Offer accepted, Mortgage Formally accepted but Survey has raised a few issues!

emileminy

I am a first time buyer so please bear with me.

to cut a very long story short, I am buying a terraced victorian cottage for £135,000. Because it is a resonably old property I got a structrual survey done just in case. I am SO glad I did as it has flagged up the fact that the whole roof needs replacing.

I have had a local roofer come out and give me a quote and he states its about £5,000 worth of work that needs doing. This has put me in a pickle...

I REALLY want the house but I know that I can not afford to buy it at the current price AND get the roof replaced. So I guess my options are to either request they pay to get the roof done, or I negotiate that they drop the price so I can get this done... or I walk away from the deal.

My question is when do I start these negotiations? I know the seller has pretty much moved out so is very eager to sell but I worry that (with the market the way it is at the moment) I could be pushed aside for a cash buyer who wont complain. But on the other hand, I dont want to leave it till too late which then p***es people off and it ends up back-firing in my face.

I am still awaiting the searches back from my Solicitor and as of yet haven't seen the draft contract / fixtures and fittings list. (have chased my Solicitor about these.)

Lokolo

Ask them to drop it by £2.5k. Then its halfsies.

Another option, still buy it at the price, save some money and get the roof done at a later date (you have said the roof needs replacing, just not how urgently).

Depends how much you really want this house.

emileminy

The Roofer basically said that it needs replacing and not just patching up... in other words it needs to be done now and not later.

I am in no financial position to be able to pay for half to the works AND buy it at the current price, as I put everything I could (pretty much) into my offer. I was nieve and didnt expect something like this to be made clear in the survey.

kingstreet

Mortgage needed?

If the vendor reduced the agreed price, do you actually have the cash to pay for the repairs? The lender will only lend to you based on the purchase price, or valuation, whichever is the lower. So, you wouldn't be able to borrow the money to get the work done if you were already at the maximum, say 90%.

In addition, what does the mortgage report and valuation say? Any essential repairs recommended, as they might make matters worse if a retention is held.

cattie

You should revise your offer straight away & if you have a written quote from the builder for the required work, then copy it & give it to the ea to pass on to the vendor, along with a copy of the survey report, showing the part about the roof, so they will understand that it is a full replacement that is needed & repair is not suitable.

You don't have to let them see any other part of the survey apart from the section dealing with the roof if you don't want to.

emileminy

If the Vendor reduced the price, I would keep back some of my deposit money to then pay for the repairs.

The mortgage provider has been out and done a basic valuation and says that everything is okay. Apparently because it was only a basic valuation though, I don’t get to see a copy of this report.

But, if I held back some of my deposit, would this then mean that my mortgage product is then invalid?

kingstreet

emileminy wrote: »

If the Vendor reduced the price, I would keep back some of my deposit money to then pay for the repairs.

The mortgage provider has been out and done a basic valuation and says that everything is okay. Apparently because it was only a basic valuation though, I don’t get to see a copy of this report.

But, if I held back some of my deposit, would this then mean that my mortgage product is then invalid?

We don't know.

We need to know your current loan to value, the loan to value after any reduction in purchase price and deposit and the LTV banding of the product you've chosen.

Sponge

emileminy wrote: »

If the Vendor reduced the price, I would keep back some of my deposit money to then pay for the repairs.

The mortgage provider has been out and done a basic valuation and says that everything is okay. Apparently because it was only a basic valuation though, I don’t get to see a copy of this report.

But, if I held back some of my deposit, would this then mean that my mortgage product is then invalid?

So your mortgage provider conducted a valuation survey and it didn't pick up any faults? Presumably they haven't applied a retention, witheld or otherwise? What did they value the property at? Will they still provide a mortgage based on your offer?

I see no reason why they won't send you a copy of their valuation as a matter of course. I received mine, on this house and the one I'm currently buying. It's part of the mortgage paperwork, which you're entitled, need, to see.

The roof may need replacing, eventually. But it's possible it won't need doing for many, many years. A surveyor will always cover their own !!!! for fear of being sued. A roofer will always say the roof is in dire need of replacing NOW, as they have a financial interest - it makes them £5000.

As a seller, I would be asking to see the mortgage company's valuation and if it valued the house at the agreed price I would probably refuse to drop.

I would certainly be asking to see all the other reports you're using to re-negotiate; reports that say the roof needs replacing. I'd probably then get my own report, sort any faults, but not go any futher as a brand new roof is beyond remedial works and becomes 'betterment'.

G_M

Another option, still buy it at the price, save some money and get the roof done at a later date (you have said the roof needs replacing, just not how urgently).

emileminy wrote: »

The Roofer basically said that it needs replacing and not just patching up... in other words it needs to be done now and not later.

This does not answer the question - how urgently?

The roofer does NOT seem to be saying "needs to be done now". YOU interpreted that. The roofer is saying:

a) patching is not economic as the job is too big - a new roof is a better option
and/or
b) I can charge you more for a big re-roof job so will recommend not to do a patching job to this gullible FTB

Neither of these answer the question: how urgent?

Is water actually leaking in? Is the attic actually wet? or is it simply an old roof that needs some work in the next 6months/year/two/five years.....?

Yorkie1

Sponge wrote: »

I see no reason why they won't send you a copy of their valuation as a matter of course. I received mine, on this house and the one I'm currently buying. It's part of the mortgage paperwork, which you're entitled, need, to see.
.

I don't think you're automatically entitled to see the lender's valuation. It is done for the lender's sole benefit even though you pay for it.

If you get a housebuyer's survey at the same time, that separate survey is for you as the client and will usually include a valuation for your own purposes.

kingstreet

As usual, it depends on the lender. Some supply a copy of the mortgage report and valuation as a matter of routine. Others don't under any circumstances and the last group will let you have a copy if you ask nicely.