Mortgage Retention Question

Ukrainianstallion

Hi All,

My fiancee and i have just had an offer on a house accepted and we are having the valuation survey done later this week.

We have a bit of a concern that there may be a retention on the mortgage as a result of the surveyor's report.

The problem is that the house has the old style of wiring for the lights, hard to explain but it's the wiring that is like 2 twists of metal down to the light bulb.

I have been told that this could cause us a problem with the mortgage so my question is a) can anyone confirm if a valuation survey will check this and b) what are the current rules that lenders have regarding wiring?

Thanks in Advance

Dan

Debt_Free_Chick

Ukrainianstallion wrote: »

I have been told that this could cause us a problem with the mortgage so my question is a) can anyone confirm if a valuation survey will check this

It might make a vague comment like "the electrics appear to be outdated" but it will then go on to recommend a separate report from an electrical engineer. Electrics are "specialist" and a valuation is essentially carried out by a "jack of all trades" - so whilst the surveyor may have sufficient knowledge to spot something that's "not quite right" you will need an expert to give you chapter & verse. Suggest you start to look around for an electrical engineer now and get some quotes for a full inspection.

and b) what are the current rules that lenders have regarding wiring?

No hard & fast rules. Certainly, they can't force you to update the electrics but if they feel that the work is necessary to realise the full value of the property, they can "hold you to ransom" by putting a retention on the mortgage. Whatever they do, you should listen carefully to what the electrical engineer recommends.

HTH

HezzKay

Hi there,

we are just going through with the purchase of our house and have had a £7.5k retainer put on the mortgage. this is to do cavity wall ties, roof work and electrics. the electrics in the house are the same as you describe with the 2 wires twisting together. we have 6mnths to do the work then we get the money back from the mortgage lender.
it's a big hassle but if you are getting the work done anyway it's not too bad, so long as you have the difference available to give to the vendor.

opinions4u

Don't forget, you can use something negative in the valuation report to negotiate the price down too.

If it says "the house is worth £98k now, and £100k when the wiring is done" the house is currently worth £98k - negotiate the price down.

Alternatively get the sellers to do the work. But ensure any guarantees etc they obtain are transferable.

Premier_2

HezzKay wrote: »

Hi there,

we are just going through with the purchase of our house and have had a £7.5k retainer put on the mortgage. this is to do cavity wall ties, roof work and electrics. the electrics in the house are the same as you describe with the 2 wires twisting together. we have 6mnths to do the work then we get the money back from the mortgage lender.
it's a big hassle but if you are getting the work done anyway it's not too bad, so long as you have the difference available to give to the vendor.

You'd probably be better off asking this in a brand new thread rather than digging one up from 18 months ago! :eek: