Re: Valuations way out of line with market value

D

Davidium

Registered User
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22
Hi Folks,

I was wondering if anyone here has had any correspondence with Kildare County Council or any County Council with regard to valuations for affordable housing being vastly different from market value. To give an example I was offered an apartment under the affordable housing scheme with Kildare CoCo valuation at 320K however an independent valuation carried out for my mortgage provide put the value of the property at 285K. To be honest I didnt question it much as I was happy to be getting the apartment in the first place however I have now seen apartments of similar square footage in very close proximity (with a few hundred feet) to the one I am in the process of buying being offered at 245K.

To me this is a massive difference that cannot be attributed simply to location. I'm aware that there has been a dip in house prices but surely not to this extent? I signed the contracts for the sale back in May and for whatever reasons whoever was dragging their feet I am due to snag and hopefully close within the next few weeks.

As Ive mentioned I'm very close to closing on the apartment that I have been waiting months for but the thought of being saddled with a mortgage that is way in excess of what I could be paying coupled with restrictive clauses that are detrimental to me is enfuriating. I feel I am being royally shafted by a scheme that is supposedly affordable - how can they claim its affordable when the properties being offered are valued way in excess of current market value. Is there anything I can do at all or does anyone have any suggestions?

Davidium
 
In my opinion this is a scam which shames all those associated with it. It is an unregulated mess which all supposed consumer champions has thrown a blind eye to.

A large number of people have been in your position and negotiated a lower price. Search for threads that Swordshead in particular has contributed to.

As ever each Local Authority has it's own rules, own contacts, own shambles.
 
Cheers for the feedback Howitzer, much appreciated. I dont think I will be able to do much given that I am so close to closing but as you've said its an unregulated mess. Yet again another half-baked idea with a half-arsed implementation from a complacent government that has opened the trough to fat cat vested interests from all sectors of industry.

I've said it before and I'll say it again - Democracy doesnt work!
 
davidium, can you back out at this stage, have you spoken to your local authority regarding this matter, the difference in valuation seems very large. As its an apartment what happens in a few years if you want/need a bigger space? seems like you will be in a major hole financially.
 
It is possible to back out even after the snag has been done! I was told (on friday by a 100% reliable source) that someone in my block has backed out after completing their snag and the ahp are letting them...
 
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pc7 - I have had no correspondance with my local authority yet. I only noticed the apartments on Sunday and emailed them last night. As of yet no reply but I will keep hounding them throughout the day. You've hit the nail on the head, my biggest concern is knowing that as its an apartment and the likelyhood of me requireing a larger place for a family etc being quite high this puts me in a major financial deficit.

swordshead - cheers for the feedback at least I know that I have the option to back out but this would be a last option and would depend on how bad the devaluation has been.
 
swordshead said:
It is possible to back out even after the snag has been done! I was told (on friday by a 100% reliable source) that someone in my block has backed out after completing their snag and the ahp are letting them...
Click to expand...
Did this person get back their full deposit as well?
In general on house deposits (not booking deposits) will councils refund these if you back-out?
 
If you have signed your contracts I wonder how easy it will be to break out of it now. Did you check with your solicitor?
 
bean said:
Did this person get back their full deposit as well?
In general on house deposits (not booking deposits) will councils refund these if you back-out?
Click to expand...
No idea..all i heard was he had got to the snagging stage..decided to back out and the ahp let him! Whether that meant losing his deposit i dont know!
 
Can someone please shed some light on my situation or is anyone else in same situation. im in the process of buying an affordable home with cork city council.
on the letter it said the market value was 315k but when i rang the auctioneers enquiring about the selling price of this property it was actuall 285k?!!
i rang the council and the girl on the phone couldnt understand what i was talking about when i tried to explain that i would be paying a higher % clawback than i should be , she kept telling me youll be paying the same price anyway so ignore that and then when i mentioned clawback she said shes just get her supervisor to ring me back because she didnt know.
i never got any phone call back. i tried ringing them again a few days later and keep gettin an answering machine
i dont know what to do next? anyone else in same situation ?
 
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