Right to Buy mortgage valuation

[Monikaite]

I would like to buy my flat through Right-to-Buy but the bank declined the offer base on the mortgage valuation: " due to the low amount of owner occupation properties within the block, this will affect future saleability and is not considered suitable mortgage security". In addition, it was stated that the property would not not sell at the market value.

First of all, I am not borrowing the market value, I am borrowing less than 50% which means that in the worst case scenario the bank would not need to sell at the market price but just to recover the amount owed. Also, I know that about 40% of all occupancy are private residents however, when I go to Land Registry, I can see that there is only one record for a flat that was sold two years ago. This is not right because some of my neighbours I know in person and I know that they are the owners. I want to prove the facts as the mortgage valuation was incorrect and it stops me from buying the property. I have contacted Land Registry and I am awaiting the response why not all the data is available. Also, I am planning to contact the council and ask them whether they could provide me with the occupancy ratio. The valuation was incorrect, and I was wondering, whether it would possible to appeal against the decision?

It is really frustrating because for me this is the only way to step on the property ladder and the bank agreed to lend me in accordance with Right to Buy scheme and the application was accepted based on my credit rating and affordability. I do not understand how the scheme itself could have been the reason for rejection. Do you have any advice? Many thanks.

[Sarnie]

Monikaite said:

Do you have any advice?

Yes.

i) Don't waste your time trying to appeal the valuation, the decision has been made, they won't change it.

ii) Try another lender.

[blueg33]

Did you know that properties always sell at market value, because the market value definition means price agreed between a willing buyer and a willing seller.