Valuation of Affordable House

C

COLAKO

Registered User
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Hi

I have been offered a new 2 bed in Crrington under the affordable housing partnership. Everything has gone so well that I'm just waiting for something to go wrong. One are that Im concerned about is the value. Fingal sent me the clawback letter saying the marker value is €358,000 and I am paying €272,000. I spoke with an estate agent friend who said that he wouldnt pay more that €315,000 for any 2 bed in the area. I know selling prices and market value may not always be exactly the same but the valuation by Fingal seems very high.

IIB are lending me 100% assuming the loan is below 85% of the value. I heard on the grapevine they since lowered this to 80%. If I factor this in, I need a value of €325,000 (if it's85%) and around €339,000 if it's 80%. The girl in Fingal told me that IIB were always disputing the valuations (probably with merit). I could be forced stump up the difference if the valuation comes back very low. As I dont have much cash this could mess up everything. Did anybody else have a similar experience???

Any comments would be appreciated
 
Hi Colako,

Just wondering, what your clawback is?

We had kinda the same problem with our clawback.

We are buying our house for 305
KCC valued our house at 380 with a clawback of 20%.
The Bank will value your house for you too. There valuation came in at 360 which would mean the clawback would be 15%. So I wrote to KCC and sent a copy of valuation from bank and they reduced it to 15%.

They wont reduce the price of the house but the clawback

Dont mind the council, they will reduce it, dont even mention having to put money to it, its Affordable Housing so you wont have to pay the difference.

Just keep at them, they told us that they wouldn't reduce the clawback but with the copy of the valuation sent to them they had too.

Oh and it is a 80% mortgage that is offered to Affordable Housing
Good luck
 
Hi Colako,

I'm buying a 2 bed in carrington as well under affordable partnership. My purchase price is 274 and valuation by Fingal is 370. I was offered this back in March and so have already done all the paper work etc but haven't drawn down mortgage yet as the block I bought in is not yet complete.
When I signed contracts my solicitor was concerned the claw back was too high but the council wouldn't revalue and I decided to go ahead with it anyway as carrington is perfect for me and I'm buying with a view of living there long term.
The block Im buying in is due to be completed in September at which point my lender will do a valuation and I plan on sending the council that valuation (im sure its bound to be lower than 370) and putting pressure on them to reduce the clawback. Seeing as this method worked for carrieann im hoping they might adjust the claw back to reflect the actual market values at the moment.

By the way what block are you buying in?
 
It's block G. Second floor. They value it at exactly €358,556. The clawback issue is one thing but your mortgage lender wont budge the valuation if they feel it's been overvalued. This could mess up the mortgage as they wont give you a loan based on an inflated valuation.

Im just keeping my fingers crossed.

C
 
Hi Colako,

Well further to my post yesterday when all I was worried about was the claw back I actually got a call from my solicitor about what you are worried about. I'm buying in Block D 1st floor and my initial value back in March was 370. I signed contracts with a condition my solicitor put in saying the contract was subject to a valuation by my lender. Today Elliot's returned the contract refusing to accept that condition. My solicitor is advising me to refuse to sign as she thinks when my lender values the place it will be worth far less than 370 and it's possible they might refuse to lend me 100% of the purchase price which is 274. So I got onto my mortgage broker who told me that in order to borrow 274 the apartment needs to be worth 342 minimum. Obviously I'm really worried about this and am not signing contracts until I get my lender to do a valuation. But I'm really worried the valuation will come back as less than 342 and I won't be able to go ahead with purchase as I don't have any cash to pay the difference.
So I'm keeping my fingers crossed now to and hope to arrange for my lender to value it asap.
Do you know when you can value block G?
 
So what happend with your solicitor? I was speaking to IIB again and they have reduced the loan to value criteria to 80%. This makes it even tighter......the value will have to be at least €340,500 for me to get my 100% mortgage. If it's not I have to make the difference i.e. pay a deposit or bigger deposit.........The worrying thing is, I see places on sale in Northwood (temple gardens,lawn etc....for €299,000. two bed's). Not wanting to put a dampner on yours but a first floor for €370,00 seems way ove the top also.....Who knows, the problem is everybodies trying to get rid of the places so the prices are tumbling but it's probably not the trus value.

Thanks
 
Well my solicitor is sending a letter back to the developer's solicitor explaining why we can't sign. I rang Hooke and Macdonald on Friday who are selling the carrington apartments. They told me 2 beds are selling for between 240-280 depending on aspect, view, etc. I rang P.Elliotts as well and they told me that an apartment similar to mine (same size, floor, etc) sold for 366. So thats something positive anyway. My apartment needs to be worth minimum 342k in order for me to get mortgage I need. They have a few different styles of 2 beds and mine is the biggest at 74 sq meters so fingers crossed. They told me it would be about 3-4 weeks before I can get my valuation done and I'd imagine it will take that long for my solicitor to get a reply from their solicitor so nothing I can do now but wait.

I thought Block G was completely finished though so what is the delay with you getting your valuation done? At least then you'll know one way or the other.....
 
Block G is finished alright. Asked for valuation last week and it was ordered last Friday. Should have organised it myself. With the council involved who knows how long it takes for a guy to just call and arrange one. I'll let you know what it comes back at. The price difference between yours and mine under the aff is appx €4k. So we should be similar in value. Mine is 70sm but second floor, south facing...really nice shape.

Keep you posted...should be today or tomorrow when I know.

 
p.s. I wouldn't listen to anything regarding the valuation from the Builder. They will obviously tell you that. By the way, If the valuation is less...you just have to increase the deposit. The bank just reduce the loan...ie they will only loan 80-85% of the real value. So it's not the end of the world unless like me, you have no money!!! lol

C

 
Sorry...didnt realise you're in the same position as me exactly. I'm optimistic that the value will be over €340,000. (€342K for you) I think it will be tight either way. I'm preparing for a scenario where I have to pay a couple of grand or something. Are you getting mortgage with IIB also?

C


 
Carrieann

My clawback is 23.7% or something.

I'll sort the clawback issue when I get over the first hurdle. I will definately have to pay lump sum if the valuatuion is less that €340,000. IIB Bank only provide 100% mortgage if the council price is less that 80% of the true market value. If that 80% is €335,000...I get a loan for €335k and have to pay €5k.

I already paid the €3k booking deposit so that's some relief. Anything around the €336,500 to €340,000 will be ok. I'll then send copy of the valuation and letter to council and find a few quid if I have to.

Thanks

 
I went through a simular suitation a few months ago - the valuation was much higher than the actual price. I got IIB to carry out their normal valuation and realised the difference - i then got a private valuer out to look at the property. I took both valuations to the council and after a lenghty argument I got the clawback lowered and the valuation dropped.
 
Tracey

What was the difference in the valuation, what type of property? what area was it in?

Thanks
 

Colako - I'm in the exact same situation as you. Mine is 74sq meters, on 1st floor and has a view over the park which makes a difference to the value. So all in all we're in the same boat. I'm not with IIB though, my mortgage is with Haven. I know it's not the end of the world if they reduce the amount they are willing to loan me but it will mean I can't afford to buy any furniture for months!!!! I'm by no means taking the builders valuation for granted as the true value but at least its a good 20k over the minimum value I need so thats something.
Best of luck with the valuation, will you let me know how you get on?
 
TMS

Valuation back today at €358,500. I need not have worried. I imagine you should be close enough to that. I think you'll be able to buy a few chairs etc....when you move in! Anyway, sure would be grand siiting on the floor of your own new place!

C
 

Thanks for letting us know Colako, you've definitely put my mind at ease! Best of luck with the move
 
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