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    • LadyGMadameToThee
    • By LadyGMadameToThee 17th Jul 17, 3:44 PM
    • 52Posts
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    LadyGMadameToThee
    Lender won't release mortgage until work carried out!
    • #1
    • 17th Jul 17, 3:44 PM
    Lender won't release mortgage until work carried out! 17th Jul 17 at 3:44 PM
    Help! Very stressed FTB. Post Officmmortgage company have said today that they won't release ANY of the mortgage until 2k worth of work is carried out. What do we do? I thought they would place a retainer on it and we could renegotiate the price! Unfortunately, they won't lend at all. The issues aren't even major or structural, so we are shocked by this. Is it worth trying another lender?
    Lady G


    Life is too short to be serious all of the time. So, if you can't laugh at yourself, call me - and I'll laugh at you!
Page 1
    • ReadingTim
    • By ReadingTim 17th Jul 17, 4:20 PM
    • 2,046 Posts
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    ReadingTim
    • #2
    • 17th Jul 17, 4:20 PM
    • #2
    • 17th Jul 17, 4:20 PM
    Tell the vendor that they need to carry out the work otherwise you can't buy the place, and neither can anyone else who needs a mortgage: it is their problem more than yours.
    • ProDave
    • By ProDave 17th Jul 17, 4:55 PM
    • 314 Posts
    • 388 Thanks
    ProDave
    • #3
    • 17th Jul 17, 4:55 PM
    • #3
    • 17th Jul 17, 4:55 PM
    What is this essential work? some things worry lenders a lot.

    A previous house purchase the lender wanted to make a retention until I had done some work (rewire and damp issues) I pointed out I had kept enough money in reserve to do the repairs, but if they retained part of their loan, I would no longer have the money to do the repairs so I would not be able to proceed with the purchase. They had a re think and agreed there was no need for a retention.
    • hazyjo
    • By hazyjo 17th Jul 17, 5:01 PM
    • 9,624 Posts
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    hazyjo
    • #4
    • 17th Jul 17, 5:01 PM
    • #4
    • 17th Jul 17, 5:01 PM
    Not sure I'd want the current vendors doing work. Surely that wouldn't be in my best interests? I'd much rather choose reputable workmen myself. Seems like a strange request. Can't you discuss a retention with them instead citing that exact reason, and try to negotiate a price reduction (if poss)?


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    • kingstreet
    • By kingstreet 17th Jul 17, 5:23 PM
    • 32,075 Posts
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    kingstreet
    • #5
    • 17th Jul 17, 5:23 PM
    • #5
    • 17th Jul 17, 5:23 PM
    Presumably this is a continuation of;-

    http://forums.moneysavingexpert.com/showthread.php?t=5679685
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • martinsurrey
    • By martinsurrey 17th Jul 17, 5:28 PM
    • 3,130 Posts
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    martinsurrey
    • #6
    • 17th Jul 17, 5:28 PM
    • #6
    • 17th Jul 17, 5:28 PM
    Tell the vendor that they need to carry out the work otherwise you can't buy the place, and neither can anyone else who needs a mortgage: it is their problem more than yours.
    Originally posted by ReadingTim
    That is a very big leap!

    Retention's are an art form and making such a bold claim is just wrong.

    The post office might not want to lend on this house at 90% without the work being done but HSBC might be fine with it at 60%.

    For such a small amount I think its more the OP's problem than the vendors tbh, £2200 is less than 10 days mats+labour, and anything that costs that little isn't too major.
    • LadyGMadameToThee
    • By LadyGMadameToThee 17th Jul 17, 5:34 PM
    • 52 Posts
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    LadyGMadameToThee
    • #7
    • 17th Jul 17, 5:34 PM
    • #7
    • 17th Jul 17, 5:34 PM
    We are FTB and the house we're trying to purchase is already vacant & has been for some time. The work seems trivial for them to be demanding it be carried out before releasing ANY of the mortgage BUT we are asking for 95% mortgage. I think the seller has already had one sale fall through - and our mortgage broker seems to think that's these problems will not go away and other lenders will pick up on the,
    Lady G


    Life is too short to be serious all of the time. So, if you can't laugh at yourself, call me - and I'll laugh at you!
    • eddddy
    • By eddddy 17th Jul 17, 5:58 PM
    • 5,267 Posts
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    eddddy
    • #8
    • 17th Jul 17, 5:58 PM
    • #8
    • 17th Jul 17, 5:58 PM
    Based on your previous thread...

    Originally posted by kingstreet
    ... are you sure they are not saying it's 100% retention until you get a Damp and Timber report?

    Then, once they have the Damp and Timber report, they will review. And perhaps the retention will then be zero or £1k or £2k or whatever.
    • LadyGMadameToThee
    • By LadyGMadameToThee 17th Jul 17, 7:31 PM
    • 52 Posts
    • 47 Thanks
    LadyGMadameToThee
    • #9
    • 17th Jul 17, 7:31 PM
    • #9
    • 17th Jul 17, 7:31 PM
    No, this is AFTER the damp & timber report (which we had carried out by an independent surveyor). The works are pretty minor (high humidity in attic so a couple of air bricks needed & concrete under bay window needs lowering b cause it's causing high moisture readings) - if we got other quotes I'm sure we could get it cheaper (my husband could do most of it himself) - but we're not going to do it on a house we don't own
    Lady G


    Life is too short to be serious all of the time. So, if you can't laugh at yourself, call me - and I'll laugh at you!
    • browneyone
    • By browneyone 17th Jul 17, 7:48 PM
    • 56 Posts
    • 45 Thanks
    browneyone
    Our lender asked us to write a statement that basically made us 'promise' to have the damp work done within 3 months (quote was only £395) any way.
    • LadyGMadameToThee
    • By LadyGMadameToThee 17th Jul 17, 8:00 PM
    • 52 Posts
    • 47 Thanks
    LadyGMadameToThee
    We would happily do the work within 3 months of actually owning the house but at the moment we have no legal protection because it isn't our house
    Lady G


    Life is too short to be serious all of the time. So, if you can't laugh at yourself, call me - and I'll laugh at you!
    • ReadingTim
    • By ReadingTim 18th Jul 17, 9:49 AM
    • 2,046 Posts
    • 2,957 Thanks
    ReadingTim
    That is a very big leap!

    Retention's are an art form and making such a bold claim is just wrong.

    The post office might not want to lend on this house at 90% without the work being done but HSBC might be fine with it at 60%.

    For such a small amount I think its more the OP's problem than the vendors tbh, £2200 is less than 10 days mats+labour, and anything that costs that little isn't too major.
    Originally posted by martinsurrey
    It might indeed be a very big leap - the question is whether the vendor knows this or not. In the first instance, I'd try and scare them by making the statement I made. What's to lose?

    Furthermore, as a money saving site, it seems a little remiss not to suggest ways that the buyer could save money, dontchathink?!?
    Last edited by ReadingTim; 18-07-2017 at 10:31 AM.
    • note3
    • By note3 18th Jul 17, 10:15 AM
    • 288 Posts
    • 411 Thanks
    note3
    I would begin my post by saying I am in no way financially or legally qualified with regards mortgages.

    So my suggestion as Joe blogs off the street would be is the mortgage now fully offered providing the £2k work is done? If so could you agree with vendor that they let you do the work after exchange then mortgage will be released for completion? If that an option
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