Rentention

MX5huggy

Just had mortgage valuation back. NW want to retain £1000 for a damp chimney.

This is on LTV of 36%!

I understand I would have to get a professional in to sort the damp.

Do I have to get the work done? I would prefer to do it my self, probably find a bit of lead or ventilation will sort it.

Or can I choose not to and forgo the £1000 if I did this would I pay intrest on the £1000 for the 25years?

_Andy_

What did NW say when you asked them this?

MX5huggy

I got the mortgage offer at 21:27 tonight, I am not going to try to talk to them now. I want to know what is normal.

holly_hobby

A rentention if just partial, means that they will lend you the mge amount request, you guessed it, less the £1,000 retention for the works(which is the estimate cost of repair).

You can choose to proceed with the offer as it stands (funding the £1k retention from your own funds), and if you get the works done (with completion certs), within 6 mths of completion, you can request the £1,000 to be drawndown (or not bother and leave your mge amount as it stands).

Or, you could go back to the vendor and have them deal with the issue pre-completion, or negotiate a reduction in sale price (nb- although the 1k retention (as its a est. cost of works) will of course still apply, even to a reduced mge amount).

Hope this helps

Holly

kingstreet

Interest is not paid on the retention.

You will have to make up the purchase monies with a £1,000 increase in your deposit.

Thrugelmir

MX5huggy wrote: »

This is on LTV of 36%!

LTV has no relevance.

The lender wishes the property on which the mortgage advance is going to be secured to be put into good condition.

Wh05apk

You could probably go back to the lender and ask for the mortgage to be increased by £1,000 to offset the retention (unless you are already maxed out on affordability?)