first time buyer purchasing from a mortgagee in posession

star24.7

Hi we are in the process of buying a property, we were told when we submtted our offer that it was a corporate sale and we had to complete within 28 days. We naively assumed that this was because it had been empty for about 6 months.

Yesterday we noticed on the EA's website that they are advertising our offer. we contacted our solicitor who has advised us that it was a mortgagee sale (she didn't find out until yesterday either) that the mortgagee has a duty to get the best offer and has to do this. As the sale had to be done quickly we instructed the solicitor/survey etc at the same time. Unfortunately we received the results of the survey yesterday and there is quite a bit of damp work needing doing, c£3,000. When we were looking round the EA told us to make the best offer we can and when the survey comes through reduce it. Can you still do this if it is a mortgagee sale? Also how does it affect the advert of our offer? We are worried, we feel we have been taken advantage of by the EA as we wouldn't have offered as much on the property if we knew that we couldn't reduce it by the amount of the damp work. Unfortunately as we were told we had to complete so quickly we have handed our notice in on our rented property, so if the sale doesn't go through we would be stuck with nowhere to live.

My query is this, should we reduce our offer as suggested by the EA or do we accept that we have been stung paying a higher price and for the damp work?

kingstreet

Presumably, the chartered surveyor has said there's a damp problem and estimated the cost to repair it, £3,000. You've heard from the GP, now you need a specialist!

Chances are, there was a high moisture meter reading and this can be for a number of reasons unrelated to damp. Leaky rainwater goods, soil bridging damp course as it's too high against the wall, chimney flashing moved etc.

http://independentdampsurveyors.co.uk/

Get an independent specialist to report on the issue and don't get a firm which installs damp courses as you can then pretty much guarantee a new damp course will be required. A "free" report is often anything but!

If the report indicates a lower cost fix, the surveyor employed by the lender will reduce any retention, so you might have less of a reduction to negotiate, which incidentally you can.

Did you get any advice from anyone on mortgages and homebuying, or did you go direct to a lender?

star24.7

Thanks for your help, the cost is from a damp and timber specialist. We instructed him at the same time as the surveyor, as there was obvious damp on the walls we were told to assume a damp report would be a condition of the valuation.

We also instructed an independent mortgage broker, I thought it would be easier than chasing the lenders ourselves as we needed everything done so quickly.

kingstreet

You paid for an independent T&D surveyor's report, or you had a "free" report from a timber and damp contractor who is paid by installing DPCs and doing timber treatment?

If you used a broker, your broker should be advising you on these issues, you shouldn't need to ask strangers on the internet.

You have specific issues requiring specific advice beyond the scope of somewhere like here.

G_M

star24.7 wrote: »

the cost is from a damp and timber specialist. We instructed him at the same time as the surveyor, .

Independant? Or a company specialising in installing damp treatments? If the latter, their free 'report' was written by a salesman......

Can you still do this if it is a mortgagee sale? Also how does it affect the advert of our offer?

You can withdraw, or reduce, or increase, your offer at any time up to Exchange of Contracts. The fact its a repo makes no difference. The bank may/may nor re-advertise the new offer, but probably not as hat delays the sale and they want

a) best price but
b) get shot of the property fast

But speed matters as another buyer can appear at any time.