Hyperlinks in Signatures...

we are soon to complete. 
I remember in the past threads about low valuations, and woundered what experiences you all had.

We have applied to llloyds/TSB and they have valued the 2 bed appartment at 169,000 euros. The off plan price we agreed to was 196,000.  what did other borrowers do to solve this problem?
did we pay too much for the appartment in the first place?   What variations influence the value of the property?
thanks in antcipation of your help
louise 

Louise

We were told that there were numerous factors that contribute to the differences in valuations including - 

Which floor you are on?
Is there a garden?
Are you facing inwards or outwards?
Proximity to the pool
Underground or outside parking

You've got to remember that the market values have dropped considerably in the past year so it is difficult to say if you agreed to pay too much at the outset.

We agreed 179K for ours in April last year & by August we were being told the value was 172K. We challenged that quite heavily with evidence of other buyers who had valuations done for the same bank as us at the same time as us! Ultimately they changed the valuation to the purchase price.

However we wanted to borrow 80% of the value so we again challenged on the same basis as above. We were then given a valuation of 192K but the bank had then changed its criteria & would only lend 80% of purchase price.

If a valuer is willing to increase his figures by 20K in the space of 2 weeks, it  shows me that the valuations are not really worth the paper they are written on. Ultimately if you get the mortgage you need on the value that you are given, it doesn't really matter what the numbers are (until you want to sell of course).

Maybe it does look as if we have paid too much, particularly in the present buyers market but is it worth thinking like that? After all the only option would be to cancel your contract & that would result in the loss of substantial amounts of money.

I know this has dragged on for you but as you know, we had loads of problems with our purchase & I can honestly say I don't regret buying for one minute.

Hope that helps a little.

Regards

Noreen

thank you noreen, I could put money on you being the first to reply- and I am so very gratefull for all you efforts!  I must be honest, cancelling the contract is something that I have considered, but losing 100% deposit isnt an option.  I appreciate that values of property have decresed lately, but this differential does seem crazy.  I am just so dissappointed that our purchase in spain has been made difficult at every stage.  however, I refuse to be deterred despite the ever rising frustrations.

thnaks again noreen, no doubt I will speek with you soon- remember, if there is ever anything I can do for you, just let me know
regards
louise

Hi Louise

Just keep sayingto yourself "It will be worth it in the end" - because it will be!!!

Hope you get everything sorted soon.

Regards

Noreen

Hi Louise and Rich,
I think the valuation depends on who you get it from. I bet if you had it from a local Spanish based bank it would be more than the purchase price , even now. As you know our valuation was 219k and we are just below you in a very similar apartment although this was before the big crunch of course.

Cheers

Jay

I agree it will be worth it in the end , what I have thought is I would never buy off plan again , due to the builders and agents, attitude to getting anything done 

I bought off plan in the u.k and you can obviously keep on top of it more

I am beginning to love ours 

need more airlines though to come to almeria and we have cracked it

like noreen says house prices everywhere a problem hang in there

enjoy lynda [block 26]

 

thanks both, I think you are right. we simply have to keep waiting. WE have approached the builders bank for a mortgage, but quite frankly communication was like pulling teeth!  I am quite sure they wont have a problem with the valuation.  thaks again louise

We also ended up getting a mortgage from the builder, though that was partly due to my having recently gone self-employed and the solicitor advised that this would simplify the process, which it did.

I am actually a mortgage advisor based in the UK and I even went for a mortgage with a Spanish bank partly due to employment reasons as previously mentioned, but also due to the fact that a lot of the UK banks are only just going into the Spanish market and therefore seem to want a real excess of information, what you had for breakfast, what size shoes you wear!!  Only joking, but we did find it simplified matters.

I did arrange a mortgage for a client recently with Banco Halifax Hispania though and that went through quite easily even though it was for over a million Euros so the UK banks are starting to get their act together.

Good luck & i'm sure it will be worth it in the end.       

Hi Louise, we are compleating on our apartment on Vernada on Monday and like you went through all the worries and concerns about the valuation and it coming in below what we had agreed to pay.
We got some words of advise from Noreen and Smiley (Patrick) from the general forum. And basically what they said was to remember why you were buying in the first place and  What attracted you to the area, the complex etc etc?  If you can hold those thoughts and can afford to go ahead and hold on for a couple of years things should work out. 
Valuations of Veranda have varied greatly, ours was only 5thousand short of what we had agreed to pay, so we dont feel too bad considering the present market, but I know others had lower valuations, so it does depend on the bank.
Hope all works out for you. Best wishes
Tricia