Don't understand mortgage valuation! Help!

jennfercain

Hi

I'm in the process of buy my first property. I've applied for a mortgage, had the valuation and home buyers survey done and so far I've received back a mortgage offer with the mortgage valuation but I'm still waiting on home buyers report.

I'm confused because the offer seems to have gone ahead, the first page of letter from Nationwide says 'We are pleased to offer you a loan', but in the Mortgage Valuation Report it seems to say something different.
There is a section titled 'WORKS TO BE CARRIED OUT AS CONDITION OF MORTGAGE SUBJECT TO RETENTION BELOW. (LISTING SHOULD ONLY INCLUDE WORK ABSOLUTELY NECESSARY TO PROTECT SOCIETY'S SECURITY, THE AMOUNT OF ADVANCE MUST BE IGNORED). There are three items listed which are as follows: PROVIDE ADDITIONAL BRACING TO ROOF TRUSSES TO COMPLY WITH CURRENT BUILDING PRACTICE. INSTRUCT A QUALIFIED ELECTRICIAN TO INSPECT THE ELECTRICAL INSTALLATION AND CARRY OUT RECOMMENDED WORKS. INSTRUCT A QUALIFIED HEATING ENGINEER TO INSPECT HEATING AND PLUMING SYSTEMS AND CARRY OUT RECOMMENDED WORKS.

The retention is £1000, but it also states that this is the minimum retention and not an estimate of the costs. It says the applicant should obtain detailed estimates before proceeding with the purchase.

What also confuses me if that the valuation of the property in present condition is 135,000 which is what we have offered.

Does this mean that the works have to be done before I can get a mortgage? and if so who is meant to carry out the works, should it be the present owner?

I don't know if I could afford to get these works done. If they knocked the amount off the 135,000 that still wouldn't help because I wouldn't physically have the money to enable me to do the works, it would only make my mortgage repayments slightly cheaper.

Please can someone help me! The woman at the solicitors didn't seem to know much, my mortgage adviser acted as though it wasn't a problem and the surveyors still need to get back to me! Help!

Mr_helpful

If theres a retention then that amount of money is held back by the lender until works have been done. I would wait for home buyers report. Rather than renegotiate price I which means waiting for new mortgage offer I would try to get the vendors to do the work.