BMV property deal gone wrong – what would you do?Make Text Bigger
Alex has written in to ask other landlords what they would do if faced with a similar scenario of a BMV deal gone wrong. BMV means “Below Market value” by the way, just in case you didn’t know.
“I purchased a 2 bed flat (67 years left on the Lease) which was repossessed. I purchased for £80,000 but knew they sold for £125,000 so thought I was buying a bargain.
The flat was in a lovely condition and tenants could move into it straight away. It was a year ago when I completed the purchase with the benefit of a mortgage from The Mortgage Works at 80% LTV.
I tried to remortgage the flat recently, hoping to raise further finance for a deposit on another property. I paid the survey fee and had a letter saying no finance could be raised as its value was lower than anticipated (valued £90k). I know its worth more than that and asked could I appeal. I was told that to make an appeal I would need to provide three comparables of sales of similar properties in that area in the last 6 months to have a strong case. I looked on Zoopla but the last one sold was 2010 for £107,000 apart from the one I bought!
This is so frustrating!
Has anyone else had these problems or better still can anyone give me a solution?
The product is fixed till December 2013. How can you buy property that you believe is Below Market Value and hope to raise any finance off it if they just decide you can’t have it?
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