Withholding funds

kingstreet

If you obtain the necessary report (using an independent surveyor not a contractor which stands to gain from work needed) it may indicate nothing is required and the surveyor will then release the retention and you will be able to continue.

If some remedial work is required, the cost given in the report may become the surveyor's suggested retention, rather than 100%.

Independent timber and damp surveyors;-

http://www.independentdampsurveyors.co.uk/

Gary123456790

Almo wrote: »

Sounds like it worked well for you Gary, are you in the house now?

We completed a few weeks ago but are going to completely renovate the property including 2 storey extension so no we're not in yet!

Gary.

wannahouse

our mortgage is conditional on completing some works before completion, so we need to exchange, do the works, have them inspected, then the bank will allow us to complete and release the funds.
we will be spending about £30,000 on the place before we even own it! fun and games!
the house has been empty for 5 years and needs to be completely renovated, so we went into it with our eyes open, and the vendor is happy for us to do these works after exchange.
The price we are buying it for reflects the fact that it is a difficult purchase, but hopefully we can exchange in a week or two and get started, as we are losing the decent weather now!

seems alot of banks are doing this instead of offering retentions.
I prefer it this way any way, as if they gave us £30,000 less for the house, then we would have to use our funds to top up the purchase price and would no longer have money to do the works also!

amnblog

What is the general view here on spending £30,000 on a property before completion of the purchase?

witchy1066

in my case I have been advised not to offer to do anything , but we are no where near exchange stage ,

its down to the vender to address the "issues"
once we/he know what the "issues" are then maybe the vender can do what our lender requires,

I also have to say we have not been given any conditions or retentions from our lender, wish we had , at least then we could move forward but as it stands we are in limbo

is it normal for the lenders to overrule the valuation survey ?

wannahouse

amnblog wrote: »

What is the general view here on spending £30,000 on a property before completion of the purchase?

i imagine 99% of people wouldn't even entertain it!
in our situation, the house would be cash only buyers, under any other circumstances , but we are getting an amazing house, on an amazing piece of land,for a very good price and we are lucky that the vendor has been extremely patient, waiting for us to get to the point of exchange.
the reason she is, is that she wants it to be a family home.
everyone else wanting to buy it, wanted to make a fast buck.
she is very old, and not interested in pulling a fast one, just that it is sold before she passes.
the solicitors have worked a clause into the contract that should they pull out after exchange they are liable for all the costs of the works to date.
there is too much detail to put in a post, and i do not want to do that anyway, but we'll be fine in this situation.