Survey Question/Conflict...

paul87

Hi

My partner and I are in the process of buying a house and had the lender's valuation survey come back and say that they are happy with the house and value it at the price we offered (£250k). However, there were a few recommendations, including getting a surveyor to check the removed chimney stack was supported.
With that in mind we got an extra building survey carried out to verify all of this.
The results didn't make for good reading....

The surveyor phoned me after the survey was carried out and was adamant that we walk away from the house. Amongst his findings was that the chimney wasn't supported and only the roof was holding it up, which had caused a crack in the rear wall. The extension on the rear, which is now the kitchen, was not up to building standards with only 10mm walls. In his words, 'it was probably put up by uncle Frank on a Saturday afternoon...'. He believes that all of the house alterations have either been carried out by someone who doesn't know what they are doing or a cowboy builder. Just to make the house safe, he belives we are looking in the region of over £60k and wouldn't pay any more than £190k, although he wouldn't touch it even than.
Since the house is so unsafe he doesn't believe the house would be insurable or mortgageable. The thing is though, the bank have confirmed the mortgage without any conditions, only recommendations which seems strange...

We are in the process of pulling out of the purchase, but I would like to get extra advice on is the following -
- Why is that the valuation and building survey can be so radically different and how the valuation wouldn't appear to have picked up on the (apparently) obvious issues and pass the mortgage?

- Are the estate agent/vendor in the wrong for selling such a house which is deemed by the surveyor to be unsafe? We were never made aware of any such problems from the advert or the viewings, with only 'modernisation' being needed for the home.

- Now that the estate agent/vendor are aware of these issues what are their positions in selling the house? Do they have to make it clear of the issues found, deem it unsafe and unsellable until the issues are addressed or can they keep selling it as it is?

Many thanks

kingstreet

A mortgage report and valuation is not a survey. It is designed only to indicate to the lender that the property is suitable security for the loan requested. As you saw in this case, any potential issue is flagged for a more detailed inspection at your expense/discretion.

The expression is "caveat emptor" which means the onus is on you to establish the condition of the property, hence you commission a survey. The EA probably knows nothing about this and is not required to do so.

I suspect unless you provide them with a copy of the surveyor's report which details the issues, the agent/vendor will simply tell prospective purchasers you were unable to get a mortgage on the property.

ClareTeaches

I haven't got answers for all your questions, but here are some ...

It's not so strange that your mortgage company has offered a mortgage (if it is unmortgageable), it's simply that the lender doesn't know about all the things your surveyor has uncovered. How would they? Their valuer is meant to ensure their investment is safe against the value of the property. Which brings me on to ...

The valuation is very, very basic; sometimes they just drive past and don't even go inside. So, again, it shouldn't be any surprise that the valuer didn't spot the issues that have come to light in the dull survey.

I don't know if your surveyor is exaggerating the extent of the issues and how much they'd cost to fix or if he's just covering his back or if he's just trying to prevent you making a very costly mistake. However, the shoddy nature of the work carried out would be setting off alarm bells for me - if that's the dodgy work I can see, what else is there that's not immediately obvious?

ETA - I was too slow typing and Kingstreet beat me to it!

paul87

Cheers for the answers guys, explains a lot.

We have now seen the report and it is very damning of the property, basically deeming it unsafe due to the structure changes and defects.

The EA/vendor are asking for a copy of the report but we are very reluctant due to us having paid out a big chunk of money to get the building survey done. Are we right to withhold it? Would it be wrong to ask that they contribute to the cost if they want a copy?

kingstreet

You can ask for payment, but you should check with the copyright owner, the surveyor, before you do so.