couple of questions about lloyds tsb mortgage

wannahouse

hi

i have a few questions i would like peoples opinions on...
i have been reassured all is fine by lloyds MA and also husband and solicitors, but info i read here conflicts with what i've been told.

we are getting a mortgage thru lloyds tsb.
we chose this route as it was the easiest way to get a mortgage in our case, due to how we earn our money...
all our info was sent to underwriting, after the credit check (experian score 992) and were were manually approved for an AIP with lloyds, and have now done the full application and are waiting on the valuation (it has been over 2 weeks as they stuffed up transferring the full valuation fee to the valuers - £499! :eek:)
it will be 15% deposit down, at 4.1 % interest...
we're not really in a position to bargain, as we are both self employed, and husband had just switched over to a company.

1) AIP- its been to underwriting and approved...how airtight in general is a lloyds tsb AIP?

2) it is a magnificent old home, on a good parcel of land, but needs some work, but in good shape for its age..and a BARGAIN for the price we are getting it for! they just need it sold....
it has a few issues that don't threaten its structure, and will be easily remedied, but the lloyds MA said the valuer will go out, and then probably ,most likely recommend a specialist report be done on these issues...
then we can get a specialist in old historic buildings to come out and do a report and MA said he will have the sway on whether they lend or not, and may suggest a few things to be done before they lend (but lloyds don't do retentions, so we will have to shell out for the works before we buy it..and we are sure the vendor will allow that- they are very laid back, and it will only improve their building should something go wrong...) the MA said we would exchange contracts and then do the works before completion...he has had a case last week where the lady exchanged 7 mths ago and then just came back now with the works signed off to complete...hence wondering how airtight the AIP is, as we will have to exchange before we have the mortgage offer...

so thoughts on these things please, and any enlightenment on issues i may not have thought of, or suggestions please...

wannahouse

anyone????

bigadaj

Are you saying you'll be doing up someone else's house before buying it? Sounds very risky to me, but its your choice.

In the meantime where would you live, and if you don't get a mortgage all your money is wasted. Even if you get the mortgage then there is nothing to stop the seller from reneging on the deal and pulling out after you've spent the money, very odd way of doing things.

wannahouse

we would have to exchange contracts first...the house has not been lived in for a number of years, and we wouldn't be doing it up cosmetically, but only sorting out whatever lloyds thought was a risk to the building ,before they will ok the money being lent...
once we rectify whatever the problem is, the surveyor will give to ok, and lloyds will lend...but they wont lend until the jobs are done...
we would have to do it that way ,as they don't do retentions...

bigadaj

I'd speak to a conveyancing solicitor first and seek their opinion, looks very unusual and I can't see how everyone's interests can be protected adequately by such a scheme.

Thrugelmir

Do you know the current owners?

Why is the property a historic house?

wannahouse

its a grade 2 listed house in our local area and is one of the few examples of that area in the area..the house has had many notable local historical figures that have lived in it...our agent, who we know very well, knows the vendors children ,who are selling it for them..
the only way we will b able to get it, since we can't buy for cash, is if we remedy any `'risky`' area that the mortgage company tells us to, or they won't lend, as they want to make sure the house is suitable security for the loan..
the house is actually in very good shape for its age, but like all old houses, has one or two things they will point their finger at, so its a given we will have to do these works btwn exchange and completion.

GMS

What works are you expecting to be required?

Thrugelmir

Being Grade 2 listed may well explain the bargain price.

Why type of survey did you choose?

bigadaj

OP, any works to a listed building are incredibly tortuous and painful. Any changes are incredibly costly, require approval from specialists and can take signficantly longer and be more costly than was envisaged.

If I were the vendor I'd be tempted to want some of the uplift in price from the works being undertaken, is this being considered?

wannahouse

bigadaj wrote: »

OP, any works to a listed building are incredibly tortuous and painful. Any changes are incredibly costly, require approval from specialists and can take signficantly longer and be more costly than was envisaged.

If I were the vendor I'd be tempted to want some of the uplift in price from the works being undertaken, is this being considered?

we have already been through the house asking all our questions with the conservation officer, and he was very positive..they seem a bit easier going in this area..he said they'd allow us to replace a few ceiling in the house with plasterboard, instead of lime plaster if we wished, which we didn't expect...
the works we'd need to do ,to get the mortgage, would be lowering the ground level outside in one area, as its too high, and causing the water to wick up water...it has had a concrete path put in out there which doesn't work for the type of building at all..
we would also most likely have to get a tree surgeon in to crown a tree and restrict its growth, and an electrician to test all the circuits, but the electricity is still connected and working.

the vendor couldn't (and wouldn't) put the price up after we had done the works, as we'd have already exchanged contracts at that point...
whatsmore, they can't afford to maintain the building, and need to sell it...

we have a surveyor who specialises in old and historic buildings doing the further survey once the banks surveyor has done the valuation .

the agent hasn't batted an eyelid when we said we may be expected to do a few things before the bank will give the money...


we'd also have to patch some holes in the roof