Mortgage conditional on valuation.

S

sw2

Guest
Hi there,
was wondering could anyone help me. Have just "bought" a new build and about to sign final contracts. On last visit to ebs(our mortgage provider) there was a casual mention of another valuation when the house is complete (4 months away). It was valued at the right price(280,000) last week. When I mentioned this to the solicitor he now says that we cannot sign contracts if the mortgage is conditional. This was never mentioned in any literature we got from the bank.I really dont know what to do now as the solicitor says we should just refuse to do this and of course the bank is saying they will only release a mortgage of the amount of the second valuation. Any help would be much appreciated. We are first time buyers.
Many thanks
 
what your bank is saying is the norm.
lets say the house value goes down at the valuation on completion, they aint gona release money.
so they will only release say 90% or 92% of the value of property at completion.
 
On last visit to ebs(our mortgage provider) there was a casual mention of another valuation when the house is complete (4 months away)

A final valuation is a standard condition for a house under construction. its required by the lender to ensure the property is fully complete, as they will not release funds until the property is finished and habitable. Im surprised your solicitor has not come across this standard condition before.

Is the final valuaton condition noted in the loan offer
 
Thanks very much for your replies. I thought it seemed normal to it was the solicitor who got us really worried wont allow us to sign the contracts. The houses in the estate were originally 405,000 last year so the bank has said there should be no problem with a 280,000 valuation.
Its not mentioned in our loan offer.
 
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