What offer to make on house?

Beckymarshall07

Location mainly but also house has alot of potential. We want something so we can stamp our own identity on it. I dont know if to put in an opening offer today or leave it until monday. EA said yesterday there were viewings on it this weekend but bizzarly she started off the conversation by say ing we could borrow money that gov is releasing for FTB. Shes obviously talking tosh as thats only for new builds so dont know what to think and whether EA is playing us

lynzpower

Ea will definately be playing you becky

I used to be an EA and lying is the norm, especially when their wages wont get paid ( most on commission)

have you spoken to your lender about the potential for them withholding part of the loan- you must do this.

in any case it might be worth chucking your hat in the ring, getting the offer accepted then once your surveyor goes round they will tell you if they are willing to lend on it.if so what they think its worth in a falling market.

This does sound rather unusual ,that 2 properties on the same road have structural problems, do you know why this is ( built on clay, flood risk etc)

Do you have a link to the property or to the sold one to help us understand?

You can stamp your identity on any huse, just pick one that structurally sound then rip out all the interior and start again?? Anyone can make a house a blank canvas, and its much cheaper to do on one that is structurally sound???

Beckymarshall07

Thanks Lynzpower. The house is structurally sound its that there isnt a kitchen to speak off which is why it needs building work doing to it (the kitchen is 3ft and 3ft so would need to extend out like every house in the street has done, house also needs double glazing). Would rather not post the house in case the vendors google and see this posting! Sorry I'm really paranoid today :-) Thanks alot for the EA advice - I suspect EA trying to close out a deal. Could you explain what you mean about speaking to lender witholding part of the loan as not sure what you mean? Sorry new to this game being a FTB....!

poppysarah

Beckymarshall07 wrote: »

stamp our own identity on it.

You can do this anywhere. You don't need a blank canvas or a derelict house to do it. You can stamp your identity on it easily by just moving in. Decorations look different with different furniture.

And wallpaper comes off a lot easier than ripping out a bathroom and kitchen.

Taking out an unsecured loan to do up a property is pretty mad at the moment. Why don't you save up a bit more first?
What if the boiler breaks the day you rip out the kitchen? Have you got another 2k to sort that out?

Incisor

Beckymarshall07 wrote: »

...Could you explain what you mean about speaking to lender witholding part of the loan as not sure what you mean? Sorry new to this game being a FTB....!

That is what is known as a retention. In your case it could bite you hard. When there is a credit crunch, retentions seem to get mentioned. Basically the lender sees you pay 100, which you do knowing it is worth125 after work costing 20. They say it is worth 100 because that is what you will pay, but it needs 20 of work doing so they say it is actually worth 80. If you put in 10, they will authorise a mortgage for 90, but will only pay out 70 initially. They will only pay the remaining 20 when you have done the work. Sometimes it does not work as badly as this if the lender is prepared to cut some slack over the valuation.

<rant>It tends to perpetuate poor housing because people who could afford to do the work are not allowed the proper finance to do it and those who take it on are financially squeezed in trying to sort out some of the more difficult issue on a property and somewhat forced to cut corners. The problem would be reduced if the lenders would accept that the purchase price of the house is the value of the house with the work not done.</rant>