Possible Reasons For Mortgage Retentions

lisa32_2

Hi all,

Buying a property at the moment that needs alot of work doing to it and worried about getting a mortgage retention.

Does anybody know the reasons why they put a retention on a mortgage?

The house has an unfinished extension and has had some supporting walls knocked out. The RSJ's are visible so we know they have been fitted but the wiring is hanging out all over the place! All the unfinished bits are inside the house.

It also doesnt have a boiler - but fitted up for central heating with pipes and radiators etc

We were hoping that because its £40,000 less than the prices for the houses on that street that we wouldnt get a retention!

Will the fact its alot less than the other houses in the street save us from the retention?

Thanks in advance for any help

Lisa

Thrugelmir

A mortgage retention is made when the valuer seems essential repair works are required to be made. The installation of a boiler and the electrics make good examples.

The rentention has nothing to do with neighbouring property values. It is deducted from the mortgage advance to ensure that you carry out the work as scheduled. Once completed and the work inspected, the retention monies are released.

wymondham

Many years ago we had a retension based on the fact the mortgage company wanted proof that an RSJ was in place below a chimney stack that had been taken out.... all got a bit messy and we walked away in the end as we felt that the mortgage company started to makeup excuses not to lend..

It did have an RSJ as we could see it!