100% retention on a house!

zeegirl

The only thing i signed was statement of facts and the mortagage repayments. No other copies were given to me and i paid out a sum that went directly to the advisor.

harvey115

There it goes.

The least professional people in the industry (Estate Agent Mortgage Advisors). These people are most popular about the mess they create.

I would say it was due to the ignorance and in-experience of the advisor that cost you the money and not your fault. Although you should have tried to seek independent advice because buying repossesed houses is not something everyone does.

Leon_W

Personally, if a client told me that the property they were thinking of buying had no kitchen or bathroom then I would tell them to look for another property. No mortgage lender will accept a property without these unless it has been specifically agreed beforhand.

Your adviser should be well aware that no kitchen/no bathroom equals no mortgage.

Thrugelmir

zeegirl wrote: »

My issue is that my advisor had not mention ANY of this at the time of dealing and told me it was fine, and he had all the photos and documentation of the property as he was an advisor from the estate agent that was dealing with the property. He even had the photos with him on our first meeting as we were joking about the decor.

You appear to be assuming that the advisor would have known that the property was unmortagable. On the basis of probability wasn't aware until the surveyors report.

So how did you run up a £2k bill?

holly_hobby

This is just my twopence worth from what I've read.

EA was selling a property, that had no bathroom or kitchen (at least functional that is).

You sought advice and recommendation from the EA Mge Advisor - who you say from inception was aware that the property had no bathroom or kitchen.

The adviser took fees from you, and submitted a mge app on your behalf - which following successful status checks, proceeded to survey.

Surveyor takes one look and has a heartattack ... full rentention ...

Is that it in a nutshell ?

Assuming it is ...

This is a complaint really regarding service IMHO not mortgage advice (which is really pertinent to rates, terms, repayment methods etc).

The EA Mge Adviser, should be aware of basic underwriting and suitable property requriements (of which this is) - to which a survey isn't needed to tell an experienced adviser that a property minus a bathroom and kitchen is not suitable security for a residential mge - as its not classed as habital - end of.

The adviser sounds inexperienced to me (or didn't know the poor state of the property, which you insist he did), but in his defence I don't believe his mistake was deliberate, more a lack of knowledge and experience - of course my comments and that of Kings, Dave Ham (if he pops in) (apols to other guys I've missed off my shortlist), ae all based on yrs of experience and seeing 1000's of surveys, which is why we would have said straight off this unit wasn't mortgagable in its current state, so a cash pch would be reqd or a development mge if the rest of the case fit (Build Store I think is the lender for Renovation business, Dave H is pretty au fait with them AFAIK so he may confirm if he pops in). !!

If you wanted to lodge a complaint, it should be to the EA, regarding the level of service from their Adviser (as I say its nothing to do with mge advice really). Requesting a full refund of fees incurred due to the Advisers ommission/failure to identify that basic requirements underpinning a mortgageable property, were missing from the property, and thereby their acceptance (and loss) of associated fees in the submission of a mge app was essentially negligence on their part. (this is best I can offer I'm afraid, and be prepared for the EA to reject this).

Quick Q - do you know if a copy of the property details were submitted with the mge app to the lender ? If so, and they went to survey knowing that there was no functioning bathroom/kitchen (which is basic property criteria) - this may be another angle to pursue re any pursuance for refund of fees.

Just my opinion - others may differ.

Hope this helps

Holly

Dave_Ham

Thanks Holly,

My opinion is that the advisor has seen you coming. Can you breakdown the £2,000 costs please.

It is either a rip off or an extremely inexperienced advisor. I am sure they would know about the kitchen/bathroom rule as it is fundamental to the valuation.

Complain away in writing...

Whilst they may have played you, you have made it easy for them as you appear to have done little research as the first rule of thumb with Estate Agents is not to trust them. Probably on page 1 of google.

Being a tad naive should not cost you £2k though...

ILW

zeegirl wrote: »

I dont think you are clear on my situation! i'm very clear on the matter now and understand the processes. My issue is that my advisor had not mention ANY of this at the time of dealing and told me it was fine, and he had all the photos and documentation of the property as he was an advisor from the estate agent that was dealing with the property. He even had the photos with him on our first meeting as we were joking about the decor. If i had been fully informed of these matters, ie retention, house condition, i may not have continued with the sale. It was made out to be a smooth easy process which has been far from that. Hard lessons learnt but did i need to learn it myself or should have i been told about this is the QUESTION im asking?!

You were setting up a business transaction (not a normal house purchase). Before trying to become the next Alan Sugar, you really should educate yourself on the pitfalls.

roonaldo

sounds like you're buying a dump

northerner999

I have sympathy if you've become stuck in a tough situation, but if you had not even heard of the concept of gazumping then I suggest you were not prepared to move into BTL. I also suggest that you had a responsibility, as someone who wants to be a landlord and legally, morally and financially responsible for someone's home, to check whether there may be issues securing a mortgage on a property that has no kitchen or bathroom at the point of purchase.

I hope you can claim back some of your money, but a lot more research was needed.

zeegirl

Break-down of cost
399- advisors cost
315- lenders valuaton/survey
180- lenders fees
199- private valuation - which i got done incase theres was hidden problems like damping and asbestos but these were all fine.
817- solicitors fees- which include searches and contracts (i dont begrudge these fees)

The property im living in, was in a similiar state and was only brought 3 years ago and everything went smoothly. The refurbishment was done costing a fraction of the price due to my partner and his skllled friends. So didnt think there was a risk in buying a run-down property.

I had savings, thought about the future and an opportunity popped up and i took it. i wasnt looking to make a large amount back, just didnt expect to make a loss with nothing in return. As a twenty odd year old i thought that was a wise option instead of spending it, but spending it on shoes and clothes seem so much of a better idea now!

Im not seeking compensation as i do take some responsibilty in the fact i did no research and trust solely on the advice given. i just wanted to know if this is what property buying involves (which is a bit worrying if people are chucking in the little money they have into it)and whether i should complain so they re-look and the system.