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MANAGING A DOWN VALUATION
A surveyor will always be acting for a lender and in most cases will consider a property to be worth less than the price agreed. This can be an inflated selling price by a seller, condition of property or the lenders criteria for exit if default occurs and is often subject to 90 and 180 day sale valuations.
The end result can be lenders not offering the full amount required your client the buyer. This often happens after commitments have been made and with the current market valuation lead times have extended.
Generally, down valuations come to light during the survey or when the lender asks the surveyor to proceed with caution due to cyclical market conditions that may lead to inflated market conditions.
It can also be as a result of more challenging property conditions such as :
- Non standard materials on a dwelling
- No or dilapidated kitchen/bathroom
- Land/Agricultural restrictions or
- Status’s such as Semi- Commercial
Beat Finance can provide funding when others struggle due its understanding of the lending market on property.
You may find your client wants the seller to come to the party and reduce the asking price but this seldom happens.
You can search for another lender for you client but that takes time and the seller often loses confidence or it may be time sensitive and you feel you have very little options for your client.
So what can Beat Finance do to help – Believe it or not a lot and a recent transaction saw us support a downward valuation by a short term secondary loan enabling the deal to be completed on time.
The Managing Director of Beat Finance , Thomas Wall, commented: “Down valuations can put your clients transaction at risk, you may not have access to the panel of lenders that allow a deal to be tailored in a more creative way. We can work with your choice of primary lender or take over the whole deal for you but you will get a Yes or No quickly – No maybe’s at Beat Finance solid decisions backed by great lenders who act at pace.
If you have a client situation that needs specialist lending call Best Finance or DM one of the team direct.
LEGAL DISPUTES A Tomlin Order is a form of consent order used in the context of property disputes. It is an agreement between parties in a dispute that sets out the terms of a settlement, without the need for a court hearing or judgment.
TAXING TIMES Self Assessment Deadline passed but what if you have a large tax bill , you have submitted on time saved the fine for filing late but the tax assessed cannot go away.
MODULAR HOMES FUNDING Modular homes have changed since the early 50’s prefabs. Todays modular homes are green , energy efficient and are constructed in a factory.
EXTEND YOUR LEASEHOLD Rising prices are excellent for freehold but what about leasehold. The value of a property decreases as the leasehold shortens so how do you inject value into a shortening leasehold. T he simple answer is by extending the leasehold.
RISING COSTS Rising inflation and cost of living can make it harder for introducers to meet their client’s needs.
CHAIN FREE With there being a lack of available property stock in many areas and elongated completion timescales Chain Free purchases seem the ideal option. Bridging plays a big part in delivering a solution when property becomes available ensuring that with higher demand and property being snapped up that property stock is becoming a premium in this area. Speed is key and bridging allows your clients to complete in time scales that are not feasible using traditional means other than cash. Bridging turns your client into a cash buyer instantly and ensures they can accelerate the speed of a transaction. It is clear that property sellers with a chain-free homes on the market can almost be guaranteed a quick sale. This is where bridging especially helps if for example you need time to profile for the right mortgage. With increasing mortgage rates we expect an upsurge in Chain Free stock and as a regulated broker our breath and depth of offering allows us to offer a service above and beyond the normal unregulated brokers. An ageing population and empty nesters downsizing generates more housing stock and speed is key. This is clearest in organising a bridge for Chain Free purchases and exit for regulated clients. Why let your client pass over the home of a lifetime because their property is stuck in a chain. By working with the team at Beat Finance we help to build the bridge to a better future and enable you to purchase that chain free houses whilst selling your current residence. With wide market access our extensive network of lenders and bespoke funding lines enable you to build a bridge to the future. Beat Finance keeps the property market moving and ensures it clients and its introducers do not get let down. If you have clients that you have nurtured for years but present you with problems you need help on then work with us to deliver the future they can achieve not dream about. Call or DM on of the team direct if you want to grow your income stream and deliver results for your clients whilst concentrating on your core business. Let us deal with your complex cases. We cover the whole of the UK and also offer ex-pat funding.
SAVING FALL THROUGH SALES Fall-throughs refer to a property sale failing before completion. This can be various reasons ranging from chain breaks, survey issues or mortgage approval issues to name a few.