We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Mortgage Retention Query
Options

BookLover_4
Posts: 24 Forumite
We've just been told by our mortgage advisor that it is likely our lender will take a retention from the value of the mortgage for the value of the works recommended - i.e. damp proofing, possibly replacing wall ties and some masonary repairs. We're awaiting quotes for the work needed but just say the price comes back at £10K and we negotiate with the sellers for them to reduce the price how does this effect the amount the bank are willing to lend?
We need to borrow £170K but say they will only lend £160K with £10K on retention and we manage to negotiate the price so we only need to borrow £160K (probably wishful thinking) will the bank still put a retention on this? Sorry for the long post but really confused. Some advice would be very much appreciated
We need to borrow £170K but say they will only lend £160K with £10K on retention and we manage to negotiate the price so we only need to borrow £160K (probably wishful thinking) will the bank still put a retention on this? Sorry for the long post but really confused. Some advice would be very much appreciated

0
Comments
-
Once the D&T report comes back, the retention may be revised/lifted.
If not and there is remedial works, having the vendors satisfy the required works, would always be my approach.
Holly0 -
The retention will still be applied if the works are considered essential by the surveyor. Even if the price is reduced by the same amount.
Basically, you'll need to increase your deposit by the amount of the essential repairs, then get the money released as soon as the work is done.
As holly said, best bet is to get the vendor to do the repairs and pay them the agreed price as long as it's valued at that amount once the repairs are completed.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thank you both that does make things clearer.Hopefully the vendors will be open to negotiations about the repairs otherwise we will have no choice but to walk away.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards