AH Devaluation (esp Marrsfield,Clongriffin) Banks only offer 80% of current valuation

Re: Marrsfield

rondon
I had to get letter from bank saying what they currently valued property at (290 compared to 382 last year!) how much they were originally going to lend me and the reduced amount they'll now lend based on the lower valuation. This went to AHP's solicitor. Apparently AHP need it to try to negotiate with the council. Waiting to hear back now. Will post when I hear anything
 
Affordable Housing Devaluation (in particular Marrsfield, Clongriffin buyers).

AFFORDABLE HOUSING DEVALUATION

To all Affordable Housing buyers but in particular to Marrsfield Clongriffin buyers. Don't walk away and lose deposit! People have fought this and got the price dropped. Send your evaluations into your solictor and fight it out. We are in a binding contract and the AHP are a scheme set up to help young buyers get a property at a discounted rate if they are not doing that now, the scheme is not doing what it says and they have to accommodate all us young buyers who now cant get mortgage approval.

My situation is July 07 I put deposit etc down on 2 bed Apt in Marrsfield valued at €380,000 and was getting it for €275,000. I got the evaluation a few weeks ago and its €290,000. I got on to solicitor and got him to bring this issue up with AHP solicitor and say its not affordable housing if your now only getting €15,000 of purchase price not the 33% discount they say they provide.

So finally the other day he got word from AHP solicitor and they said they were having a meeting with the AHP and the builder ( in this case Pierse Homes) about this issue. My solicitor asked was this just an isolated case and they said "no" there are a lot more people in the same situation.

So basically everyone has done snags, tried to close and now banks are not giving loans based on new evaluation! I only qualify for €230,000 now. So I have to get €40,000 from nowhere.

AHP can not expect young buyers entering into affordable housing to have €40,000 savings if so you would'nt be applying for Affordabling Housing. They have to bring the price down. Why do you think there having this meeting?

AHP cant let this happen all these young buyers at the 11th hour when they have done snags and think that they are about to move in. The Builder does'nt want to lose alot of buyers for apartments with the way the market is.

Even if you think of pulling out the next buyer is going to have the same problem. The Apts in Marrsfield are registered as affordabling housing so can not be sold as normal. I asked solicitor can I buy it out without being locked into Affordable contract when I found out new value. Their solicitor said "No" as its registered to Affordable- so if you pull out the next affordable housing buyer as same problem.

Therefore get evaluations into your solicitor to fight for the price to be renegotiated. People have done it before. We are in a binding contract and its not our fault we cant get mortgage approval its cos of the new evaluation. We want to buy but cant so AHP can come to agreement with the builder and accomodate buyers.


If a renegotiation cannot be agreed then we can lobby to be financed with some sort of loan form the council to meet the shortfall on the original mortgage. As I have said people have been in this situation and AHP have renegotiated. If the worst comes to the worst we can hold out and fight it as we want to buy property just need mortgage approval. Dont walk away and try to find a new property and to buy again!
 
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Re: Affordable Housing Devaluation (marrsfield)

Regarding Marrsfield

Hi Dubc456

Thanks for sharing your post with us. When you say 'people have fought this and got the price dropped' - have you heard if anyone has actually gotten a confirmed price reduction?

I am in a similiar situation. Like you, I put a deposit down last july. I also have had my apartment re-valued and it has dropped from 380,000 to 330,000 i.e. 50,000. i.e. clawback should now be 13.15%. Therefore, the asking price of 275,000 should now be 225,000 if it is to be anyway affordable!! my bank are now re-considering my mortgage loan.

i am just wondering though, what the difference in your apartment re-evaluation and mine as they are both 2beds and mine was revalued @ 330,000 and yours re-valued @ 290,000 - (40,000 is a huge difference) - is that because of which floor we are on/size of the apartment? from what i know, i have one of the bigger sized apartments and it is dual-facing.

so far, i have got in touch with the AHP and am waiting to hear from them regarding the new valuation. i was hoping to close soon but with this new valuation, changes will have to be made. According to my completion letter, 'in the event of the client not completing the transaction within 14 days, the interest will be imposed on a daily accrual basis'!! does this now mean i will be penalised by paying interest if AHP don't sort this matter?

you are so right Dubc456, we all have to stick together on this one as there is 'strength' in numbers and they will have to reduce the price. i have been waiting so long and this is meant to be affordable. fingers crossed eh?
 
Re: Affordable Housing Devaluation (marrsfield)

Hi hardcandy

I have a friend who got her apartment reduced by 30,000 although she had not gone as far as us she put her deposit down and 2-3 months later her apt dropped so her solicitor renegotiated a price reduction..I have also seen posted on this site someone sayin they got there evaluation into solicitor and got a reduction and also just heard of other friends of friends been in similar situation. With regard to clawback there is only a clawback if you make profit and it is the percent of discount you got it at based on the market value at the time- so never mind worrying bout clawbacks the banks will not lend you the full ammount well mine is'nt..I can only say for my situation ie Last year apt 380,00 and I paying 275,000 so that is 72% of the purchase price and my loan approval was no problem BUT this year based on the new evaluation of 290,000 they will again only give 72-80% of purchase price which is 232,000 so that is all Im approved for. So I presume if Im having this problem all banks are the same, that other buyers in this development are goin to be faced with same problem and this is why the AHP and builders are having a meeting?? I feel your bank will say the same and give you 80% mortgage on the 330,000. So you will have to come up with the difference..I personally dont have 40,000 savings as I said I would'nt have gone for Affordable if I did.

With regard to the difference in our evaluations, there are prob alot of factors and yes yours is probably bigger and different floor etc- and nicer!! so well done you!!!

With regard to your completion letter - I dont have a clue sorry I did'nt get one of those..I have'nt got that far I have just finished snags tryed to close and was faced with mortgage problem. Also have'nt contacted AHP as have been letting solicitor look after everything but might start ringing around Monday!

So I basically want to see if other people in the same boat and if so we all just stick together on this as they cant do this to young broke buyers!! And your right its not affordable and this is what there supposed to be providing.. fingers crossed we hear what happen in that meeting this week..main thing get on to solicitor and put pressure on about this matter!!!
 
Re: Affordable Housing Devaluation (in particular Marrsfield, Clongriffin buyers).

Dubc456 said:
AFFORDABLE HOUSING DEVALUATION

To all Affordable Housing buyers but in particular to Marrsfield Clongriffin buyers..Don't walk away and lose deposit people have fought this and got the price dropped..send your evaluations into your solictor and fight it out..we are in a binding contract and the AHP are a scheme set up to help young buyers get a property at a discounted rate if they are not doing that now, the scheme is not doing what it says and they have to accommodate all us young buyers who now cant get mortgage approval - My situation is July 07 I put deposit etc down on 2 bed Apt in Marrsfield valued at 380,000 and was getting it for 275,000 now got evaluation in a few weeks ago and its 290,000 got on to solicitor and got him to bring this issue up with AHP solicitor and say its not affordable housing if your now only getting 15,000 of purchase price not the 33% discount they say they provide..So finally the other day he got word from AHP solicitor and they said they were having a MEETING with the AHP and the builder which in this case Pierse Homes, about this issue my solicitor asked was it just this case they remarked no there is alot- So basically everyone has done snags tried to close and now banks are not giving loans based on new evaluation I only qualify for 230,000 now..so I have to get 40,000 from no where. AHP can not expect young buyers entering into affordable housing to have 40,000 savings if so you would'nt be applying for Affordabling Housing. THEY HAVE TO BRING THE PRICE DOWN. Why do you think there having this meeting. AHP cant let this happen all these young buyers at the 11th hour when they have done snags and think there about to move in. Builder does'nt want to lose alot of buyers for apartments with the way the market is. EVEN IF U THINK OF PULLING OUT THE NEXT BUYER IS GOING TO HAVE THE SAME PROBLEM. The Apts in Marrsfield are registered under affordabling housing so can not be sold as normal- I asked solicitor can I buy it out without being locked into Affordable contract when I found out new value and there solicitor said No its registered to Affordable- so if you pull out the next affordable housing buyer as same problem- THEREFORE GET EVALUATIONS INTO YOUR SOLICITOR TO FIGHT FOR PRICE TO BE RENEGOTIATED. People have done it before we are in a binding contract its not our fault we cant get mortgage approval its cos of the new evaluation- we want to buy but cant so AHP can come to agreement with the builder and accomodate buyers.


IF A RENGOTIATION CANNOT BE AGGREED THEN WE CAN LOBBY TO BE FINANCED WITH SOME SORT OF LOAN FORM THE COUNCIL TO MEET THE SHORTFALL ON THE ORIGINAL MORTGAGE. AS I HAVE SAID PEOPLE HAVE BEEN IN THIS SITUATION AND AHP HAVE RENOGIATATED BUT IF WORST COMES TO WORSE WE CAN HOLD OUT AND FIGHT IT AS WE WANT TO BUY PROPERTY JUST NEED MORTGAGE APPROVAL.DONT WALK AWAY AND LOSE DEPOSIT AND TRY FIND A NEW PROPERTY TO BUY AGAIN?
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Your post might be interesting but the lack of punctution, use of spurious punctution (i.e. two fullstops instead of one), use of ALL CAPS and the lack of paragraphs makes it nearly impossible to comprehend.

Ill attempt to reformat it. Feel free to reformat it yourself if you are not happy with my attempt.
 
Re: Affordable Housing Devaluation (in particular Marrsfield, Clongriffin buyers).

Whatever- I have BIGGER things to be worrying about then my lack of punctution..like this matter..
 
Re: Affordable Housing Devaluation (in particular Marrsfield, Clongriffin buyers).

Dubc456 said:
Whatever- I have BIGGER things to be worrying about then my lack of punctution..like this matter..
Click to expand...

If your post cant be understood then nobody will be able to help you.

Have a look at your original post. Does it reflect your question?
 
Re: AH Devaluation (esp Marrsfield,Clongriffin) Banks only offer 80% of current valua

hi again dubc456

thank you for the prompt reply :) i am rather confused at the moment - i am wondering how did you get to do your snag list in Marrsfield without receiving a completion letter from your solicitor/Pierse Home. my completion letter basically says i have 14 days to snag the place and to close the deal. it seems that there has been a different approach to both of us. you seem to be much further ahead in the process than me with getting your snag done and trying to close and yet you didn't get a completion letter - very strange!!!

from what i could gather - i couldn't snag the place until it was completed - hence the completion letter i received this friday!! i feel under immense pressure now to snag the place, get AHP to reduce the price and close - all in 14 DAYS - which ain't possible or otherwise 'the interest will be imposed on a daily accrual basis' - maybe they are trying to put pressure on me so that i will close ASAP with no questions asked about revaluations and price reductions!!!

and your right - the clawback factor is not the issue at the moment - tis the inflated price we are expected to pay. the only reason i went for affordable housing is because i cannot afford anywhere on my own and need this help.

i would certainly advise you to ring the AHP asap and put your case forward in your own words - i was told my issue would be brought to the attention of the project manager and i am awaiting their decision. i will be contacting my solicitor next week!

i am also confused (tisa confusing day all around for me :) ) as to why if we both have been offered 2-bed apartments that your revaluation is much lower than mine. when i had made my decision and enquired about the price, i was told that because mine was one of the bigger ones, it would be more expensive. so if your apartment is smaller than mine, surely you should not have been charged 275,000!!! maybe there is a difference in the criteria of the valuers who have carried out our revaluations!! i can send you a PM with my details of my apartmetn if you wish :) let me know

all this drama and we just want an affordable home!!!
 
Re: AH Devaluation (esp Marrsfield,Clongriffin) Banks only offer 80% of current valua

Hi Again!

Sorry for confusing the situation my fault! I did get a completion letter saying I have 2 weeks to get snags done etc. I was getting confused too! Because my letter did'nt say 'the interest will be imposed on a daily accrual basis' so I thought you had done your snags and gotten another letter to say its ready but if you dont close the interest will be imposed on daily accrual basis.

So yes I got letter and I did my snags 2 days later but dont feel in any rush to be doing your snags if you want to clear this matter up with your solicitor. Ring Pierse and make them aware of your situation and say you will do snags when you have things cleared up? Thats what I did , mine is finished but there was still 1 or 2 small things to check before I signed of and so I have put that on hold now. Your apartment is'nt going anywhere they cant sell it to anyone else. And yes I agree they tried to push me to close really quick without even checking the last few things on the snag. So dont feel so under pressure.

With regard to the AHP I rang today and they are aware of my case and my request and they are reviewing everything going through all details and have'nt reached a decision yet. Also I would contact your solicitor quicker than next week as they take about a week to do things anyway!!! Its there job to handle all of this!

And finally regarding the valuation-on the day I put the initial deposit down in July'07 in the marketing suite in Marrsfield, I was given a list of up to 20 apartments specs. I was 3rd on list to go pick apt so when I got there I chose the one I wanted. Some were smaller and cheaper and some were bigger and more going for them. So I picked what I felt was the best. So maybe yours is bigger and is nicer than mine so thats why its valued more!!?? I dont know now Im worried bout this now!! How can u send me PM?

The stress is getting to me now..have been waiting and saving for this for ages when I did my snags went out and bought furniture I had my eye on and now this stress..its not fair!!!

Main thing hardcandy dont let Pierse put you under pressure there not going anywhere sort things out first!
 
Re: AH Devaluation (esp Marrsfield,Clongriffin) Banks only offer 80% of current valua

Hi All,

I have been offered a 2 bed apartment in Marrsfield and am just waiting for a viewing. I have been keeping myself updated about this crap about dublin citu council ripping us off with their valuations. listen everyone we can do something about this. there is no way they can get away with this.
Prices should be dropped to relfect the current market value of the aprtment no just the clawback value. This is causing people to either fork up the massive remainder on loose their deposit and their home. This is a complete joke and if we all fight this together we can get something done about it.
That is why i have emailed politicians and many departments in rte. if everyone does this and if we dont stay quiet something has to be done. I intend on sending emails to these people everyday. Please support me with this. I have included some of the emails i am writing to demanding something to be done.

[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected]

All marrsfield prospective buyers and current will you help and support on this issue.many voices complaining is better than one.
please help. Thanks:mad:
 
Re: AH Devaluation (esp Marrsfield,Clongriffin) Banks only offer 80% of current valua

Your affordable house just got more affordable.
It's not the end of the world.
 
Re: Marrsfield

newcarneeded said:
....

If the banks are insisting on 80% LTV then you may be snookered as to the funds they'll advance unless you can come up with a larger deposit. Alternatively you could investigate whether the developer would be willing to sell at 300k in a straight sale, i.e. not an affordable sale, in this case I don't think the 80% LTV applies. You would of course be paying 22.5k more for the same apartment but you would be free from any clawback issues in the future.
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The whole purpose of this scheme is for people to purchase houses which are affordable. If the price has dropped from 380 to 300 and the AH price was 300, then the house has become affordable - Happy Days! No need for this scheme then as houses are becoming affordable, just a matter of time...
 
Re: Affordable Housing Devaluation (marrsfield)

Hey, hows it going? I'm in the process of buying from Fingal CC in Carrington. The original terms were an asking price of €272,335 against a value of €358,500. I got a valuation done in August for €358,400. Everything has been at an advance stage and I was pushing to close. The council called my solicitor on Friday to tell her not to close. She said the council are negotiating a reduction with the builder. The property was revalued at €342,000 and the price is now €256,000. While im obviously happy at the reductions i'm concerned that the builder will pull out. After all, why would he reduce his asking price. Should the council not just reduce the clawback. It would appear that it's the council who are looking after themselves. I'm just wondering what stage you're at? If I had closed last week I would have a binding contract. If the AH negotiate and cant agree the builder could pull out, then I lose out on the house. Ok it's great to get a cheaper house but is it not better to end up with something rather than nothing????

C


Dubc456 said:
Hi hardcandy

I have a friend who got her apartment reduced by 30,000 although she had not gone as far as us she put her deposit down and 2-3 months later her apt dropped so her solicitor renegotiated a price reduction..I have also seen posted on this site someone sayin they got there evaluation into solicitor and got a reduction and also just heard of other friends of friends been in similar situation. With regard to clawback there is only a clawback if you make profit and it is the percent of discount you got it at based on the market value at the time- so never mind worrying bout clawbacks the banks will not lend you the full ammount well mine is'nt..I can only say for my situation ie Last year apt 380,00 and I paying 275,000 so that is 72% of the purchase price and my loan approval was no problem BUT this year based on the new evaluation of 290,000 they will again only give 72-80% of purchase price which is 232,000 so that is all Im approved for. So I presume if Im having this problem all banks are the same, that other buyers in this development are goin to be faced with same problem and this is why the AHP and builders are having a meeting?? I feel your bank will say the same and give you 80% mortgage on the 330,000. So you will have to come up with the difference..I personally dont have 40,000 savings as I said I would'nt have gone for Affordable if I did.

With regard to the difference in our evaluations, there are prob alot of factors and yes yours is probably bigger and different floor etc- and nicer!! so well done you!!!

With regard to your completion letter - I dont have a clue sorry I did'nt get one of those..I have'nt got that far I have just finished snags tryed to close and was faced with mortgage problem. Also have'nt contacted AHP as have been letting solicitor look after everything but might start ringing around Monday!

So I basically want to see if other people in the same boat and if so we all just stick together on this as they cant do this to young broke buyers!! And your right its not affordable and this is what there supposed to be providing.. fingers crossed we hear what happen in that meeting this week..main thing get on to solicitor and put pressure on about this matter!!!
Click to expand...
 
Re: AH Devaluation (esp Marrsfield,Clongriffin) Banks only offer 80% of current valua

Hi COLAKO

all this affordable housing is rather confusing at the moment. regarding Marrsfield, the builders seem to be dragging their heels with coming to a decision on the new valuations. my apartment was initially valued at 380000 and is now down to 330000 which is quite a drop and the price for me is 275000. the AHPartnership are trying to sort it out at the moment but it is going to take some time. i am thinking of possibly pulling out as the property market has dropped so much that i could now get my own place without all the ties of afforable housing for the same price. these apartments are just not selling on the private market and i think these builders will be very sorry if they don't come to an agreement as people are just not going to pay such inflated prices on the private market. my advice is to hold tough for the moment - this is meant to be affordable housing after all!!! good luck
 
Re: Marrsfield

Just a quick question. Did you pay a deposit?
I dont mean a booking deposit but a further desposit. A funny thing happend with me. I was getting a 100% mortgage, put down 3,000 for the booking deposit and then was close to signing the deal when the builder said he wanted 5,000 desposit. Even though I was about to give him the full purchase price of €272,335. He wanted €5,000 and then €267,335!!!
The point was that they say that to have a legaly binding contract you must pay a deposit. This can be €5.00 but my builder wanted €5k......Anyway, might be a technicality but if you didnt pay a desposit you may not have signed a legaly binding contract unless it said so....

While I'm on, when I was about to close the council contacted my solicitor to say not to. They're renegotiating with the builder on the price. I'm worried now the builder will walk away of scupper the deal. Do you know if they're tied into selling the apartments?

Thanks



dubc123 said:
Wonka, thanks for that.
Unfortunately it keeps coming back to the fact that I've signed the contract and the price is the market value at that point. I've instructed my solicitor to advise them that I won't be going ahead with it. We'll see if anything comes out of that.

35ivorytower, I'd say there are a few of us in the same boat!
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Re: AH Devaluation (esp Marrsfield,Clongriffin) Banks only offer 80% of current valua

hi colako

in reply to your question - yes, i have paid a deposit on marrsfield. i paid an initial booking fee of 3000 and then another 5000 on top of that i.e. 8,000 in total. my solicitor has told me that i have a legally binding contract. if i pull out now, i will lose this 8,000 and i could be sued.

friom what i know, the builder has to give at least 20 percent of these apartments over to affordable housing according to some housing act. thus, they are tied into selling these apartments to affordable housing. no-one is going to want to buy from affordable housing with the way the market is going at the moment so the builders will just have to agree to a reduced price!!
 
Re: AH Devaluation (esp Marrsfield,Clongriffin) Banks only offer 80% of current valua

Hi, have any of you received a letter from the AHP reducing your clawback on these marrsfield apartments?
 
Re: AH Devaluation (esp Marrsfield,Clongriffin) Banks only offer 80% of current valua

No I have received no letter, only received word yesterday from my solicitor to resend in my new valuation and Approval in principle letter from the bank to say what I am approved based on the current valuation which is 90,000 less than last year- which is why Im fighting it out for a renogatition.

I have also been talking to a woman from AHP and she said there still having meeting's and working on getting everyone from Marrsfield a better outcome.

Can I ask what exactly was letter about? Are you happy with settling for reduced clawback instead of working on a reduced price?
 
Re: AH Devaluation (esp Marrsfield,Clongriffin) Banks only offer 80% of current valua

It seems that there is no room to maneuver when it comes to dropping the actual affordable price that they are charging us and the only area they can/will help out in is with reducing the clawback percentage. From looking at other threads on this site it appears that this is the case.

It is very unfair as you would think the whole idea of an affordable housing scheme would be to provide houses/apartments at an affordable price for those that meet the criteria but unfortunately for any of us that signed contracts over the last year and half or so, we have not really benefited from it and in reality we are paying close to open market value as it currently stands.

The way it looks at the moment is, if you have been made an offer and accepted it you can either:-

· Walk away, lose your deposit and wait for another offer as the prices of new developments will be more realistic or the scheme will collapse.
· Take the reduced clawback and close the sale.
· Buy on the open market which is a lot more viable now in the current climate which still will mean losing your deposit.


Personally I am going to go ahead with it, it is a lovely apartment in a great area and when we ever get out of this slump and property prices stabilize Marrsfield will look a good investment down the line when all the work on this project is completed.
 
Re: AH Devaluation (esp Marrsfield,Clongriffin) Banks only offer 80% of current valua

Urgent! Urgent! Urgent!

If you have only paid a booking deposit (usually 3,000 euros I think) this is FULLY REFUNDABLE if you decide not to go ahead.

Only when you sign contracts are you legally committed to purchasing.

* Check EVERYTHING out and ask loads and loads of questions!!!
 
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