Bank Valuations
#1
Just Joined
Thread Starter
Joined: Nov 2011
Posts: 5
Bank Valuations
I am looking to purchase a property and looking for a small mortgage.
However.................the bank have valued the property at around 80% of the agreed purchase price (which I thought was a reasonable deal !!).
1. Is this normal practice by banks as a reaction to past lending practice ?
2. Can anyone give me their experiences or knowledge of bank valuations as this is a real worry ?
Very grateful for any advice
Thanks
However.................the bank have valued the property at around 80% of the agreed purchase price (which I thought was a reasonable deal !!).
1. Is this normal practice by banks as a reaction to past lending practice ?
2. Can anyone give me their experiences or knowledge of bank valuations as this is a real worry ?
Very grateful for any advice
Thanks
#2
Re: Bank Valuations
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Rosemary and Graham
BE is a very large expat website, so if you have problems finding your way around we have concierges who will try to direct you. The moderators for the Spanish forums are Mitzyboy and Fred James, moderators are there to ensure that the site runs smoothly within the rules of BE. Problems and complaints should always be addressed to a moderador who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are friendly and helpful with a wealth of knowledge of the issues of living in Spain. At the top of the page you will find a quirkily named thread called Free Beer which is full of important and useful information. Hope you enjoy your time participating in the forums.
Please let us know if you need any further help.
Rosemary and Graham
#3
Re: Bank Valuations
I am looking to purchase a property and looking for a small mortgage.
However.................the bank have valued the property at around 80% of the agreed purchase price (which I thought was a reasonable deal !!).
1. Is this normal practice by banks as a reaction to past lending practice ?
2. Can anyone give me their experiences or knowledge of bank valuations as this is a real worry ?
Very grateful for any advice
Thanks
However.................the bank have valued the property at around 80% of the agreed purchase price (which I thought was a reasonable deal !!).
1. Is this normal practice by banks as a reaction to past lending practice ?
2. Can anyone give me their experiences or knowledge of bank valuations as this is a real worry ?
Very grateful for any advice
Thanks
quite normal, they do not do 100% nowadays. Think if buying from developer you can get 100%.
#4
BE Forum Addict
Joined: Aug 2006
Location: Velez-Malaga
Posts: 4,915
Re: Bank Valuations
Exactly the same thing happened to us when we bought our house almost 9 years ago, so I don't think it is a recent development! I was a bit concerned about it, but our lawyer (who appears to have done everything right as far as I am able to judge) said it was very common, and it didn't affect the amount of the mortgage the bank was prepared to give us. As we paid off the mortgage a few years later when we sold our house in the UK and moved here permanently, it doesn't really make any difference now.
#5
Ex Expat
Joined: Oct 2006
Location: West Midlands, ex Granada province
Posts: 2,140
Re: Bank Valuations
Do you mean that (for example) you've agreed to buy it for £100k and the bank have valued it at £80k? So therefore the bank willl lend you a percentage of £80k?
I suppose it depends on how much mortgage you require and whether you are still prepared to spend £100k on something the bank have only valued at £80k.
I suppose it depends on how much mortgage you require and whether you are still prepared to spend £100k on something the bank have only valued at £80k.
Last edited by scampicat; Nov 29th 2011 at 1:28 pm.
#6
Re: Bank Valuations
Do you mean that (for example) you've agreed to buy it for £100k and the bank have valued it at £80k? So therefore the bank willl lend you a percentage of £80k?
I suppose it depends on how much mortgage you require and whether you are still prepared to spend £100k on something the bank have only valued at £80k.
I suppose it depends on how much mortgage you require and whether you are still prepared to spend £100k on something the bank have only valued at £80k.
So on a valuation of 80K for a property you might pay 100k for, the mortgage can be no more than 48k
#7
Re: Bank Valuations
he said thanks, but no thanks
#8
Ex Expat
Joined: Oct 2006
Location: West Midlands, ex Granada province
Posts: 2,140
Re: Bank Valuations
Our buyer has been offered 70% of the valuation.
#9
Just Joined
Thread Starter
Joined: Nov 2011
Posts: 5
Re: Bank Valuations
I’m sorry if I’ve confused things here...what I was trying to ask was:
The bank have offered me up to 70% of THEIR valuation of the property (or the selling price if it is lower)
I offered the vendor 130,000 prior to the bank making their valuation – which seemed to be a reasonable price based on previous sales, position etc.....etc.....
However, the bank valued at just over 100,000.
I was interested if this was normal of banks trying to reduce their exposure to risk and common practice in these circumstances ?
Any thoughts/experiences gratefully received.
The bank have offered me up to 70% of THEIR valuation of the property (or the selling price if it is lower)
I offered the vendor 130,000 prior to the bank making their valuation – which seemed to be a reasonable price based on previous sales, position etc.....etc.....
However, the bank valued at just over 100,000.
I was interested if this was normal of banks trying to reduce their exposure to risk and common practice in these circumstances ?
Any thoughts/experiences gratefully received.
#10
Just Joined
Thread Starter
Joined: Nov 2011
Posts: 5
Re: Bank Valuations
PS - Am happy to receive PM's if necessary.
#11
Re: Bank Valuations
I’m sorry if I’ve confused things here...what I was trying to ask was:
The bank have offered me up to 70% of THEIR valuation of the property (or the selling price if it is lower)
I offered the vendor 130,000 prior to the bank making their valuation – which seemed to be a reasonable price based on previous sales, position etc.....etc.....
However, the bank valued at just over 100,000.
I was interested if this was normal of banks trying to reduce their exposure to risk and common practice in these circumstances ?
Any thoughts/experiences gratefully received.
The bank have offered me up to 70% of THEIR valuation of the property (or the selling price if it is lower)
I offered the vendor 130,000 prior to the bank making their valuation – which seemed to be a reasonable price based on previous sales, position etc.....etc.....
However, the bank valued at just over 100,000.
I was interested if this was normal of banks trying to reduce their exposure to risk and common practice in these circumstances ?
Any thoughts/experiences gratefully received.