Commercial Property valuation
Discussion
Hi all i already have a deal agreed on a purchase of a commercial property but the morgage company has had a independent valuation carried out and its falling short of the agreed price i of course dont want to pay more than its worth but really want the deal 
Any similar situation's you have been in ? other than re do the deal i dont know what to do ,problem is the Loan to value is only 75% so will leave me short

Any similar situation's you have been in ? other than re do the deal i dont know what to do ,problem is the Loan to value is only 75% so will leave me short
You could ask the seller to meet you halfway between what you've agreed and the latest valuation. There is no guarantee that they will move, but if you don't ask you don't get...
You could get a personal loan to cover any extra you need. TSB are offering them for 2.8% and Santander 3.3%. Both will lend up to £25k (TSB £50k) over five years.
Or increase the mortgage on your own house if you have one.
You could get a personal loan to cover any extra you need. TSB are offering them for 2.8% and Santander 3.3%. Both will lend up to £25k (TSB £50k) over five years.
Or increase the mortgage on your own house if you have one.
Busy boy said:
Hi all i already have a deal agreed on a purchase of a commercial property but the morgage company has had a independent valuation carried out and its falling short of the agreed price i of course dont want to pay more than its worth but really want the deal 
Any similar situation's you have been in ? other than re do the deal i dont know what to do ,problem is the Loan to value is only 75% so will leave me short
It's happening a lot recently. We've sold a few properties of late where the buyers have had to drop in much more deposit than they thought. Some of the nonsense that surveyors have been coming out with to justify lowball vals is quite astonishing, too. In the past 30 years I have never known anything quite like it.
Any similar situation's you have been in ? other than re do the deal i dont know what to do ,problem is the Loan to value is only 75% so will leave me short
You can either borrow some unsecured money and refinance later, or try another lender in the hope of getting a surveyor with a different opinion.
Had exactly this , the values seem to be extremely pessimistic and have been for some time ,
When we questioned why they thought it was overvalued they showed us some empty shells 45 miles north of us and tied to compare like for like.
For us the deal fell through , which worked our brilliantly as we got a £300k building for £152k 1 year later . Still not sure how we got an industrial free hold building at half price , but we did
When we questioned why they thought it was overvalued they showed us some empty shells 45 miles north of us and tied to compare like for like.
For us the deal fell through , which worked our brilliantly as we got a £300k building for £152k 1 year later . Still not sure how we got an industrial free hold building at half price , but we did
matjk said:
Had exactly this , the values seem to be extremely pessimistic and have been for some time ,
When we questioned why they thought it was overvalued they showed us some empty shells 45 miles north of us and tied to compare like for like.
For us the deal fell through , which worked our brilliantly as we got a £300k building for £152k 1 year later . Still not sure how we got an industrial free hold building at half price , but we did
That might be due to the Valuer correctly identifying a falling market (though it is a hell of fall). When we questioned why they thought it was overvalued they showed us some empty shells 45 miles north of us and tied to compare like for like.
For us the deal fell through , which worked our brilliantly as we got a £300k building for £152k 1 year later . Still not sure how we got an industrial free hold building at half price , but we did
As to the OP - how close to your purchase price were they? There is usually a tolerance of around 10%, but if more, then it should be addressed it the valuation. Does this specific property address a need specific to you i.e. is it "Worth" more than the wider market would pay?
I'm not a professional valuer (yet), but worked on a valuation recently on a central London commercial property. The asking price was nearly £90 million. (late 2020). The building was sold around £70 million (early 2021) and it has been sold to someone else again over £90 million. (2022).
Depending on the tenants and the comps, it might change a lot.
Depending on the tenants and the comps, it might change a lot.
It’s difficult, as someone who sold a commercial property that was not suited ( well easily) for anything other than offices, the market is surprisingly small, it’s ironic as they are a nightmare to find and a nightmare to sell.
For an owner maybe useful to occupy.
I say this as unless the unit has wide appeal, the seller may not be in as great a position as it first appears
If the unit is suitable for conversion to residential then and there’s a market, that’s a different matter
For an owner maybe useful to occupy.
I say this as unless the unit has wide appeal, the seller may not be in as great a position as it first appears
If the unit is suitable for conversion to residential then and there’s a market, that’s a different matter
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