Mortgage lender Truestone Private Finance has observed a developing trend of ‘down valuing' amongst certain surveyors.
Ian Handley, director of private finance at Truestone, claims that three of the last five mortgages that he has dealt with have suffered from ‘down valuing’.
In each case, the surveyor down-valued the property from both the asking price and the offer price. If the valuation price falls significantly short of the asking price, then mortgage lenders will usually refuse to lend, as they would be overpaying.
Handley thinks this may be deliberate, and says: “I am concerned that a considerable number of properties are being given the same treatment; it is as if a direct steer has been given to the surveyors telling them to down value.”
Handley also states that some valuations in Central London had seen as much as a 10% reduction in the value of a property.
Warning of the knock-on effects this might have for the wider housing market, he says: “It will not take long until a ripple effect is felt in Greater London and throughout the country. This could cause huge frustration to all parties concerned”
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