structural engineers report

sammy66

The lender has declined the offer they say because the valuer has not committed to say no further movement will happen on the property. I have now spoke to both valuer and SE, valuer says he can't understand why they wont lend, the SE says he will speak to lender and answer any queries they have as property is sound, even if the drain was tested and needed work, we would get it done and SE would sanction it all. Mortgage lender does not seem as if they want this..... I have been told I can appeal. The report claims no further movement, any ideas what I can do, I have spent £800 up to now for nothing .

Also is a distressed sale the same as a buying of a property at an undervalue, as i am now considering transferring equity to partner so he can get mtg in his sole name. Equity £40k when mtged for amount wanted. thanks

holly_hobby

Hi ...

It is the SE who gives his opinion as to the degree and whether any movement is on going - that is why the valuer stated a SE report was required (as they are not qualified to give an evaluation of the same).

It appears to me that the lender has got a bit muddled, on whose opinion trumps whose .. which in respect of structual issues is that of a SE over a basic surveyor.

Let the SE speak to the UW/lender - I would imagine after they had a conversation the matter will be resolved.

Although the lender does have the right of leave not to accept a property as security, regardless. (which is rare but can happen).

If they lender refuses despite the SE report and comments to agree an advance - then you could try another lender, using your SE report to support the new valuation that will be reqd. (so you may not have "lost" the whole of your current outlay)

Anyway, let see what happens first .. wait for the lenders final word, and then take it from there.

Hope this helps

Holly

sammy66

hi holly, thanks for the reply, this is driving me mad lol
when i spoke with the underwriter he basically said that the valuer did not agree to say that the movement is not likely to progress, and its the valuer who has the last word, which makes me wonder why have the SE report done in the first place. but when i spoke to valuer he said he couldnt understand why declined, to say im confused is an understatement. its like me going to docs and being told i have tonsillitis but my friend saying i have a spot on my tongue, who would i believe! i asked the uw if he would speak to SE he said he would try on monday as couldnt speak yesterday cos the mortgage people were moving offices! my mortgage broker has been away and is now back and ive filled him in, he is blazing and said he will call the uw on monday too. maybe if he and or the SE spoke with the surveyor to tell him the mortgage lender has said its down to him, he may ring the lender and clarify, im so confused....its so annoying as the surveyir told me in the begining he was only reco a SE report to cover his back and then promised me if report was ok he would recomend the mortgage offer
i am struggling to go to another lender as i have a £6k default reg 2008.

holly_hobby

Get your broker involved in sorting this out. A surveyor who spots any evidence of possibly serious works reqd, will request a specialist report for the said area i.e could be electrics, timber, structural movement .. you get the idea !

Then depending upon the results of the specialist report, the valuer will either agree with the stated property value, downvalue, or put a retention .. etc .. etc...

It sounds bizarre to say the least that the valuer requests a SE report, seeking the guidance of the enginners evaluation and comments, as to whether demonstrated movement is historical or ongoing - but then when the report comes back to confirm the movement is historical, dismiss their report in effect stating "well I don't believe his comments". The SE him(her) self will be blazing about that as its basically over ruling them in their own specialist & qualified area.

I have to say in my yrs of reviewing mge valuations, I;ve seen plenty of SE requests & reports - but never seen a surveyor over rule a SE's report & comments once they come back ... !!

Your broker is the best to argue this over, as they too will/should have lots of experience of SE reports being requested by valuers & the resulting procedures...

Good luck..

Holly

sammy66

thanks holly, i will keep you posted.

kingstreet

The lender will only accept the surveyor's opinion, as the lender's contract is with the surveyor. If anything goes wrong, it's the surveyor getting sued for negligence.

It's possible the structural engineer has left himself a little "wriggle room" in the report not ruling out completely the chance of future movement. If the surveyor feels that is the case, he in turn will not give that guarantee to the lender.

It's quite possible the surveyor is telling you one thing and the lender something completely different. The broker should be able to nail it down nicely and once everyone knows what the other is actually saying, you'll know where to concentrate your efforts.

I'm surprised the lender is even willing to discuss it with the structural engineer.

sammy66

thanks kingstreet, when i spoke to the surveyor he said he couldnt understand why it was declined altho he was unsure of the lenders criteria as he rarely did valuations for them, he told me i could always go to another lender, bm solutions who he does a lot of surveys for, so this tells me he thinks the property is fit for mortgage purposes. does it sound as if i could be chasing a dead horse

kingstreet

Dunno, mate.

See how the next few days pan out before you decide one way or the other.

sammy66

thanks, just hoping it may just be a matter that the surveyor will tell them property not got ongoing movement, the area is well known for historic movement, the surveyor himself lives near there and is well known for being the 'kiss of death'. the SE and the broker have agreed they will both talk to him.

sammy66

Still declining as surveyor will not commit. So waste of time even having had the SE report done. If he had told me in the first place he wouldnt commit rather than let me pay out on a report I wouldnt be as mad. He even told me to use another lender cos at least if this problem arose I would have a SE report!! That says the house is not dropping down surely!! Can I report the surveyor for reco a SE report, the SE report coming back satisfactory but of been no use! all the lender wants to hear is that the surveyor is satisfied. Even the SE said if I got the house and it fell down it would be the SE who was liable and not the surveyor!
Also why did he put a £10k retention on if he had no intention of having the mortgage passed? Even if some work needed doing ASAP and I had it done at a cost of say £5k and the surveyor came back out to check it, that wouldnt of been acceptable either....