Bad survey, renegotiate on price - would we get the cash?

ri17

As it says really, I know we'd need to speak to our mortgage company but just wondered if people knew the answer.

If money was knocked off the price as the survey is terrible (our mortgage is approved and offer received for agreed selling price) would we see this money to use as repairs or would our mortgage just be a lower amount?

We are going over and over what we want to do but there is no point trying to renegotiate the price if we don't get the cash we've negotiated off as we have no money for repairs and would not proceed without knowing they were getting done. Thanks

kingstreet

As your borrowing is based on the lower of valuation or purchase price, you don't get to borrow money to do repairs.

If you have the scope to put down a smaller deposit and go for a higher loan to value, that may be your best bet.

Alternatively, get the vendor to do the repairs and leave the purchase price as it is.

ri17

Thanks. So all these people that get x amount knocked off from a bad survey just save for repairs in future?
I thought maybe if we got 10k for example knocked off due to the repairs we'd still get the 10 k more mortgage as that's what the offer is so we could do the repairs. Wishful thinking on our part then

ri17

Thanks. So all these people that get x amount knocked off from a bad survey just save for repairs in future?
I thought maybe if we got 10k for example knocked off due to the repairs we'd still get the 10 k more mortgage as that's what the offer is so we could do the repairs. Wishful thinking on our part then looks like we'll have to pull out

Angie_B

Or they keep the same mortgage value but take a higher LTV by keeping money back from their deposit in order to do the repairs. I realise this is not really an option if your LTV is already at 90% but if you have say a 30% deposit, you can put down 25% instead and keep the extra 5% for renovations.

Otherwise yes, you just have to save and do the repairs as and when you can afford them.

ri17

Thanks we'd only have 2k if we changed to 90% ltv so its not an option as that wouldn't touch the repairs x