mortgage retention advice

missfly0

i have applied for a mortgage with a bank, after jumping through hurdle after hurdle for them they have now said that they will give me a mortgage however it has a full retention on as the property has building work required on an extention, this does not affect the main house and i believe it is unfair of them to put this retention on why cant they just put the retention on the building work needed to the extention instead of the whole property, i have given them quotes for this work and proof of funding.. believe they are doing this has i have to pay over £1500 for dees to them for getting this far:(

kingstreet

The surveyor has indicated the required works should be completed before the mortgage be allowed to proceed. What exactly did the surveyor say in his report?

Is there a difference between the valuations before and after the remedial works?

opinions4u

You don't say what the essential work is, but a poor extension can completely undermine a lender's security.

If you have a relatively small deposit and/or the extension is more than just a tiny porch then there is a lot of sense to not releasing a penny for the purchase until the whole property is in a fit condition.

What is the purchase price? What amount are you borrowing? What is the current valuation? What is the projected valuation once the work is complete?

If I was the buyer, such a decision would make me think twice about going ahead with the purchase.

believe they are doing this has i have to pay over £1500 for dees to them for getting this far

They are doing this to protect their shareholders, their wholesale funders and their savers. They may also be protecting you from buying a defective property.

why cant they just put the retention on the building work needed to the extention

It's all one property. It's all one mortgage. If there's a significant structural defect their actions are normal and reasonable. If it's just the wall ties that need replacing on the extension then they're being harsh.

GMS

A total retention would usually indicate major works needed such as structural repairs. It could be that the extension has insufficient foundations or some form of subsidence/heave which means movement is likely. This could cause a collapse which could take the main house with it.

The amount of fees you have paid so far has no bearing on the surveyors decision. The surveyor is there to make sure the lender has suitable security ad works on their behalf, often at your expense.

Until the lender is happy with the security they will not release funds

Wh05apk

missfly0 wrote: »

believe they are doing this has i have to pay over £1500 for dees to them for getting this far:(

What the hell has cost £1500 to get to this stage? Have you paid the arrangement fee upfront? if so you "should" get it refunded.