Down valuation following mortgage
Currently in the process of buying a leasehold flat and the mortgage valuation from a major high street lender came back around £20k below the agreed purchase price.
I really like the property and was keen to proceed, but now I’m worried about whether I’d be overpaying and potentially causing issues for myself later when it comes to resale or remortgaging.
A few details: • First-time buyer • Relatively new apartment conversion (converted within the last few years) • Previous sale on the property reportedly fell through • Estate agent suggested trying another lender for a different valuation • Mortgage broker advised another mainstream lender may well value it similarly • I could potentially cover a small part of the gap myself, but not comfortably the full amount
Trying to work out: 1. How seriously should a down valuation from a major lender be taken? 2. Is this usually a sign the agreed price is simply too high? 3. Have people had success renegotiating after this? 4. For anyone who proceeded despite a down valuation — did it cause issues later? 5. Are flats/leasehold properties particularly prone to this at the moment?
Would appreciate honest opinions or experiences from anyone who has been through similar recently.