• Higher Valuation Than Purchase Price

    By Guest on 17th Jun 2016

    Hi I have just agreed a purchase price for a flat at £128K from my landlord, as it needs a lot of work inside and out, however Ive just had a homebuyers report done the valuation came in at £150k will my solicitor ask me to get indemnity insurance, or ask the landlord to sign to say they are selling to me at a special price?

    I would rather not let him know what the valuation came in at as he will ask for more money, is this necessary? The adviser from the lenders is not sure but reckons I may have to get the seller to say he sold me it at a cheaper price, and has no claim on the property for doing so, and I will need indemnity insurance to cover this, is this true?

    1) will the lender expect me to do this?
    2) Can I now request a better LTV rate as I am now 72% with it being £150k than 85% being £128 thank in advance

  • 1 Answers

    By Guest on 26/06/2016

    Thanks for your questions:

    1. If the mortgage offer states the purchase price as £128,000 and the valuation as £150,000 then unless there is specific condition in the offer about it, it will be up to your solicitor to decide whether insurance and a statement by the seller is required to protect the lender. If the offer doesn't state the valuation or if the purchase price is incorrectly stated your solicitor will have to report this and your lender will state what it requires.

    2. You will need to speak to your financial adviser

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