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Mortgage retention
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Posts: 1 Newbie
After some advice on above..
Offer accepted on property. Mortage value report values property at 20k below offer price. As such have placed a 20 k retention. There are a few vague points in required works damp, roof, ext render etc. we have money to cover the 20k. Retention is for 6 months. Am I right in thinking that if we do not claim back this retention in six months this additional 20k is just like an additional 20k deposit? Ie we wont loose anything but Mortage is 20k smaller than initially. Property will be a refurb project and forecasted by estate agent forth done 70-100k more than purchase price once complete.
Offer accepted on property. Mortage value report values property at 20k below offer price. As such have placed a 20 k retention. There are a few vague points in required works damp, roof, ext render etc. we have money to cover the 20k. Retention is for 6 months. Am I right in thinking that if we do not claim back this retention in six months this additional 20k is just like an additional 20k deposit? Ie we wont loose anything but Mortage is 20k smaller than initially. Property will be a refurb project and forecasted by estate agent forth done 70-100k more than purchase price once complete.
0
Comments
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Your thinking is correct. If you don't require the mortgage funds why borrow them?0
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