Mortgage Retention - work not needed?

Vlm1986

Hi,

I wonder if any of you can help.

My husband and I have just bought a new house. it was a repossession in need of work - my husband is a builder and our previous property needed work so we are used to it.

The cost of the property reflected its condition and we were prepared for what was needed.

We had a basic survey however the company tore the house to shreds. they stated that we needed wall ties, the house was damp, needed air bricks and had wood worm (all of which we did not agreed )as well as a list of problems we could see (guttering, soffets and facia and lintels needing replacing)

as a condition of our mortgage we had a retention of £6000 added,

we have now started to renovate the property and can PROVE that this work is not needed.

we had a fumagator at the property to do a flea treatment, he did a full inspection of the property and we do not have probles with any infestation inc wood worm

the wall ties they state are rust are perfectly fine, we have photos to prove this

what are our options now. Obviously there is no work to be done - but we have a retention.

We will be contacting the surveyprs and mprtgage company tuesday and are looking to go much higher - to an ombusmun or something.

this company has quoted for work that does not need doing. how is this legal!?

on the plus side we managed to get 2.5k off our purchace price but we knew this work was not needed and now we can prove it.

we will still need to do soffets and facias, lintel replacing etc and this is included in the retention (a few hundred pounds)

Thrugelmir

Rather late to argue over the retention now you have accepted the mortgage offer.


Once you've completed the works to the lenders satisfaction. The retention will be released in full.

Vlm1986

Thanks for your reply,

We are happy to complete the work thats needed -, the main issue we have in that the surveyor has stated that we need some work that is NOT needed. wall ties are perfectly acceptable (we have removed bricks and have photos in various placed) and that we have a problem with woood worm (we paid for a professional pest control company to come in and there is no evidence of any pests atall)

we would like to know where we stand now - obviously the condidtion of the mortgage retention is to have the work done, but if we can prove the survey is wrong, how can we do work that is unnecesary? like there are no wood worm to have treated?!

we are sure that the company are quoting in hope of getting work from the surveys....

Thrugelmir

Vlm1986 wrote: »

we are sure that the company are quoting in hope of getting work from the surveys....

The basic survey is for the purposes of valuing the property for the lender, to ensure that the property is adequate survey for the advance.

So it was up to you to investigate any matters highlighted prior to accepting the mortgage offer. The retention would then have been revised to reflect any subsequent findings.

The surveyors duty is to the lender not you on a basic survey.

Vlm1986

thanks again,

we shall contact our mortgage company on Tuesday - we already raised our concerns with them but we were advised to accept the offer and argue it later as it would hold up the mortgage offer.

the property was valued at its asking price at its current state

what i am trying to find out is how we can meet the requirements of the retention -eg i assume that our letter from a pest control company confirming that there are no wood worm will suffice instead of a wood worm treatment which is unnecessary.

as i just said to my husband its like prescribing nicotine patches to someone who has never smoked! wee dont have wood worm so dont need a treatment...

same goes for the rest of the issues

thanks for your time tonight

Thrugelmir

Vlm1986 wrote: »

we shall contact our mortgage company on Tuesday - we already raised our concerns with them but we were advised to accept the offer and argue it later as it would hold up the mortgage offer.

Given you were buying a repossession then speed was of the essence. As another buyer could have stepped in. Incurring you lost costs. So the advice was sound.

You will be released the £6k. So its not if the money is lost.

kingstreet

A surveyor suggests a retention on a mortgage report and valuation. This is normally subject to confirmation by reports and estimates for the items considered essential. If such reports are obtained early enough, the retention can be lifted altogether if no work is required, reduced if some work is needed, or increased if the cost of the work is higher than the surveyor's suggestion. The mortgage offer would then reflect the fuller picture.

It would appear you did not get any of the reports done, so you have completed with the suggested retention in place. All you have to do now, is obtain the same reports and estimates as you could have obtained previously and provide them to the surveyor. As long as those from whom you seek the reports hold qualifications in their respective trades, their inspections and reports should be accepted, whatever their results.

Provided the professionals' opinions affirm your assertion that no remedial action is needed, your retention should be lifted and the funds released. Remember, you normally only have six months to have the retention released so prompt action is required.