I had a similar experience this week, no names mentioned, where the lender valuation came back at £170k against an already heavily discounted, end-of-development, ex-show home, with a bricks-and-mortar purchase price of £185k. This was (almost) successfully challenged and came back at £180k, a shortfall of £5k.
So what happened, you ask. Well, the developer immediately threatened the client (using its ‘must exchange within 28 days’ rule) into using its own mortgage broker who would guarantee the necessary valuation. Hmmm.
I have known my client for many years and recommended a specific lender and product. Therefore, in my opinion, and by definition, he is now getting ‘second best’ for his personal situation. Need I say more?
M R Hird
Step-Up-Finance
