Why do they care about the heating?

Pammy

My mortgage offer is being held up over heating. The survey suggested we look at replaceing the heating as a suggestion, its now become a conditin by the lender

Why would they care? It has storage heating at the moment and it seems really pointless in my mind. I don't know what I'm going to do with the heating yet.

What reason would there be?

Thanks

dunstonh

It has an impact on the resale value of the house. It normally wouldnt be an issue unless you are pushing the loan to valuation figures tight to their limits or the system is actually considered dangerous.

Pincher

How can you replace the heating system BEFORE buying the house?
You can replace one device, keep the receipt, and send them a photocopy if they ask. Unless the house burns down, they are not going to care.

The keyboard monkey at the underwriters is just covering his red shiny arXX by acting on ANYTHING mentioned in the survey. Let's see who actually remembers or chases up on this after completion.

If they are demanding that you replace an electric storage heating system with a full-blown gas central heating system, they are insane.

LillythePink

Why did they say to replace the heating - any specific reason ie dangerous, end of useful life etc? How was it graded on the survey

We had items like this on our survey ie immersion needs replacing, doors and windows coming to the end of their life - but our bank didn't bat an eyelid about them.

The only thing that I can suggest is that if you cannot afford it and it's not a major issue to the surveyor, then you could always ask then to write to your bank detailing exactly why he said that.

andyhart44r

Pincher wrote: »

How can you replace the heating system BEFORE buying the house?
You can replace one device, keep the receipt, and send them a photocopy if they ask. Unless the house burns down, they are not going to care.

The keyboard monkey at the underwriters is just covering his red shiny arXX by acting on ANYTHING mentioned in the survey. Let's see who actually remembers or chases up on this after completion.

If they are demanding that you replace an electric storage heating system with a full-blown gas central heating system, they are insane.

Why would they be insane? The surveyor is acting on the best interests of the bank who are providing money to buy the house. If the person is unable to sell on the property due to the heating system then this will affect future saleability of the property and therefore the surveyor will not recommend the property as suitable security.

Granted, surveyors usually give "recommendations" such as replacing windows, doors etc, but will usually hold a chunk of money as a retention until the works have been carried out, or will not recommend the property at all.

betmunch

What lender is this placed with?

Sounds to me like they are looking for a reason not to lend

Pincher

andyhart44r wrote: »

Why would they be insane? The surveyor is acting on the best interests of the bank who are providing money to buy the house. If the person is unable to sell on the property due to the heating system then this will affect future saleability of the property and therefore the surveyor will not recommend the property as suitable security.

Granted, surveyors usually give "recommendations" such as replacing windows, doors etc, but will usually hold a chunk of money as a retention until the works have been carried out, or will not recommend the property at all.

Fine, why not demand cavity wall/sold wall insulation as well? If we go down this route, you might as well build a new house. Half the housing stock probably wouldn't qualify for a mortgage if they carry on like this.

jw2003

Have to agree here

our house needed new heating, windows, bathroom and a kitchen which was all reflected in the survey - as were potential damp problems - and we still got a mortgage which wasn't conditional. The value placed on the property reflected the work that needed to be done and it's present value (at the time) which was inline with our offer

Pincher wrote: »

Fine, why not demand cavity wall/sold wall insulation as well? If we go down this route, you might as well build a new house. Half the housing stock probably wouldn't qualify for a mortgage if they carry on like this.

Dan_1976

Could be a few points, you may need your own survey to help you.

If you have no heating at all the property may be deemed as inhabitable, although more extreme than the likely reason, which I would guess at the LTV and how much you would need to spend on the property. They may want to hold back moneys until you have completed the work.

This may be a get out clause for them or it may be a good underwriting policy.

furndire

Anything that needs doing/changing on a property is a chance to knock down the price.