Problems found after formal mortgage offer

emgee88

Hi
We have been going through the process of buying a house for the past few months, we have everything in place: formal mortgage offer, deposit sent to solicitors etc, and we were planning on exchanging contracts this week.
When the solicitor requested the final checks and funds to be released from the mortgage lender, a problem has occurred.
Basically, during the final checks, the valuation has been carried out again and the mortgage lender's valuers (I believe this is 'Colleys') have noticed that the explanation the sellers have given regarding the loft space is incorrect (they have described it as having been 'boarded out and a loft ladder fitted', when in fact it has been plastered and painted as well.)
The mortgage lender then requested that we have a Structural Surveyor look at it.
The surveyor had a look yesterday and found that in order for the loft space to be opened up, the previous owner had cut 2-3 trusses. The surveyor therefore recommends that purlins be installed to regain the structural integrity of the roof.

As we are so far along in the process, can anybody give me some idea of what we could expect now this new information has come to light?
After doing a bit of research, I have found that mortgage lenders sometimes 'retain' the value of the repair until the issue has been rectified, but due to us already having signed the formal offer, could this cause us problems?

Apologies if this explanation is hard to follow, this is our first time buying a property so all of the details/jargon are completely new to us.

Thanks in advance!

eddddy

The lender may make a retention, or they may just make you sign an undertaking that you will get the work done within 6 months, or they they may completely withdraw the mortgage offer until it is done (or they may do nothing). I guess you need to wait to see what your lender says.

Many buyers would get quotes for the work and consider reducing their offer, in these circumstances. e.g. If it will cost £1,000 to get the work done, reduce your offer price by £1,000.

But that's up to you.

emgee88

Thank you for your reply, that gives us something to think about. Unfortunately due to the bank holiday we have to wait until tomorrow to begin proceedings!

Just wondering, with our formal offer already signed, would the mortgage lender need to re-issue the offer with the retention applied? Or is this normally just an agreement set prior to completion?

I have tried searching online for similar situations but all I can find is stories where people have had their retention applied prior to the formal offer.

Any info is greatly appreciated, thanks again!