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If its a physical survey being done by a chartered surveyor they will have what is known as a 5pc bracket. That means they can sign it off with a 5pc margin for error on their part, without the risk of being sued for negligence. 30k over at 350 does sound a little punchy to me but stuff in East London goes under offer for over asking quite often. One I saw the other day was a house at 950 and it sold for 1025000.
princeperch-
In Scotland things can go for outrageous amounts over valuation (see my post upthread).
I believe I've seen, but can't find an example of, a surveyor valuation with a caveat that the market conditions are disrupted and valuations need to be regularly reviewed. Whether this means they'd entertain a re-valuation at very short notice just due to market pressure I have no idea, and I'd be fearful not.
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That's good to know. Thanks v much
Cupcakes
Jaaamie
We had offer of 380k accepted on a house listed for 350k (mad market, not in London) and are about to have the lender valuation done for the mortgage. We have 80k deposit (21% ltv). 300k loan.
If the lender comes back and says it's worth significantly under how fucked are we? We could probably scrape together another 10k worth of deposit and doubt seller would budge much, if at all, on agreed price.
Does lender primarily care about their stake being recoverable (300k)? Would I only need to worry if there was risk of them undervaluing to below 300k (v low risk)?