Retention Help!! (SO Mortgage)

cscottie86

I am a first time buyer and have had an offer accepted on a shared ownership house (50%) and the purchase price matches that of the lenders (Abbey) surveyor's current valuation.

To outline, the house's purchase price, at 1000% is £65k - therefore my 50% is £32.5k - the surveyor also valued the house at £65k, but outlined some repairs and maintenance works that the property needs approx. £5k and after this the house would be then worth £70k.

When putting in my offer and applying for my mortgage I knew the property need works doing and was relishing the project. However, my estate agents duped me into getting their contractors to provide some estimates, which unbeknown to me went straight to Abbey. The surveyor has now, on the back of these estimates recommended a retention of £6000 and have stated they are de-valuing the property to £64k - Abbey have now issued a new mortgage offer to this effect.

So now the property is worth just £1000 less than the 100% share purchase price (£64k not £65k), but Abbey is stating that they are retaining £6000 and not £1000 of my loan advance.

What can I do?

I believed that a retention was put in place when the property wasn't worth the purchase price? ie you offer a price for £100,000 property but the lender values it at £95000 because of works to be done - therefore have a £5000 retention....but this isn't the case for me??

I have tried to appeal but my mortgage advisor (linked to the estate agent) is not doing much, I am sure he cant be bothered and no-one at Abbey will speak to ME apparently I have to go back through my advisor. Also getting a loan/borrowing this amount of money is not an option. I just want to have my old offer (if needs be with £1000 retention). As the price I am purchasing the property at has been valued at the correct amount - I don't want to borrow against what it 'could' be worth.

In the meantime, the vendor wants to put the property back on the market.

Please any advice would be hugely appreciated.

Thanks in advance

chanz4

what needs doing to it, for defects now I would be worried as they cant be that old

cscottie86

Its an old terrace property - not a new build.


It currently single glazed timber famed windows to the front (just 2). damp proofing all 4 walls has been recommend (although the property has been empty for over a year) and approx. £1000 worth of work on cavity wall tiles and roof maintenance.