Should a mortgage be based on current condition?

easygoinghoney

We are in the process of buying a house and Valuer has valued it at purchase price with £10k retention because he wanted a damp/timber report, an electrics report and also noted some disrepair to roof and directed that a competent roofer should be instructed to undertake repairs.

We have had electrics and Damp/timber reports which have been accepted and some minor work came up which has been rectified.

The vendors instructed a roofer who noted that there was some disrepair around a sky light window and has replaced the window with a velux window. He provided a handwritten invoice for that work which was provided to the Lender.

The Lender then emailed that the roofing report was inadequate because it wasn't detailed and was handwritten (bearing in mind a report wad not requested on the valuation report). It was further suggested by telephone that the Lender would not accept the handwritten quote because he was clearly not a professional outfit as the report was not typed and it was not detailed. The roofer prepared a handwritten report which again confirmed the work done and that the roof is in a fair condition with no slipped or missing tiles. The roofer has said verbally that there isn't anything wrong with the roof.

Now the Lender is saying it wants another report from a second roofer because the report doesn't address the Valuers concerns whose view now (which was not indicated on the report) is that "the roof is original and shows signs of ageing with the concern that in the next 5 years it may be possible to continue with short term repairs however it will eventually require re-roofing, the cost of which will be substantial given the height and nature of the roof. The retention should remain pending receipt of the roof report". The Lender wants a second opinion and costing.

My understanding is that the Lender now wants a costing for a new roof which the house doesn't currently require - neither the Lender or a roofer can predict the future and say when a house will need a new roof - it could be 5 years, it could just as easily be 10 or even 15 years.

Therefore it appears to me that the Lender wants us to get a hypothetical cost of a new roof for them to apply a retention to those possible future works.

Surely this cannot be right and the mortgage valuation should be based on the current condition?

Any help appreciated.
Thanks

sinizterguy

They are concerned that the current condition is very close to needing a new roof 'soon'.

It's their money. If they want you to stand on your head, naked, for a week for them to release it to you, then can require you to do this. If you don't like their conditions, go elsewhere.

amnblog

sinizterguy wrote: »

It's their money. If they want you to stand on your head, naked, for a week for them to release it to you, then can require you to do this. If you don't like their conditions, go elsewhere.

Unfortunately - this is just about the size of it.


To be fair, the newsagent could have handwritten a invoice for roofing work.


This is the vendor's problem - don't make it your own.

Mortgage_Mark_2

sinizterguy wrote: »

They are concerned that the current condition is very close to needing a new roof 'soon'.

It's their money. If they want you to stand on your head, naked, for a week for them to release it to you, then can require you to do this. If you don't like their conditions, go elsewhere.

I think you've misunderstood the 'Virgin' in Virgin Money...

JimmyTheWig

While I don't disagree with the above comments, I would imagine that a lender should also follow their own protocol, guidelines and precendents.
Is the OP's situation a common thing? [In which case I agree that the OP either needs to do what the mortgage company want, find a different mortgage company or pull out.]
Or does it sound like someone at the mortgage company has got the wrong end of the stick? [In which case it is probably worth the OP following this up with them to ensure the relevant people know the relevant facts.]

Thrugelmir

easygoinghoney wrote: »

Surely this cannot be right and the mortgage valuation should be based on the current condition?

The lender needs to ensure that the property offers sufficient security for the mortgage advance. The mortgage advance potentially has a 25 year term (or whatever period you borrow over). Finally the property is owned by the lender until you've paid the final penny off.

Thrugelmir

JimmyTheWig wrote: »

While I don't disagree with the above comments, I would imagine that a lender should also follow their own protocol, guidelines and precendents.
Is the OP's situation a common thing? [In which case I agree that the OP either needs to do what the mortgage company want, find a different mortgage company or pull out.]
Or does it sound like someone at the mortgage company has got the wrong end of the stick? [In which case it is probably worth the OP following this up with them to ensure the relevant people know the relevant facts.]

What's required is an independent report prepared by someone independent of the vendor.

easygoinghoney

Thrugelmir wrote: »

What's required is an independent report prepared by someone independent of the vendor.

This was done but the Lender won't accept it because they have suggested he's a cowboy, basically, because he provided a handwritten invoice and not a report ( he wasn't advised that a report was required but acted as directedbin the valuation report).

In my experience it is not unusual for smaller contractors to provide written as opposed to typed invoices.

I'm just now sure what recourses have and whether we will just have to suck it up and pay again for another report for the lender to try and keep a retention for works which may be required in the future (which will obviously be done as and when required).

easygoinghoney

easygoinghoney wrote: »

This was done but the Lender won't accept it because they have suggested he's a cowboy, basically, because he provided a handwritten invoice and not a report ( he wasn't advised that a report was required but acted as directedbin the valuation report).

In my experience it is not unusual for smaller contractors to provide written as opposed to typed invoices.

I'm just now sure what recourse we have and whether we will just have to suck it up and pay again for another report for the lender to try and keep a retention for works which may be required in the future (which will obviously be done as and when required).

Its potentially libellous, interestingly, the Lender only calls him a cowboy and an unprofessional outfit on the phone, not in correspondence.

easygoinghoney

I should also add the handwritten invoice and subsequent brief report were both on company headed paper.