House buying LTV prob

househell

Wondering if anyone can help. Im in the process of buying a house with an 85% LTV mortgage from the halifax. Survey showed a load of probs and the vendor has agreed to take 8k less for the house in lieu of the work that need doing.

My question is can we borrow the same amount from Halifax thus giving us 8k to do the repairs needed after completion? Our solicitor seems to think when Halifax hears that the price has been reduced by 8k that they will not give us the full amount of mortgage as they will take the revised price as the value of the property and only then lend us 85% of that. If this happens we will then only have about 1k free to do about 12ks worth of work, so we would not be able to proceed. I personally dont get this as the valuation which the 85% loan is based on would not have changed just because price has dropped 8k.

Im going to raise it with lender tomorrow, but just wondering if anyone has any insight into situations like this?

Thanks!

Thrugelmir

The mortgage will based on the purchase price or valuation of the property which ever is lower. In your case your mortgage offer will 85% of this figure.

Depending upon the work required. Your lender may even make a retention against the works from the mortgage.

As the cost of the works will not necessarily add a similar value to the property.

TrickyDicky

The house is only worth what someone is willing to pay for it. They have no way of knowing you have carried out the work, or what someone else would be willing to pay if the work was completed.