djtonykirl
Registered User
- Messages
- 9
Hello,
My sister is in the throes of starting a self-build house on a site gifted by my parents. Without going into all of the figures, the LTV percentage is coming in at 69.76%. The scheme requires an LTV of 70%.
The difference in € terms is the site valuation of 60,000 (as determined by the valuer from the bank) versus a figure of 59200 (70%). The site was valued a few weeks prior with a value of €55000 by a valuer engaged by by sister.
My sister has been told by the bank (via the mortgage broker) that the valuation cannot be changed. The broker outlined 3 options:
1) Disregard the HTB scheme
2) Apply to another bank and ensuring that the sums work at 70%
3) Approach the Revenue to see if the application can be approved
Option 1 poses a significant cost to my sister
Option 2 seems doable but will take time to work through
Option 3 is an unknown based on the Revenue website as I don't see any guidance on how a situation like this can be discussed with them.
From my perspective, the bank have created this mess as they have already sent a letter of offer to my sister which stipulates that the draw-down of the second tranche of the mortgage is dependent on having documentary evidence of having the HTB scheme approved. The valuer appointed by the bank has scuppered this with their subsequent valuation of the site. The bank according to the broker will simply not accomodate a revised site valuation in this situation.
I was wondering if anyone has been in similar situation previously?
Is it reasonable for the bank to not permit a further site revaluation? I do appreciate that there has to be realistic valuations based on the past experience of property prices. I think that the difference in this case is pretty insubstantial.
Is there scope for a conversation with the Revenue in this type of scenario?
Any other advice on how to deal with this situation would be greatly appreciated.
Tony.
My sister is in the throes of starting a self-build house on a site gifted by my parents. Without going into all of the figures, the LTV percentage is coming in at 69.76%. The scheme requires an LTV of 70%.
The difference in € terms is the site valuation of 60,000 (as determined by the valuer from the bank) versus a figure of 59200 (70%). The site was valued a few weeks prior with a value of €55000 by a valuer engaged by by sister.
My sister has been told by the bank (via the mortgage broker) that the valuation cannot be changed. The broker outlined 3 options:
1) Disregard the HTB scheme
2) Apply to another bank and ensuring that the sums work at 70%
3) Approach the Revenue to see if the application can be approved
Option 1 poses a significant cost to my sister
Option 2 seems doable but will take time to work through
Option 3 is an unknown based on the Revenue website as I don't see any guidance on how a situation like this can be discussed with them.
From my perspective, the bank have created this mess as they have already sent a letter of offer to my sister which stipulates that the draw-down of the second tranche of the mortgage is dependent on having documentary evidence of having the HTB scheme approved. The valuer appointed by the bank has scuppered this with their subsequent valuation of the site. The bank according to the broker will simply not accomodate a revised site valuation in this situation.
I was wondering if anyone has been in similar situation previously?
Is it reasonable for the bank to not permit a further site revaluation? I do appreciate that there has to be realistic valuations based on the past experience of property prices. I think that the difference in this case is pretty insubstantial.
Is there scope for a conversation with the Revenue in this type of scenario?
Any other advice on how to deal with this situation would be greatly appreciated.
Tony.