Mortgage lenders min valuation query

ake3

Hello,

I am in the process of puchasing a property for £75k. The mortgage lenders criteria states min valuation of £75k. THe valuation has come back as £75K. An electrical report has come back stating the property needs a complete re-wire quoted £2500. I dont think the vendor will do this so I would like to negotiate the price. My query is that If I offer less (and the vendor accepts the offer) where do I stand with the mortgage lenders criteria of min val £75K? THey have already said its worth the £75K but would they re-value it now that the electrical report states that the property needs this re-wire? If I dropped the offer will they not lend because purchase price would be under £75K?I am totally confused. I cant go looking for another lender as this was the only one who would lend due to my credit history.
Any advice would be gratefully accepted

Gorgeous_George

I was going to buy a property for £46K a couple of years ago. My preferred lender had a minimum valuation of £50K. I asked whether or not they would lend me the money if their valuation was £50K and the answer was no.

You'll have to ask the lender of course. Who knows how their minds work?

Good luck.

GG

kingstreet

ake3 wrote: »

Hello,

I am in the process of puchasing a property for £75k. The mortgage lenders criteria states min valuation of £75k. THe valuation has come back as £75K. An electrical report has come back stating the property needs a complete re-wire quoted £2500. I dont think the vendor will do this so I would like to negotiate the price. My query is that If I offer less (and the vendor accepts the offer) where do I stand with the mortgage lenders criteria of min val £75K? THey have already said its worth the £75K but would they re-value it now that the electrical report states that the property needs this re-wire? If I dropped the offer will they not lend because purchase price would be under £75K?I am totally confused. I cant go looking for another lender as this was the only one who would lend due to my credit history.
Any advice would be gratefully accepted

They won't revalue it.

The minimum valuation required is £75k and the property is worth that. The criteria doesn't mention minimum purchase price does it? Which lender?

Is there a retention? If so, can you put down the extra cash needed to complete? What's the value after essential repairs?

ake3

kingstreet wrote: »

They won't revalue it.

The minimum valuation required is £75k and the property is worth that. The criteria doesn't mention minimum purchase price does it? Which lender?

Is there a retention? If so, can you put down the extra cash needed to complete? What's the value after essential repairs?

NO mention of min purchase only a min lend of £25k. /the lender is Aldermore, it was the only mortgage company that would lend to me due to my circumstances, (3.48%2 yr discounted, fees £999 at the moment so better than some mainstream)

No one has mentioned a retention, The FA said that the reports (damp/timber one aswell) will get sent to the mortgage lender then to the Valuer? I may have heard him wrong so this is why I was wondering if they would alter the valuation now they know theres work to be done. I only have a spare £2500 after the fees, sols, and £15k deposit- (20%) and I really wanted this to change the plastic avacado bathroom suite!! Seriously tho I would do he essential Electrical work as priority I just need to get the house first.

What does the retention mean?

Thrugelmir

ake3 wrote: »

What does the retention mean?

The lender will hold back a sum of money from the mortgage advance, until such time as the necessary works are completed. The funds will then be released.

ake3

Thrugelmir wrote: »

The lender will hold back a sum of money from the mortgage advance, until such time as the necessary works are completed. The funds will then be released.

So the mortgage would go thro, I would be owner, do the work and then the retained money gets paid to vendor? I wouldnt mind that, I'm not going to pay out before the house is mine for obvious reasons and I know the vendor wont pay for the work to be done because he wouldnt supply the reports so I had to pay for them to be done, Plus I've already knocked him down £10k..

Thrugelmir

Money gets paid to you. At completion of the purchase you would need to fund the balance. Then you need to fund the work.

When buying an older property always advisable to have a contingency fund.

ake3

Thrugelmir wrote: »

Money gets paid to you. At completion of the purchase you would need to fund the balance. Then you need to fund the work.

When buying an older property always advisable to have a contingency fund.

Not so good then. only got £2500. If they do put a retention and retain more than this Im stuffed!

Thanks for the advice