Retained Mortgage Offer

Chrisw0410

I'm in the process of buying my 1st house with my fianc! and have had a retained mortgage offer based on what 2 independent surveyors have told us is an inaccurate report from a damp contractor who were recommended to us by the mortgage broker. Based on this the mortgage company have made and offer of a retained mortgage for the value of the work which the damp company quoted. Our advisor has told us that getting a full independent survey won't make any difference to the offer but I wanted to know if this is correct practice. We feel like we are being forced into undertaking building work which isn't necessary and is vastly overpriced. Is there anything we can do?

Thanks

Thrugelmir

Chrisw0410 wrote: »

I'm in the process of buying my 1st house with my fianc! and have had a retained mortgage offer based on what 2 independent surveyors have told us is an inaccurate report from a damp contractor who were recommended to us by the mortgage broker. Based on this the mortgage company have made and offer of a retained mortgage for the value of the work which the damp company quoted. Our advisor has told us that getting a full independent survey won't make any difference to the offer but I wanted to know if this is correct practice. We feel like we are being forced into undertaking building work which isn't necessary and is vastly overpriced. Is there anything we can do?

Thanks

Has the mortgage company requested that certain works be done?

kingstreet

First job is not to get timber & damp reports from firms who fit damp courses and do timber treatment. That's putting the rats in charge of the cheese store.

Best bet would be to get an independent timber & damp surveyor to report. The cost is about £200 but could end up a lot cheaper than the "free" report you get from a contractor which ends up with an estimate for £000s.

Here is a good place to look;-

http://www.independentdampsurveyors.co.uk/

If you are asking if it's a good idea to have an extended inspection by a chartered surveyor, the answer is no. Asking another GP for an opinion when you need another specialist's report would be pointless.

Typically, "damp" is caused by leaky rainwater goods, soil bridging damp course, leaky chimney flashing etc. Only the specialist damp surveyor you pay for is going to tell you that.

How such a report might be viewed now by lender and surveyor is anyone's guess following what I assume to be a contractor's estimate.

As things stand, you can either ask the vendor to get any required work done and continue to purchase at the same price as before, assuming the purchase price and the post-repaired valuation are the same.

Alternatively, you can ask the vendor to reduce the price and have the work carried out yourself. You can use any contractor, not just the one who has quoted so far. You would need to put extra savings in to bridge the retention so you can complete, claiming the retained funds after the work is done.