Mortgage Valuations on Corvera

Now that a few people have or about to complete, I was wondering if anyone had gone with a bank other than their Developers Mortgage and had to have an independent valuation done on thier property?

I wondered how much below purchase price properties were being valued at the moment?

Any experience on this so far would be welcome.

Thank you

Hi Carrington

We have had an independant bank valuation at 21k euros above purchase price on a 1st floor 2 bed Tilo.

Paul

hi all

It's nice to have a high valuation for mortgage purposes, but I certainly do not believe it's anything like realistic. I've been trying to sell my 2 properties for the last year ( a 2 bed Laurel and a 2 bed Tilo) for 30,000E  per apartment less than  I paid for them, and no one has shown any interest at all. And one of the the agents I'm selling them with at Murcia Golf Properties said I would have to drop the price by at least 30 - 40 % less than I paid for them for  anyone to show any  interest in buying. So as I said it's a handy valuation for mortgage purposes but this 'independant valuer' isn't anywhere near the mark as far as  true value is concerned (  perhaps they have not noticed the recession and the collapse of property prices).

kev

This message was last edited by kev2 on 23/06/2009.

Agreed Kev - a property is only worth what someone is prepared to pay for it! The banks vauation appears to be based on the area size of the property within the Region (as far as I can see with my limited Spanish).  Unfortunatley with a glut of properties to sell in Spain/UK or anywhere else in the world that they are going to drive the prices down - just sign of the times I guess.

This has got to be good news for those who need to raise a mortgage on a long-term lifestyle purchase, who at least now should be able to get the full 70% of purchase price as a mortgage should they want it.

To those who just want to buy and sell and watch their money grow/dwindle (no disrespect or smugness intended) the only true valuation is what the next purchaser is willing to pay for that property.

just a thought ... but was it not banks lending more than the asset was worth and indeed people borrowing more than its value that got us in this mess in the first place ? we know there is a lot of corruption in spain do the "independant" valuers really believe that these units are worth more than 2006 prices ? or is this simply the spanish way of trying to inject a feelgood factor to entice people to complete ? .

you only have to look at roda prices to see the reality of the price falls and volume of sales .

you cannot seriously think it is good news to overvalue a property simply to obtain a mortgage ?

as i said just a thought .

In fact it does not matter what the banks value the property - it's your ability to repay that matters. A cause of all this mess was people borrowing 10x over their salary and banks lending it to them without due deligence.  We're all to blame to a certain extent.

It really was/is the perfect storm which I am afraid to conclude, that in my opinion, my children and their children will be paying for our greed. Ireland, Greece and Spain have all been hit the hardest. Spain more so because most of their tourists come from UK hence reliance on EUR/GBP.

 http://news.bbc.co.uk/1/hi/uk/8115973.stm

M