repo help money

gingerbean88

Hi everyone,

I have put in an offer on a repossessed house for 73950. It was listed at 74950. Since the offer of acceptance I have had a survey and its brought up 5000+vat worth of work. I have asked the estate agents for a reduction of 5500. He said he doesn't think they will say yes to that amount. The thing is I have no money for the work that needs doing. My deposit is 15% of 73950. And that's all I have. I just need some advice on my options. If they report company says yes and sells me the house for 68850 do I have to put 15% deposit down and save up for the work that needs doing or would the bank still lend me 73950 and I give them 15% and them give me 5500. I don't know, please help.

Wutang_2

So, offer on property made & no idea what you're doing?

opinions4u

Sounds like you can't afford it then.

The lender may put a retention on your mortgage and release funds once the work is done, but you still need tradesmen willing to work without payment until a retention is released.

Annisele

If your offer of £68,850 is accepted, then on an 85% LTV mortgage the maximum the lender will lend is £58,522.50. The rest of the purchase price, all costs, and all renovation costs will have to come from your pocket.

The lender will not lend you £73,950 on a house that's only worth £68,850.

So yes - sounds like if you do buy the house, you'll have to get saving.

kingstreet

If there is a retention, you'll have to increase your deposit to be able to purchase. This is money held back from the mortgage advance at completion, until essential repairs are done.

A property which needs work may not be a good idea for a FTB with a limited budget.

What does the mortgage report & valuation say?

Dave_Ham

Its such a shame you did not post before paying for a valuation.

Repo properties always look like a good idea as the prices are artificially low. Problem is once you start to incur cost, mysterious other buyers come in and the price increases.

Learn the harsh lesson and call this a day now, it is not likely to end well.

All the best