Poor homebuyers survey

nigel75

After recently receiving back a poor homebuyers survey on a 100 year old house, we have recently been instructed by our bank that we cannot obtain our mortgage unless we obtain specific reports on the state of the roof, dampness in the bathroom on the ground floor, ties in the wall cavities and timber decay. As we are only taking a 75% mortgage and have a fairly hefty deposit, is it normal that the bank should reject our mortgage application? The agreed price for the house is £140,000 and its value is £135,000 and we ar taking a mortgage for £105,000.

Also, apologies in advance for the stupidity of the question, but if repairs need to be done (after potentially having the mortgage application rejected for the second time by the bank), before we can obtain a mortgage, should we as buyers pay some of the bill or should the vendors sort this out. I am assuming the vendors should take care of this.

Help with this would be greatly appreciated and will help me sleep better at night!!!

Pal

The Bank is asking for a more detailed survey because it is not sure of the extent of the works required to the house. If the damage is great, they may not lend at the level you want because it will reduce the value of the house.

I suggest you get the detailed survey work done. If the work required is extensive, then you have a choice:

- Reduce the offer price by the amount that it will cost to do the work;
- Ask the vendor to do the work before you are willing to buy;
- Walk away and find another house. (Threatening this might result in the vendor agreeing to either of the first two options!).

You are about to spend a LOT of money on a house - it is worth spending a bit of money on professional surveys to make sure that you are not buying a money pit.

Doozergirl

Were you expecting to have to do work on this house and does the price you are paying reflect that?

If the reports come back showing the worst and work is required, the bank could potentially withold some or all of the money until the work is completed and guarantees are provided. They will want the house in reasonable condition to ensure they get their money back if you default, regardless of amount. 75% isn't risk free to them though some things might be overlooked that wouldn't be in a higher LTV mortgage. TBH I would be a little concerned at the extent of work required if you're not already expecting to have to do some.

I'd try and get these reports done by professionals that aren't going to charge you, if possible. You want to try and limit the damage to your bank account if this doesn't work out for you - maybe worth seeing if the vendor will pay for some. You might give a copy of the report to your EA so they can try to explain that this is propbably going to come up on any valuation, so it's probably not worth dropping you over these issues.

Good Luck, it would be great to hear how you get on...

nigel75

Thanks for taking the time to respond you 2. Very much appreciated. Its been very useful. After much perserverance I have managed to get a timber and dampness survey arranged for £30 + VAT and a roof survey free of charge. Apparently the problem with the ties within the wall cavities has already been rectified. The work had already been done before my homebuyers survey and the current owners are sending me a certificate to justify this so quite surprised the surveyor picked this up at all.

Now its just a waiting game to see what the new surveys pick up then we'll see whatthe bank has to say about it.

Thanks again.

Doozergirl

Good news on the wall ties and good luck with the rest!