HELP - my mortgage is falling through week 15

JoeK_3

I think the point here is that the OP does not have the £10,000 to pay for the damp proof costs.

I know that he can call this down after the work is done but the lender will not advance this until after the work has been completed, which would be after completion.

The OP needs the money, before completion or the purchase price reducing by that amount.

JoeK

homer_j_3

The valuer has said the property is worth 100k when all outstanding work has been done or 90k in its current condition.

If the buyer was to go back to the seller and say that we have now agreed a price of 90k for purchase price, it MAY mean that the lender will still hold a retention back because the work that has to be done has a potential bearing on future resale value if not sorted quickly (hence why lender put timescales on getting work done). Not all lenders work this way but a few do so you have to be careful about discussing this.

You need to get the seller to pay for the works between exchange and completion if your seller wants 100k. Doing it between these 2 events gives the seller you are 100% committed to buying.

Another option is to get the sale price agreed at 100k on paper and with the agreement that the money being received will be 90k. If you cannot afford the 10k yourself do as Marky Mark states - find a workman that will do the work on the basis that you will pay them once the bank has paid you then I can see the frustration that you are facing.

Did the specialist reports confirm that the work required equates to 10k? If so then it may be worth getting a second or 3rd opinion because if you can get an estimate that is lower then you can maybe reduce the retention (or know that you can profit a little one work has been done)

Lipstick_2

evosy1978 wrote: »

Hey Lipstick

"""if you can get away with it!"""

sorry lipstick I did not understand this comment. what is he trying to get away with?


"""OP, get to the vendor and tell him to knock £10,000 off the price or the deal is off and stop being stressed my dear."""

As Ive said twice in my previous posts if you had read them?, the lender is taking £10,000 of the price instead of letting me have the £10,000 in cash for the works.!!!

As for the deal is off bit - I know!!.

An for your last comment hmmm a tad inappropriate at this moment in time.

Not as difficult as it seems when you have slept on it.

"Trying to get away with it" means - the vendor is trying it on" but he is also trying to help in his way.

Can you negotiate with the damp proof contractor to pay them from the retention money?

Luv

Lipstick

MarkyMarkD

I agree with Lipstick. Get the contractor to accept being paid from the retention money as there's no way they'll get the work from you otherwise.

I don't agree with

homerj wrote:

You need to get the seller to pay for the works between exchange and completion if your seller wants 100k. Doing it between these 2 events gives the seller you are 100% committed to buying.

Once you have exchanged, aren't you are legally liable to complete? Wouldn't you be stuffed if the vendor pretended they were going to get the work done, but didn't? Wouldn't you be left having to sue them for damages, having meanwhile failed to complete because you didn't have the £10k because the lender had retained it?

homer_j_3

No you wouldnt be stuffed because it forms part of the contract that these works are carried out. Yes you have to complete but if the seller does not provide the relevant certificates and warranties then they have broken contract and they can be liable for the buyers costs.

firesidemaid

OP, i take it there is no existing warranty / guarantee re damp/timber work?

it may be up to 25 years old - the warranty that is?

have you followed that avenue?

i had to walk away from a situation like this with my first property as i didn't have the money.