Any lenders less likely to place a retention?

moneyshoe

I have an appointment to view a property on Sat.

It looks amazing - it's on the market for offers around £295,000 the estate agent told me he thought it needed around £200,000 of work to completely restore it and though it is habitable he thought the bank would place a 'massive' retention on it. I was so shocked I didn't think to ask how much he though this would be and where he got these figures from. Anyway I'm not totally put off, this house would be a loooong term project but a forever home, I have a very handy husband and family.

Does anybody know if some lenders are more likely to put retentions on than others? We don't have £200,000 upfront to spend on repairs but could manage around around £100,000 and still get a decent mortgage and have money each month to spend on work. But if the bank retain that £100,000 how do we get the money to do the work....................

wannahouse

moneyshoe wrote: »

I have an appointment to view a property on Sat.

It looks amazing - it's on the market for offers around £295,000 the estate agent told me he thought it needed around £200,000 of work to completely restore it and though it is habitable he thought the bank would place a 'massive' retention on it. I was so shocked I didn't think to ask how much he though this would be and where he got these figures from. Anyway I'm not totally put off, this house would be a loooong term project but a forever home, I have a very handy husband and family.

Does anybody know if some lenders are more likely to put retentions on than others? We don't have £200,000 upfront to spend on repairs but could manage around around £100,000 and still get a decent mortgage and have money each month to spend on work. But if the bank retain that £100,000 how do we get the money to do the work....................

what country is it in?
england or wales???

why don't you go for a loan thru build store or someone who gives you money to purchase it, then releases the fund via stages to renovate?

kingstreet

moneyshoe wrote: »

I was so shocked I didn't think to ask how much he though this would be and where he got these figures from

I suspect from an earlier offer where the purchaser was a low-cash, high-mortgage buyer who ended up pulling out because they could not get the property into "suitable security" condition fast enough.

If the lender's surveyor suggests a £100k retention, you get your reports and estimates done, which will probably suggest it will cost £50k, not £100k.

Then, you complete using £50k to bridge the retention and the other £50k to get the property to suitable security stage to get your extra £50k released. Then, you spend that £50k to turn it into the home you want.

wannahouse

we have a situation like kingstreet is describing at the moment...
we are going thru lloyds tsb for our mortgage, and they don't do retentions...
its either a big fat no, OR do the works BEFORE completion, having exchanged with a mortgage offer that is conditional on doing the laundry list before the will issue the funds for completion...once done and inspected, they wil release funds so you can complete...