advise please

trumpchig

Hi All
I found a house got a mortgage promise and offer on house accepted. The home buyers survey was done by Countrywide, this found a few problems. I then had to get a structural engineers report which I have and the work needed amounts to £4000 with the SE overseeing the work. The mortgage advisor now says the work has to be done before the surveyor will value the property, and even then I might not get buildings insurance because its structural. The sellers can not afford to do this work. The EA has said I can exchange contracts pay a 5% deposit (this will be legally binding) and renegotiate the price. I would then pay for the work to be done and the surveyor will value the property.
The structural work is lateral restraints, 2 window lintels, 1 door lintel and roof support due to concrete tiles. SE has stated that the tiles do not appear to be a problem but it may not pass a building inspection.
Any advise or comments please (I am a first time buyer) :think:


Hi - and thanks for the replies -

Sorry for any confusion but I should have mentioned that the surveyor has stated in the report that he WILL value the property at the first agreed price, with the work completed. Also, I would re-negotiate the price PRIOR to any contract exchanged. The 5% and contract exchange was suggested so that it would protect me from getting the work done then the seller pulling out of the deal.
I am speaking to my solicitor tomorrow with regards to this. The other concern was the mortgage advisers claim (Halifax) that building insurance would be hard to get, or would end up paying over the odds for it. Yet others that have had structural work - even underpinning done can get decent insurance. I might also add that I'm getting the property at a very good price (7k less than asking price so far) that is why I was going as far as I can with it.

Cheers.

Annisele

I'd walk away...

Any suggestion (from a professional) that I might not get buildings insurance on a house would leave me worried.

The suggestion that I exchange contracts on a house that (apparently) can't be valued would have me running a mile. What do you do if the valuation later comes in lower than you expect, and the lender won't lend you enough money to complete the purchase?

It is entirely possible that the problems can be rectified. However, unless you are absolutely in love with this particular house and no other house will do, it's going to be far more hassle to buy this one than another one.

Even if you are in love with this house, I'd be tempted to walk away for now. Anybody else trying to buy with a mortgage will likely come up against the same problems, and if the seller really won't stump up £4k to do the work then other prospective buyers will probably walk. After that's happened a few times, the vendor might drop the price.

G_M

MAD MAD MAD MAD MAD.

Are you really expecting advice of any other type than Annisele's above?

bitsandpieces

trumpchig wrote: »

The EA has said I can exchange contracts pay a 5% deposit (this will be legally binding) and renegotiate the price.

Is the EA asking you to exchange contracts first and then renegotiate the price afterwards? :eek: This is an awful idea (for you - it may work out well for the EA and seller). Exchanging contracts is a legally binding commitment to complete at a certain price and by a certain date. If you're buying the place, you need to negotiate an appropriate price *before* exchanging; you should also make you have a mortgage offer in place.

Have you instructed a solicitor yet? Worth discussing this with them - they should be able to talk you through the risks of the various options. Seriously, though, don't exchange in the hope of renegotiating on price afterwards!

poppysarah

Unless it's a completely to die for house that's unique I'd just leave that one well alone.

Emmzi

if the sellers cannot afford to do this essential work, what minor works hae the not managed to keep up with over the years?

sign of a money pit. run away and leave it to a professional developer.

cj25_2

trumpchig wrote: »

The EA has said I can exchange contracts pay a 5% deposit (this will be legally binding) and renegotiate the price. I would then pay for the work to be done and the surveyor will value the property.

Do they think you're insane? Your survey's just coming back telling you that it's got serious structural problems, it's not mortageable and there's a good chance you won't be able to insure it. The idea of then handing over a 5% deposit and legally agreeing to buy it.. then somehow trying to renegotitae the price -after- signing a legally binding agreement to buy it for the first price -and- agreeing to pay yourself for all the work that needs to be done.

Run for the hills, seriously.

motherofstudents

The vendors have only dropped the asking price by 7k ? I would be very wary of this one. I don't really see why you would be unable to get buildings insurance, if that is the case you need to forget it.:( There are plenty more houses out there.