Confused FTB

wildie_2

Hi I wonder if somebody can help me???
I have put in a low offer on an old farmers cottage that requires some work. it has a fully fitted bathroom, solid fuel central heating and a small kitchen with a sink and small 2 ring cooker, it needs new windows and i would like to install oil central heating and it may need rewiring. When I phoned the EA they seem to think i wont be able to get a mortgage, I have a 15% deposit and have had a mortgage agreed in principle by Nationwide for more than the asking price of the property. I have seen properties in far worse conditions than this one but the EA is so hesitant. He has said he will put my offer to the vendor even tho its 20k less than asking price! Would Nationwide put a retention on the property??? If they do what does it mean???

Trying_to_be_good

I didn't know what a retention was, but found this useful website (might save it as a bookmark as it's really helpful!): http://www.cml.org.uk/cml/consumers/consglossary

"Retention
When the lender holds back some of the mortgage money until certain repairs have been done, the amount held back is known as a 'retention'."

Robert_Sterling_3

You will need to pay a deposit. There will also be a significant retention. The Estate Agent thinks you will be unable to buy the property. I think he may be correct.

wildie_2

Robert_Sterling wrote: »

You will need to pay a deposit. There will also be a significant retention. The Estate Agent thinks you will be unable to buy the property. I think he may be correct.

Many thanks for the reply but can you elaborate on why you think the eastate agent may be right???

benjo

Maybe it is 'non standard construction' - I saw a lovely cottage advertised at a really cheap price, on further investigation the EA told me it was single skin brick with a full asbestos:eek: lining and so probably unmortgagable.