Valuation Difference & Clawback

Hi

I have recently accepted a 2 bed house from Kildare Co Co under the affordable initiative scheme. Absolutely delighted with the house & the location.

The problem that I have is that the Market Value that the council have put on the property is 375k compared to the 320K on valuation report from my lender. This means that the clawback will be 29% rather than 16%... given the current market I'm apprehensive in continuing with the purchase with such a large difference in valuations & Clawback...

Has anyone else out experiences such problems and have you been able to resolve them with the council?? My solicitor has been trying to sort this out for over 2 months but doesn't seem to be able to get an answer...

thanks for your help

Oh, I remember what that felt like...

http://www.askaboutmoney.com/showthread.php?t=58023&highlight=valuation

http://www.askaboutmoney.com/showthread.php?t=60445&highlight=valuation

You're in the middle of a very long, frustrating and crunch-decision-making process...I really don't envy you starting that again

We managed to get them to drop valuation and cost price but it was a serious battle....
In the end we went for it cause we'd little choice-don't regret it, but come back to me in twelve odd years if I decide to sell and I do the maths again!!

It seems to be something the councils are doing across the board - almost everyone I know whos been offered an AH and had their lender-approved valuation done and its been exceptionally lower than the councils 'independent valuer' - would love to meet him!!!!!!!!!

Shafted, I think, is the word you're looking for!!

Phibbleberry said:

Shafted, I think, is the word you're looking for!!

Click to expand...

Classic

This is a serious issue for you bud.

Basically, the advantage you've gained by going down the affordable housing route has been eroded by the lower valuation in reality.

From your post, it sounds as if you're paying around the 270k figure, which in monetary terms is a 50k saving, when you're being told it's a 100k saving.

If indeed you are 100% sure you'll not be selling in 20 years (and living there the whole time) the valuation issues wont effect you, but I urge you to do as much as you can to get the house valued closer to the real market value, because it'll bite you in the bundy in the long term if you decide to sell...

Good luck with it...