is Bridging loan necessary??

moatmeister

Trying to buy a house with known structural issues. Got mortgage offer with but effectively with 100% retention. Underpinning required in one area, have got quotes and have budgeted for cost of repairs. Timescale to do work quoted as about 1 month.

We would be prepared to do the work prior to exchange and completion, vendor will not agree to this saying too many risks involved - what if builders dont turn up, what if I get run over by a bus, what if work makes the problem worse etc etc. Estate Agent says we need to get bridging loan. That is certainly one solution. But are there any others??

This has only happened late this afternoon so not had chance to speak with my solicitor fully yet, however she did suggest when it was first raised by the EA a couple of days ago that it could all be sorted out and a bridging loan would not be required.

moatmeister

Any one any ideas?

moatmeister

Anyone????????

opinions4u

moatmeister wrote: »

Trying to buy a house with known structural issues.

Asking for trouble.

Got mortgage offer with but effectively with 100% retention. Underpinning required in one area, have got quotes and have budgeted for cost of repairs. Timescale to do work quoted as about 1 month.

If underpinning is required, why aren''t the vendor's insurers paying for it?

We would be prepared to do the work prior to exchange and completion, vendor will not agree to this saying too many risks involved - what if builders dont turn up, what if I get run over by a bus, what if work makes the problem worse etc etc

Tell the vendor to fix it!

Estate Agent says we need to get bridging loan. That is certainly one solution. But are there any others??

How are you going to obtain such a large bridging loan? I'd guess you won't be able to get one.

Don't touch this property with a bargepole until the vendor has corrected the faults.

CLAPTON

It's the vendors insurance that should be paying for this... that's what building insurcance is for.

also check that even after its done you will be able to insure the house.. usually you can continue with the existing insurer .

Let_Us_See

Normally, the vendor would complete work and claim on building insurance (do they have building insurance?). Without completing the work the property can only be sold to a cash buyer and they would expect a lower price to reflect the condition of the property.

Bridging loan very expensive and may eventually work out much more expensive than the required underpinning!