Mortgage Retention

Save_It_2

I wonder whether anyone can give me a bit of advise.

Looking at buying a house for 105,000, I'm putting a deposit of 70,000 down on the property. I had a valuation done on the property that stated that additional reports where needed as there where problems with damp and issues with a perling in the roof. The additional reports stated that the cost of rectifying these issue is 5k and the surveyor had stated in his report that these are essential repairs.

I'm just waiting on the mortgage company coming back to me now with an answer as to whether they will borrow on the property and if there will be any retention amount.

Does anyone know the likelihood of an retention value being placed?

Doozergirl

I should the likelihood of a retention is low. You will have such significant equity in the property that they won't be too concerned.

What they are more likely to do is put a condition on the mortgage that the work is carried out within 6 months. In reality, they never check that it has.

Save_It_2

Has anyone ever had a retention placed on their mortgage? How does it work?

Darth_Marty

They wont suggest a retention in your case as you have pretty much paid the whole thing off! ha ha

Its dependant on the condition of the house, i know of a full retention being placed on a property with no internal bathroom or kitchen, it went cheap enough to entice a local builder in who paid cash but will get his mortgage upon completion of works.

Thats how it works, they say fix this, fix that and we will give you the rest of the cash. You fix this and fix that and they do.

Doozergirl

We bought a derelict property and they made a full retention as well. We had a mortgage with a zero balance for a year! Once we'd pretty much finished they released the funds - not before I begged the surveyor to make them release the money to pay for our wedding the following week - that was tight...

Save_It_2

Just thought i'd give everyone a update, mortgage company came back today stating that they will lend the money in full ( C & G).

So we have instructed our solicitor to start proceedings, looking for a speeding three week completion as the property is empty.