Hi Simon
Oh dear ... I think I'm understanding the situation ...... please correct me if I am wrong.
The vendor wants to reduce the stated purchase price, but wants you to provide the difference (or more) in cash. If so .... It is illegal.
When I wrote " mortgage finance is based on the valuation of the property "
I should have added whichever is the lower amount of the valuation or the purchase price. My apologies - I did not forsee your next question.
Whatever the Compromis de vente states as the purchase price is what the bank will use to establish their 80% mortgage. The valuation of the property follows next.
If the property is down-valued they will only advance 80% of the valuation. If the property is valued higher than the purchase price (that doesn't usually happen) the bank will only lend 80% of the purchase price.
Carole Bayliss
mortgagefrance
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