Hi sibantubanye,

Thanks for the reply.

Originally I mentioned i was in the following scenario:

HA Valuation: £250k
Bank Valuation: £200k
Diff £50k (-20%)

Although since my first post i had a peek at the HA website and they are now offering the other flats of the same spec at £225k which is 10% lower then the original £250k. I guess the valuation was more or less correct.

I think I am going to call the HA on the 3rd and just ask for £205k... fingers crossed!!

You will find it very difficult to get the HA to reduce their valuation even if its crap. I was in your situation.

in my case it was similar to yours. We eventually agreed to meet halfway between the bank and HA valuation but we paid the difference. so in your case that would be £225k. For the HA to reduce the price it also depends on demand, so if ther is high demand you may be out of luck on that front. In my case the difference was 25K between the bank and HA.

Another way for you could be reducing your inital stake to 25% then stair case when you get more money or when the HA maybe more ammenable to reducing the valuation. Initially got a mortage offer with Halifax but they gave me a very sick offer I approached my bank i.e. went into the branch to talk to someone who managed to arrange a shared owenership mortgage even though on their website it says nothing about shared ownership. if you do have a high street bank, bank account you could try that and see if hey give anything.

remember the most important thing is to get your hands on the flat/house so if you can get a smaller share I'd go for that if the HA is offering it.

hope that helps.

Hi All,

I know this is an old post but I'm in a similar position to others and would greatly appreciate some help:

I need some advise on a issue I have got regarding the purchase of a shared ownership property. Since is Christmas everyones shut down til 3rd Jan so am getting a little stress

I recently found a property for a Shared Ownership (ideally I would love to buy out right but I think its impossible for most in London.)
The property is a new build, 2 bedroom, 2 bathroom and on the 3rd floor. The asking price is £250k and I've been approved for 40% which I am happy with.

My Independent Financial Adviser (IFA) put my mortgage down with one of the banks which give shared ownership mortgages, which with my own research was actually the best deal around. The bank then did their own survey valuation and then advised that the property was only worth £200k and called the Housing Association (HA) valuation excessive!

Therefore:
HA Valuation: £250k
Bank Valuation: £200k
Diff £50k (-20%)

Now having received my valuation on the 23rd December I haven't been able to talk to my HA rep, but my IFA is saying he doesn't think the HA will drop their price and he doesn't think the bank would honour the mortgage they originally advised, therefore he is recommending that we try another bank and new valuation.

I like the property and the area, but I want to pay the right price. Also I was expecting a valuation difference of £5-7k eitherway but £50k seems massive and one of them, Surveyor or HA, is seriously wrong!

My questions...
Could some one advise what they think I should do next?
Has anyone been in a similar situation, and if so what was your outcome?

Any help or advise would be greatly appreciated

this just happened with me. i got the ha to down value from 280,000 to 250,000. at the moment they are desperate to sell so they do usually comprimise. they may ask to go to another lender. in my case barclays were the only lender so once i sent them the survey report it took them 5 days to amend

the thing is, where its shared ownership they are watched closely by the government so they must understand buying a property worth less than what you pay is not affordable home ownership

stick by your guns and dont be afraid to tell them you would prefer to loose your holding deposit than have neg equity, they will realise that no one in thier right mind will buy below what its worth so they wont want to loose a buyer thats already there, if they are repitable they should be fine within a 10% drop

I am also in a similar boat can you let me know the outcome of your case. in my case the valuation has been downgraded by 20K. can I cover the difference myself and because the HA has told me already that they will not change the asking price?

Hi,

I know that this is a very old post and you have probably moved number of times since....?
Can you please let me know how did it resolved as I am in the similar situation when lender down-valued property by 30K (from the full value of the property available to buy though the shared-ownership scheme. As a result lender is offering less than expected/ required by HAs.
Did you managed to renegotiate the price or did the lender agreed to give you higher amount?
Did you need to carry out another valuation to get more idea about the actual value of the property?

Thanks

There are many different considerations the lender look at when deciding how much they will lend you. One being what is called loan to value. e.g. value £100k loan £95k = 95% loan to value

Most mortgages have a max. LTV and it is depending on your rate, eg lower rate for lower LTV

If the property is worth £100k and you are buying half for £50k, and you wish to borrow £50k then your LTV is effectively 100% from the lenders perspective, if the prop is down valued by £5000 but you are still paying the asking price the lenders will only lend you 100% of £47500

i hope this helps.

I wonder if anyone can help us understand our present mortgage situation? 

My boyfriend and I recently applied for a mortgage for a flat we're buying on a shared ownership scheme.  We received an agreement in principle however the valuation carried out by the mortgage company's surveyor valued the property at £9,000 less than the asking price for our share of the property.  We are in the process of approaching the Housing Association with these findings, however I've been told that should the Housing Association maintain their asking price, we will not get an offer from our mortgage company.  Is this correct?  The amount of mortgage we have applied for is actually less than the mortgage company's value.  Accordingly, should we default on the mortgage, a sale of the property should cover the amount we have applied for.  So why would they not offer the amount we are applying for?  Is there something I'm missing here?

Many thanks