Revaluation, bank won't loan enough to purchase

N

Not_near_it

Registered User
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35
Hi all,

Some info.

I've paid a deposit and signed contracts on an AH back in August last year.
Had a valuation done back then and secured a mortgage based on a LTV of 90ish %.
My mortgage offer had expired and I applied again, there was another valuation done a few weeks ago and the valuation has dropped by a large amount. Based on this valuation I can't borrow enough to buy the property as the bank will only lend me 80% (LTV 80%). I have no more savings.

What happens now that I can't borrow enough to purchase, is my contract null?

Thanks.
Nni.
 
Hi sorry too here about mortgage councils are taken way too long to do things, your solicitor should be able to tell you, maybe council might reduced price but wouldnt hold your breath
i wish you all the best what ever happens
 
I have talked to the council and they have no interest in reducing the price.
Said it is up to the developer to reduce the price.
 
Which council are you purchsasing with? I'm in the same situation although haven't signed my contracts yet. You really need to push a price reduction....and I mean PUSH it!!!! Just asking won't get you anywhere.....I'm with DCC and am waiting on word back about my price reduction, I was told about 3 weeks ago and I quote "We'll do whatever it takes; price reduction, re-valuation or both until you and your lender are happy with the mortgage you can secure"....believe me if it turns out to be "Sorry no can do" I'm going straight to John KIlraine in RTE...he's been putting up posts here looking to talk to people who are in this very predicament...I have a feeling he could be inundated once the price reductions are announced!
 
I've been pushing for the reduction alright but I'd like to know where I would stand legally if they don't reduce the price and I can't complete due to no mortgage.

Thx.
 
I think you are in a better position than they are tbh. There seems to be more properties than people wanting to buy them at present. Contact the developer or estate agent directly or get your solicitor to do it and hound them. They just want the houses sold and I am sure they would be willing to renegotiate the price.

Good luck, fingers crossed for you
 
Hi Not_Near_It,

Have you had any joy? I heard back from DCC yesterday about my price reduction....they dropped the price by 15k....amounts to 5 or 6% reduction so its a long way off the 20 - 25% as quoted on the news/in the papers about a month ago when DCC first mentioned it.

I needed the price to come down by another 8k to secure my mortgage, even the valuation DCC did about 2 weeks ago is still 10k more than the valuation for the lender that was carried out about 5 weeks ago...effectively saying my property has risen in value over the last 5 weeks....AS IF!!!!:D

I told them I wasn't at the point of backing out YET but.....and left the sentence hanging in the air. The response was "I see where you're coming from. Leave it with me and I'll speak to my boss to see if anything can be done for you".

Depending on whether you have your heart set on your property it might be worth reminding them that they're in debt up to their eyeballs and we all know it so if they want to rid themselves of some of this debt it might be worth reducing the price of these properties!!!

Let me know how ya get on, best of luck
 
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