Current market value less than affordable price paid?

V

Vicks

Registered User
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Hi, I suspect that my apartment is only worth 200,000 at the moment, which was the affordable price paid four years ago. Is anyone else's property now worth the same or less than the affordable price paid? I am in a one bed apartment and my circumstances are that I need if possible to get a bigger property. I am thinking I might have to try and sell despite the bad state of the market. Is anyone in the same boat?

Thanks.

Vicks
 
Hi Vicks,
if you're planning on selling make sure it's gone though Land Registry and suss out your claw-back....it may not be as simple a process as you think. From readng various posts here a number of people have come up against the Land registry issue when it came to selling and as far as I know it can take a couple of years for an affordable housing property to get registered.
FTB1975
 
Hopefully the land registry would not be an issue as I am in my apartment nearly four years now. I emailed the council to see if they have approved valuers. In their response they mentioned the clawback. I suspect that the apartment is worth less than what I bought it for at this stage as there are one bed apartments going for 190k nearby and one in my own development for 200k. It is hard to know whether to try buy out the council when prices drop more, rent it out and see it as a long term thing or try and sell now and cut my losses.
 
Vicks,

I'm in the same position as you at the moment. Everything was going grand and I sent the valuation of €200k to the council. However, they are disputing this and stating that they 'believe' the property is now worth €250k.

There's no way it's worth €250k. The development is a sh!t hole - half empty, car park is constantly being broken into, windows smashed daily, many of the units are rented (majority being rented to scum). This has driven the value way down and is a big constrast to other developments in the area. My question is, how can the DCC valuer possibly know the area well enough to consder this aspect of valuing the property?

The value of 200k was given by 2 local reputable estate agents.

Basically, they've had the valuation for 1 month. They done nothing for the first 3 weeks and now the person dealing with it is out for the next week. They are a bunch of jokers.
 
DCC contacted me in relation to the valuation. She wouldn't say how much she valued the property at until she gets approval.

My question is: How did she value the property? She never contacted me, or has never been to my apartment?

Does anyone have any idea how these people operate? It's beyond belief that they can value a property they have never been to!
 
Estate agent valuation is not enough - valuation has to come from independent valuator. You get a valuation certificate that you can send into DCC.

The bank that you remortgage with require this too and it had to come from and independent valutor. On your first purchase, they may have paid for the valuation which is approx €100 or so.

When I had the LTV ratio reaccessed on my mortgage, 2 years ago, I had to get an independent valuation done for the bank.
 
I didn't realise you could buy a house out under the AH scheme until now.

Is this worthwhile if your apartment is already in negative equity?

At least you have more control, can rent out etc. - however, what about in the case where you think the apartment is unsellable due to nearby vandalism - is it still worth buying out?
 
What a mess.

This scheme needs to be wound up fast. There is a duty of care to the owners and to the taxpayer for which the the Local Authorities do not have the required level of competence.
 
The apartment ive been offered theres only difference of 5 grand between private and AH price, but sure the only advantage is that you can get 100% mortgage on AH. Nobody these days saved for a mortgage deposit of 8% as nobody believed the economy would skydive so fast.
 
Trevorku,
Are you buying thru Shared Ownership? Im buying an AH property and there's no way any of the AH approved lenders are giving out 100% mortgages anymore! Even 92% mortgages are few and far between.....who did you go for for your AIP? AIP is not an offer...it doesn't mean you'll get that much...my AIP was 255k...by the time I got my offer it was 232k.....so be wary!!!!!

A 5k difference in price between AH and open market and you're still going for it??? HAve you looked into the restrictions on AH...your-clawback, not neing able to sell or rent out the property without incurring repayment of the claw-back.
 
How does one go about getting an independent valuation as opposed to an estate agents valuation?
 
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