Survey has highlighted repairs

quantic

So a friend of mine is buying his first house and has just got his builders survey back, its stating that the house needs some work carrying out on the roof and some other areas.

His origional offer of 180k was accepted but it is now looking like he will need to spend 20k fixing the areas of damage, so heres my question (I think I already know the answer).

If he gets the vendors to accept 160k, will he still be able to get a mortgage for 180k and have the work done upon completion or would the mortgage provider revise their mortgage offer to fit the new 160k purchase price?

desthemoaner

I've no idea whether 100 per cent mortgages are still available, but the mortgage lender's valuation is the maximum that they will lend on that specific property.

I agreed a purchase price with the vendor of my current property, only to be told by the lender that it was worth two grand less. Fortunately we only had to borrow eighty per cent so we were still able to complete.

quantic

See thats the bit I don't understand, they have valued it at 180k even in the current state, so thats why im confused as to what would happen if he ended up getting it for 160k...

R_P_W

No they will lend based on the purchase price. So you can't buy for 160 and borrow 180. How much deposit?

casperlarue

It's a longtime since I bought a property but here goes.....

House is valued at £180k, so bank will lend 90% / 95% (whatever the maximum loan to value is on his deal) and your friend has to make up the additional 10% / 5% as his deposit. This depends if the bank valuation comes back at £180k, they may well value it lower.

quantic

Thanks everyone, your understanding of it was the same as mine, but people in the office were trying to tell me that you can borrow against the origional price which you clearly cant.