Down valuations are unfortunately one of the many reasons a home sale can fall through. As, in the UK market, a mortgage valuation on a home isn't conducted until after an offer is agreed.
However, this doesn't need to be the end! As a buyer, you have options.
Appeal the valuation
As the buyer, if you think you have a good case and may be able to overturn your lender's valuation, you are able to go through an appeal process, whereby you are asked to fill in documentation that asks for the details of three direct comparables which fit what you feel the property should be valued at. However, be aware that the valuation will only be overturned in very rare cases, and that the lender will tend to be more conservative in their approach.
Ask for a higher LTV loan from your lender
If your lender has down valued the property, you may wish to check whether you are eligible for a loan with a higher LTV value, though be aware that this often results in increased interest rates.
Try to re-apply via a different mortgage provider
You can try and reapply for a mortgage via a different lender, which will result in a new survey taking place. However, as surveyors often have access to the same information, it is likely that they will generate a similar report to the first one.
Negotiate the offer price with the property owner
One of the benefits of Settled is that we facilitate direct contact between you and the property owner, which helps in making the process more transparent, flexible and efficient. It is always worth having a direct conversation with your vendor and sharing the report results, to see if a new price can be agreed based on the findings of the survey.
Try and find the funds to bridge the gap between the loan offer and agreed on sale price
If you are unable to secure an increased loan amount, and the homeowner is not comfortable reducing the price, then the only solution left, barring withdrawing from the sale, is trying to find the funds elsewhere in order to bridge the gap between the mortgage valuation and agreed on sale price.
We're here to help - so if you'd like to chat through your survey result, please give us a call on 0203 322 8417, or email us at email@example.com.