Homebuyer Report

Keanu

I'm in the process of purchasing a property and have received the Homebuyers Report. This shows that they recommend the lender loaning the full mortgage amount but has a couple of urgent jobs. One is replacment of a patio window but the other is to replace an asbestos flu (on the basis this would be costly to action down the line).

My question is should I be looking to go back to the seller to agree to undergo the work recommended before continuing and if so should the solicitor/estate agent/me undergo the negotiation?

ono_no_komachi

If it were me I would get a couple of specialist firms to quote on the jobs, checking that they would be available to carry out the work in 3 - 4 months' time, so October-ish (estimating that if the sale proceeds as normal, you will have moved in by then.)

Depending on the quotes you could negotiate with the vendors to meet all, or (more likely) a proportion, of the cost via a reduction of the agreed sale price. The only time I have done this it was me, negotiating via the vendors' estate agent.

BUT (and I am sure this will be corrected if I am mistaken) if the lender has agreed to lend the full agreed sale price, this is viewed as the value without having had the work done, i.e. they are prepared to lend the full amount against the house in its current state. If it was worth less without having the work done they would have put a rentention on the mortgage and you would not have got the full amount until they have documented evidence that the work had been carried out.

The vendors may be influenced in whether to agree on a reduction depending on whether they had not much interest in the house (and might therefore be desperate to keep you as a buyer) and/or whether the agreed sale price was close to asking (if it wasn't they may already feel they have compromised enough).

Leighthal

I just booked one of these today.The mortgage company (Nationwide) has valued the property and agreed to lend me the money.However,my wife is the cautious type and has insisted on the Homebuyers Report.I really hope nothing major crops up,as I dont want to drag the process out too long.Wife is probably being the sensible one as usual.:heartsmil

Keanu

Ono No Komachi - thanks for the response, very helpful. Paying more than the asking price anyway (I know -amazing in todays market) so I think I should be looking at asking the questions.

Leighthal - Mine, by coincidence, is mortgage app is with Nationwide and I think that it's worth paying the extra bit, even though in my case it hasn't found the extra stuff I thought it might. got the piece of mind though - I think!!