survey back - mortgage lender would lend 2k less

rammster

Absolutely dumb FTB here.

After the valuation report (full structural survey), which showed roof repairs and electrical box need updating. The valuer wrote that the property would go for 2 grand less than asking price and that I negotiate accordingly.
But my EA is a fox and the seller is greed personified. So they are not budging at the moment. This has been followed by a letter from mortgage lender which has suggested the following:
1. Get a qualified roofer and builder to look at property to proceed with the mortgage (they would need report ) and that 2k will go into retention
2. If the seller is willing to knock off 2k then no paperwork needed.

Considering the seller wont budge and that the roofer and builder can come in and do a report and the vendor can take another 6 weeks (while we were looking to complete in 1 week or so) I take it I dont have any option but to pay the 2k myself out of my own pocket. (I am allright with that) - provided the sale goes quickly.

The lender has come up to me saying that they will still reduce the offer of mortgage and that I need to inform my solicitors.

Can you advise me regarding how this thing works. If I pay the 2k , and the mortgage lender reduces by 2k , why are the solicitors being involved.

cattie

It's because your solictitor needs to know how much deposit you are putting down, & this will now be 2k more if the vendor won't budge on price. Also he needs to know how much the actual mortgage will be as this alters the figures completely.

That's rough that your vendor won't at least meet you half way. Did you get a good deal on the property as he isn't willing to negotiate?

rammster

Yep , I think I bagged a good deal. Where I live properties don't last for >1 day (if the price is right). I got a 4% reduction over the asking price. And I am on +/- 5k range on houseprices website. So couldnt really have gone wrong there.


Anyways the way this will happen is the following.
1. I will advice my vendor to reduce the mortgage amount.
2. I will advice my solicitors that this was happening.

When Should i involve the EA in all this?

Can anyone help please !!!

rammster

Is there anybody who can help me please.

Romani_Ite_Domum

Obviously the valuer for the mortgage company doesn't think you are getting a good deal. I assume that you have a small deposit and lenders are starting to tighten up on lending due to uncertainty in the housing market.

Have you asked the lender if you can buy Mortgage Indemnity Insurance to cover the extra £2K?

If it was me, I would stick to my guns and make the £2K less my final offer.

rammster

It is not a question of me getting a good deal or not . The surveyer has been and said that the price is in line with other properties that went around me.
The survey revealed 2-3 items on a 1920s property , like fitting a new electric box. And the knee jerk response from lender is to get reports for everything. Had I just gone for a standard valuation , this sort of trouble would have never come my way. The more you arm the money managers with more and more information the more they make your life a misery. I went for a full structural survey so that it will put my mind at rest, obviously what I didn't consider was that the jobsworth managers will also get a copy of the report. I am sure that if I were to put this back on the market I will make 8k profit. I am not the type who invests blindly.

cattie

Let the ea know as soon as possible that the financial stucture of the purchase has changed.