Too late to pull out of buying ?

Rubyminx

Using a mortgage broker, we had a valuation completed on property. Broker advised that valuation was ok, so went ahead and applied for mortgage. Halifax have agreed mortgage after valuation....we waited for a copy of valuation which never arrived. Because broker advised there were no problems, we progressed to sign contracts yesterday....valuation received today. Valuation highlights woodworm and dampness in walls that might affect flooring - what can we do ? Advice please !!!

Voyager2002

Have you "exchanged contracts"? The fact that you or your solicitor has a copy of the contract with your signature on it means nothing: you are committed from the moment when the copy that you have signed is given to the vendor. In practice this is simply a matter of the solicitors agreeing the exchange has taken place. So you need to contact your solicitor ASAP and tell them not to exchange if they have not done so already.

In any case, your next step is to get quotes for putting right the problems, and then decide whether it is worth making a fuss. If so, ask your solicitor to explain your options.

Yorkie1

It depends whether you have actually exchanged contracts - or whether you have just signed them in preparation for exchange.

If you have not actually exchanged (check with your solicitor if you're not sure) then you can still pull out. Make sure your solicitor knows not to exchange until you give the go ahead.

If you have already exchanged then I'm afraid it is too late.

What did the surveyor actually say in the report? If the Halifax has agreed the mortgage, it might not be too bad.

Assuming you haven't exchanged, you can either withdraw fully or delay pending further investigations. However, sometimes surveys look a lot more scary than they actually mean - hence asking for the actual wording.

Rubyminx

Thanks...the report states in the section "Matters affecting value" ...there is evidence of dampness to ground floor walls and timbers in contact may be defective. You should instruct a damp and timber treatment contractor to investigate the full extent and carry out necessary repair work. T
There is evidence of woodworking insect infestation. You should instruct a timber treatment contractor to investigate etc....
Flooring to the ground floor may be defective...you should contact a contractor to investigate etc....."
We have signed the contracts but believe they have not been exchanged as yet......

mynameisdave

It sounds like it is not too late to pull out.

If the valuation has highlighted the problems then the mortgage company won't have released the funds. Whatever you have signed sounds like a mortgage application.

If the mortgage company think there are problems with the house they aint going to give you a wedge of cash to buy a house when they think there are problems affecting the asking price.

It doesn't sound like you have exchanged contracts with the vendor so you have not passed the point of no return.

edit: my above assumes the solicitor is not letting you progress without the funds being there. If the mortgage company highlight the problems but will still release funds then I suppose contacts might have been signed.

jackomdj

mynameisdave wrote: »

edit: my above assumes the solicitor is not letting you progress without the funds being there. If the mortgage company highlight the problems but will still release funds then I suppose contacts might have been signed.

I read it that contracts have been signed. So long as the exchange of the contracts has not taken place you can pull out.

maninthestreet

After contacting your solicitor to ensure contract exchange is put in hold, I would be contacting the mortgage broker and ask him how why he thinks a property with damp and woodworm has 'no problems'.

kingstreet

If you decide to continue. Consult an independent timber and damp surveyor and pay for a report. Typically, chartered surveyors press a moisture meter against the wall and if they get a reading it's "damp."

This may well not be the case. Moisture can be caused by a number of minor issues such as leaky rainwater goods and is easily remedied.

If you ask a contractor, chances are their "free report" will recommend a damp course at a cost of several thousand pounds. Surprised?

Although not strictly about the same subject, this link reinforces the point;-

https://forums.moneysavingexpert.com/discussion/comment/61722413#Comment_61722413

Can I finally mention, brokers do not get a copy of a valuation from Halifax. If a broker tells you the valuation is ok, it's because it has been received at Halifax and nothing has been said to the broker.

Rubyminx

Thanks everybody....you put my mind at rest ! We have not exchanged and so have put it on hold until we get a report. There had already been a survey done for previous buyers who pulled out after they split up....it had revealed damp, which the vendor then sorted out before our survey was completed. There would have been 3 months between surveys with the work being done in between, so we are wondering if there is residual damp ? Apparently, we can have the damp area injected again as this work is still under guarantee. Not sure about the woodworm or the possibly dodgy floor though ! The house was built in 1923 so there's got to be some wear and tear....not expecting perfection, but do not want, or can afford, a whole lot of hassle ! Thank you King for that link.....very informative. Ruby

FTBuyerGlasgow

Sounds like the vendor's surveyor has been negligent. If they missed obvious signs of damp that a mortgage lender has picked up on that sounds ominous.

I'd recommend you seek expert advice regarding the damp and woodworm. You could use this to re-negotiate the price but also bear in mind it might be better to walk away while you can.

Damp is easily cured (stop the moisture penetration or create a moisture barrier for rising damp - sounds like they have attempted this) but woodworm is an insect infestation that thrives in certain environments. I'd be much more concerned about the woodworm although it is not altogether insurmountable if you have your heart set on this house.

vectistim

Rubyminx wrote: »

Thanks everybody....you put my mind at rest ! We have not exchanged and so have put it on hold until we get a report. There had already been a survey done for previous buyers who pulled out after they split up....it had revealed damp, which the vendor then sorted out before our survey was completed. There would have been 3 months between surveys with the work being done in between, so we are wondering if there is residual damp ? Apparently, we can have the damp area injected again as this work is still under guarantee.

When you get damp in a wall the result is generally that various salt crystals form, these lower the electrical resistance of the wall so that it conducts electricity. A surveyor's damp meter simply checks the electrical conductivity of a wall and if it conducts well (ie: has salts) the meter says it's damp. Once the area has been treated to eradicate the source of the damp and it has dried out those salts generally remain, so if a subsequent surveyor checks the wall still conducts electricity and so the meter flags it up.

Did you pay for a survey beyond the basic mortgage valuation? If it was just a basic mortgage valuation essentially all you have is the surveyor telling you that there has at some time been some damp in the property. But if the current owners have recently seen to it, and have reputable guarantees that should be all right.

With the damp, has the cause been identified, and rectified? Unwanted moisture will generally come from one or more of these:
1) Condensation
2) Leaking plumbing
3) Condensation
4) Blocked gutters
5) Condensation
6) External ground rising up beyond the damp course (if any)
7) Condensation

Similarly - this is a 90 year old house. It would be very unusual if such a dwelling had not had some wood boring beetles of some sort some time during its lifetime. Woodworm holes that are visible on a piece of wood are generally exit flight holes - ie: that is evidence of the beetles maturing from their larval stage and leaving the wood. If there is fresh woody dust around the exit holes that would suggest a more recent attack, but once in a piece of wood the exit holes are always there. Keeping the timbers dry helps deter future infestations, and any treatments should come with a similar long term guarantee to the damp.