 1,140

    Location: Preston, Lancs

    Some good news finally, our solicitor sent over the contract and mortgage deed paperwork to sign today, will get what we can filled in tonight and sign the mortgage stuff with a witness. New target completion date of the 29th September and looking to exchange late next week or the 27th September at the latest. Had nothing back from the buyers survey although they have already got £4950 off the asking price so that may have been a factor. Time to make a major declutter and packing effort, get the troops at the ready :)
     
  14. montymint

    Don

    Joined: 29 Jul 2006

    Posts: 5,493

    Location: Newcastle, UK

    I'm due to complete in a week and still not exchanged because of lack of deposit from my FTB. He should have it paid today.
     
  15. squerble

    Mobster

    Joined: 13 Apr 2009

    Posts: 4,759

    Location: UK

    Had mortgage offer back, and report on title from solicitor. Reading through the report is grim reading though - high risk of groundwater flooding, high risk of subsidence, house has works completed without building reg certs, absolutely no records of anything GasSafe, FENSA, etc etc. Massively off-putting. :(

    Have also chased our mortgage broker 3 times to find out where the full home buyer's report we paid for has gone. Having no luck with them so currently sat on hold directly on the lender's complaints line.
     
  16. platypus

    Caporegime

    Joined: 25 Jul 2003

    Posts: 39,318

    Location: Rhône-Alpes+Cambridge

    We exchanged yesterday and complete next Thursday. Been a long while to get here, solicitor madness has caused all manner of holdups and issues but now its all done and dusted. Save for moving..
     
  17. platypus

    Caporegime

    Joined: 25 Jul 2003

    Posts: 39,318

    Location: Rhône-Alpes+Cambridge

    Congrats! Not much can beat that feeling.
     
  18. Unseul

    Mobster

    Joined: 18 Jun 2018

    Posts: 2,692

    Location: Isle of Wight

    Survey just come back. Turns out he reckons the loft room (not an official conversion), has basically just ripped out (my wording) a load of the support trusses and not done anything to restrengthen the roof. Said it needs a structural engineer to check it to determine just what's been done, what would need to be fixed and give a price.

    There's other issues (wear and tear on an older house) but that's a walk away issue for us basically. Unless they're willing to spend the cash on the structural engineer and it's not a large sum!
     
  19. Slade2

    Wise Guy

    Joined: 14 Apr 2011

    Posts: 1,138

    Location: Stafford

    I seem to remember reading an article a while ago where some dude was in the local paper because he just went in the loft and used a saw to cut all of the trusses to make a bigger room. The next time it rained the roof caved in. I just remember the picture of the dude in the paper with a dumbfounded look on his face. It wasn't even his house!
     
  20. squerble

    Mobster

    Joined: 13 Apr 2009

    Posts: 4,759

    Location: UK

    I've just had my survey back too - no evidence of cavity wall even though EPC says it's done; chimney stack needs repointing; high damp meter readings to the ground floor walls due to lack of effective damp-proof course; wall mortar needs repointing; cracking between our extension and neighbours; kitchen window needs replacing as it's misted; sealant between a number of frames and walls is loose/perished; no FENSA or BRC for windows; risk of concealed asbestos sections; insulation below modern standards; evidence of birds in roof space; number of ceilings cracked; some textured finishings may contain asbestos; wall in living room removed with no BRC; no electrical test certificate on modified electrical system; no gas safe cert for boiler or fire; water from boiler overflow dripping onto garage floor.

    Now a few of these things are expected on a 65 year old house, but the complete lack of any certifications for works, some of which all completed in last few years, the owner has absolutely no receipts for any of the work he's had done... it's all decidedly dodgy.