Mortgage conditions - fire wall

Shortypie89

I am attempting to buy a flat in a converted double fronted house. The valuation has come back and the mortgage provider has asked for £5000 in retention because there is no fire wall in the loft.

The seller has refused to give me any reduction on the asking price and I don't have the extra money as practically all of my savings are going on the deposit (I am a first time buyer).

I am wondering whether it would be possible to get the firewall installed, at a cheaper cost and if this would be the best option?

I'd appreciate any advice, because I'm a bit confused and the estate agent isn't being particularly helpful (neither are the surveyors who refuse to give me any info). When I asked whether I could build a firewall and not pay the £5000, the estate agent didn't seem to think this was possible, but my understand of a retention payment is that it's simply held until work is done to a house which makes it safe?

If I try to install a fire wall:

- Do I need permission from the neighbours and is this likely to be difficult? The property is leasehold, not freehold, so do I also need permission from the freeholder? There are 4 flats in the building.
- Do you think it's possible to do installing the firewall would be possible before exchange/completion to avoid having to pay the £5000?
- What is the likely price? I have spent a couple of hours googling and I am coming across answers ranging from £300 to £2400
- Are there any other considerations?

Many thanks!

Concerned :S

kingstreet

It's a suggested retention.

If you obtain a report/estimate for the work which is lower, forward it to the lender and the retention will be reduced, possibly even lifted.

Your mortgage broker/advisor should be helping you with this. The estate agent is the agent of the vendor and is not an impartial arbiter between the parties.

00ec25

Shortypie89 wrote: »

If I try to install a fire wall:

- Do I need permission from the neighbours and is this likely to be difficult?
it will be subject to the Party Wall Act so will need careful planning and notice periods to all relevant people
The property is leasehold, not freehold, so do I also need permission from the freeholder?
yes, the freeholder owns the building you intend to modify so of course you need their permission
- Do you think it's possible to do installing the firewall would be possible before exchange/completion to avoid having to pay the £5000?
who do you expect to pay for the work. The leaseholder has no right to do it and you have not spoken to the freeholder. I would at least try the latter and enquire of the freeholder whether their insurance company has ever commented on lack of a firewall. But at the end of the day the lender is the one calling the shots
- What is the likely price? I have spent a couple of hours googling and I am coming across answers ranging from £300 to £2400
how long is a piece of string. How much have you included for professional and council fees as well as building costs?

as above

Shortypie89

kingstreet wrote: »

It's a suggested retention.

If you obtain a report/estimate for the work which is lower, forward it to the lender and the retention will be reduced, possibly even lifted.

Your mortgage broker/advisor should be helping you with this. The estate agent is the agent of the vendor and is not an impartial arbiter between the parties.

Thank you. Unfortunately the mortgage broker is from the same office as the estate agent, and has, in my experience, been less helpful so far (when I wanted to know the results of the valuation and emailed the broker he didn't even get back to me but the estate agent did). I'll defintiely try speaking with him though

kingstreet

Yet another reason for avoiding many estate agency advisors.

Along with;-

often limited panel, not whole market
charge a fee and get higher commission from limiting panel lenders
sell expensive/poor conveyancing
tied to one insurer for insurance products.

eddddy

Shortypie89 wrote: »

Thank you. Unfortunately the mortgage broker is from the same office as the estate agent, and has, in my experience, been less helpful so far (when I wanted to know the results of the valuation and emailed the broker he didn't even get back to me but the estate agent did). I'll defintiely try speaking with him though

Hi Shortypie

Unfortunately, this is a good example of the conflict of interest that arises when you use a mortgage advisor linked to the EA you are buying through.


On the main question of the firewall. This is likely to take many months and lots of effort to sort out (as others have indicated). I suspect it may be a case of 'persuading' the freeholder to build a firewall - and if the freeholder doesn't want to, that could be a very difficult task.

Things are made worse because you have a mortgage advisor who is 'not on your side', and a surveyor who wont talk to you (presumably because his client is the lender, not you).

If you want to proceed with this property, I think you need to get advice from a professional who is 'on your side'. i.e. instruct your own RICS surveyor.

But this will add to your costs - which you may lose, if you can't reach ultimately reach an agreement with the vendor.