lender's survey supports valuation / our HB survey suggests a prob - what must i do?

sheeppappar

Hi there
Sorry this is a bit long

I hope this is the right place to ask as it's a question in principle about the mortgage process & there seem to be people posting on here who can answer from the bank's point of view. If not maybe someone could move it for me

I have made an offer on a house and had it accepted. The bank's approved my mortgage and I've received the offer letter today - their valuation/survey report says the market value supports the mortgage I want so they have given the go-ahead.

However.. I separately arranged a RICS Homebuyers survey just for my own peace of mind. The report for that says because of the age and location of the house I need further tests to make sure it's not at risk from sulphate attack (won't bore you with the details of that but if it's at risk, the cost to fix it could be in the region of £15k).

I'm currently waiting for the vendor to say whether she will pay for the tests (£850) to decide what to do. If it comes back "at risk" we will either renegotiate the price or walk away. However if we do renegotiate the price do we have to tell the bank the reason why? My surveyor says we do and reckons the bank would withdraw the mortgage offer, but wanted others' input - after all the bank has engaged their own surveyor who has told them everything is hunky dory.

Because of my job there is no way I would take a risk on not telling the bank if I must...even if it was a grey area as to whether I should then I will. But wondered if anyone had anything to say on the matter.
thanks in advance
x

kingstreet

An SO4 test should cost nothing like £850.

Last one I got done was about £100 and that included the analysis at Staffordshire University.

IMHO you simply tell the lender that the purchase price and mortgage amount have changed. You do not have a duty of care to supply information not requested by its own surveyor.

However, if there is an SO4 problem, you would be advised not to purchase until the floors have been taken up, the infill removed and replaced with an inert substance, a damp-proof membrane added and the floors replaced.

kingstreet

I've just emailed a local firm here in Staffordshire to find out an up to date price for a test and analysis.

sheeppappar

Thankyou.. yep the works you say may need doing are the ones we would renegotiate the price on.

I would be really interested in the updated quote - our quote was £500 to physically take the sample plus £350 for lab analysis. To be fair I haven't tried to look for better quotes as I've told the seller she can get it done by anyone she likes, as cheap as she likes, as long as it's the proper test done by a reputable firm... but it sounds way out of whack compared to your estimate.

I guess you are right. If they ask why then I won't lie to them but I suppose I could keep it on a need to know basis

elmer

To be honest if you wanted tests done like that on my house, I dont think I would be paying. If you want the test, you pay.

elmer

sheeppappar

thanks elmer.. if they don't pay then they don't get the sale.. so it's up to them! I expect anyone else's survey will come up with the same problem so it's as well they find out
i didnt mention actually that we have said we will split the cost 50/50 if the test comes back ok

kingstreet

How long have they lived there?

This issue has been known about for a number of years. I first came across it in Stoke On Trent in 1995 and it affects property built between 1955 and 1975 or thereabouts.

Did the vendor have a test done at the time of purchase, if reasonably recent?

sheeppappar

Hello - yes seems like staffs is a nightmare area for it too - we are in the north east in a village which used to have 4-5 pits in the immediate area - house was built in 1963 so right in the danger zone on both counts unfortunately!
The house is being sold by a daughter who has inherited the house and looking at the house it's likely that the parents lived there since the house was constructed. Local estate agents seem mystified by the suggestion of sulphate attack (ie have never heard of it) and aren't aware of it rearing its head on that estate.. fingers crossed I suppose. Thanks for your contributions though

kingstreet

I got the quote back from a local firm down here. The figure is £164 including the analysis.

bigadaj

But someone needs to interpret the results which could cost more.

Sulphate problems can be two fold, either swelling due to mine slag waste expanidign when hydrated, or simple attack on concrete that has not been cast to resist it, need to know which this is.

sheeppappar

thanks both
kingstreet - please could you let me know which firm it is / pm me the quote? just so i can go back to our surveyor and query his estimate of cost to do it?
thankyou