can valuers do this?

tech2_2

A freind is buying a house and agreed an asking price of £75,000.

Alls well and then the valuer said that there needs to be damp reapirs and some minor roof repairs and has said there is a £3000 retention on the morgage.

BUT he has said that the property is worth £78,000 so my freind can still get a mortgage for £75,000.....

This seems a little starange or even underhanded in favour of the seller as this is a repo property, if the sale was agreed at £75,000 and it needs £3,000 rentation then should they not ask for the price to be reduced to £72,000????

Any thoughts???

opinions4u

In current condition the property is worth £75,000. I would expect that to be the sum paid to buy it.

Damp work needs to be done. It sounds like the lender is saying that this is a condition of offering the mortgage. Usually the work has to be done within six months of taking ownership of the property, although this can depend on the lender and the type of work.

Any retention will be released once the lender is apply that the work has been done. This money doesn't go to the seller. It goes to the firm doing the work.

When complete the property will be worth £78k.

There is nothing to stop the buyer chancing their arm and reducing their offer to £72k. I'd give it a go.

But the valuer is saying its value today is more.

betmunch

can a valuer value a property?...........

Gentoo365

Of course. If a property is in poor state or needs repair then the initial offer is expected to be low. It seems that the valuer has confirmed that offering under the possible value (i.e. value when issue resolved) was the correct thing to do.

Lender has the choice whether to add conditions to offer.

Conrad

tech2 wrote: »

This seems a little starange or even underhanded in favour of the seller as this is a repo property, if the sale was agreed at £75,000 and it needs £3,000 rentation then should they not ask for the price to be reduced to £72,000????

Any thoughts???

A real family have been repossessed. You want that family to have an even bigger debt so long as your mate gets to save some dosh?

One day that could be you being repossessed and you'll be jolly glad the lender got max price for you.