retention on mortgage - advice/thoughts please

AlexMac

Kimstar wrote: »

Hi all - this is my first time posting
There are three areas of concern following the valuation;

1. Obtain a report from a specialist contractor on the condition of wall ties in external cavity walls and carry out repairs as necessary under an insurance backed guarantee
2. PCA registered timber and damp contractors report. Undertake repairs under insurance backed guarantee (vendor did mention that she had a damp proof course done when she moved into the property and this was 3 yrs ago so still under guarantee. Not sure if this would count still or if a new one would be needed)
3. Overhaul all roofs including the flat felt roof, guttering, chimney stacks and flashings ensuring watertight seal

We have told our solicitor and he basically said sounds bad start thinking about pulling out. ...

Main questions while we wait for the quotes are:

1. Our solicitor said not to disclose the retention amount to estate agent. The agent we are using has a monopoly on pretty much all the properties in the area we want to buy. Would other people disclose?
2. If the surveys come back and say works needed are around the 1k mark would people go ahead or would the risk of costs piling up once work started put people off
3. Would the damp course that vendor had count and if we could prove that still in guarantee would nationwide be likely to accept that or do we need a new view
4. Should we start looking at other properties incl viewing so we have a back up plan or are we panicking too soon - this is more of a what would you do than expecting there to be a right answer
5. If roof says overhaul does that mean it def needs doing or could a survey from someone else say different and we dont need to go ahead?
Really appreciate any help or even just a dialogue with someone else who had similar experience. House buying can be a lonely business ...

Kim

I like your style Kim, and although you may have thought this all through by now, here's my two-penn'wth;

I was in a similar, but much worse position in that my bank agreed a mortgage but after valuation survey proposed a 100% retention (mad- yes?) pending independent roof, structual, timber/damp and tree surveys! They knew I was buying a wreck, which subsequently far more than doubled in value in 3 years after taking account of repair costs. Luckily I found a less picky lender with a less timid surveyor.

So re the original points and Qs:
I think your solicitor seems unnecessarily alarmist. If you like the house I wouldn't back off; after all, you got it at a fair price, can afford the work(?), which is fairly minimal, so you probably won't even now try to argue a grand off the price on the strenghth of the valuation and any estimates (which would be an option?). If the three issues, the wall-ties sound most serious, but as you say, less than £1k implies its not about to fall down (but get a builder or surveyor in sometime; I prefer a builder, but then I want someone to fix problems, not someone with professional indemnity to sue when it later goes wrong! Re the Q's:

"1. Our solicitor said not to disclose the retention amount ...Would other people?"
I can't see it makes a big difference but I'd defer til I decided if I was going to argue the price down based on estimates or quotes - i.e. keep your powder dry.

"2. If the surveys come back around the 1k mark would people go ahead ..." I'd go ahead as I say above. Any house over 60 years old will have something wrong with it. If cautious, lash out a few hundred quid on a structural survey (I wouldn't!)

"3. Would the damp course that vendor had count...?"
Yes, in my experience; and again, why's your solicitor so cynically dismissive? We has owned our flat 3 years but still got some 7-8 year old work re-done under the vendors original 25 year guarantee.
"... and if we could prove that still in guarantee would nationwide be likely to accept that or do we need a new view" Dunno? If the firm who did the work still exists it should be honoured. But I agree the solicitor's point that until you complete, it's the vendor's problem; although having identified the firm concerned you could just ring 'em up and take a view on how professional they sounded. Then decide whether to push your vendor to act, or take the marginal risk and sort it out after you buy. Many older buildings are a bit damp, and it could be a cautious valuer or even a bit the original damp-proofers didn't do (as with us; they fixed the bit they had done, but we paid a couple of hundred for a couple of metres which they hadn't even originally touched, so honour was satisfied,

"4. Should we start looking at other properties incl viewing so we have a back up plan or are we panicking too soon - this is more of a what would you do than expecting there to be a right answer"

Chill.

"5. If roof says overhaul does that mean it def needs doing or could a survey from someone else say different and we dont need to go ahead?"

Quite possibly- although any builder will want to find a tiny bit of dodgy flashing, the odd slipped slate, or cayion you that flat felt roofs only last 10-15ish years. Ask 'em if they need scaffolding which costs a few hundred. The work is probably de-minimus

Anyway - best wishes- let us know the outcome, but I bet it will be OK

GolfFoxtrot

Me and the OH recently had a 5k retention on our mortgage due to damp and electrical problems highlighted in the valuation which required more extensive surveys. The damp survey was free and of course they said we should get a new damp course along the back of the house however upon moving in we have discovered the real reasons for the damp
- raised ground levels at the rear of the house bridging the DPC
- broken guttering
- air bricks which have been cemented up

We're in the process of fixing these but as we won't be getting a new DPC can't claim the retention back from the mortgage company.

I wouldn't be put off by having to do some work or a retention to be honest. It's not too much work and provided you have proof it's easy to claim the retention back. Obviously the work may be larger than you initially thought but with buying any property I think you'll always discover something unexpected that needs fixing.

kimstar_2

Thanks for all the replies - really helps! We did go and view another property yesterday but it was awful and more expensive so definitely helped us to see this one still has potential. We will "chill" now till the surveys etc play out

Will post updates here as they come through and just try to be more patient/more optimistic than our solicitor. Will also try the suggestion to get a builder to offer second opinion. We do know a roofer so can ask him to take a look.

As for financing any work - yes we could but we had already got ahead of ourselves and planned on spending the money we have on other work e.g. opening kitchen up, french doors in dining room etc. Think reluctance is driven by the fact we wouldn't be able to 'see' this kind of work if done but appreciate is important stuff.

Thanks again

martindow

GolfFoxtrot wrote: »

We're in the process of fixing these but as we won't be getting a new DPC can't claim the retention back from the mortgage company. .

If you have the savings to cover the retention you just end up with a lower mortgage, so not being able to claim the retention is not really a problem. Really it's an advantage as you have the flexibility of how you deal with the problem or as in your case find that it is not the problem first envisaged.