Building survey to mortgage lender?

Eia14

Ok, it's a long one:
I have a mortgage decision in principle with Nationwide. Before proceeding with my full application, I decided to instruct an independent building survey on the property for which I had an accepted offer. The report came back with a number of severe damp issues under the floorboards, roof and kitchen walls, as well as repointing, bridging and gas/electricity/plumbing update (it is a Victorian terrace). Of course, the advise was to get specialist inspection and costing. However, In our verbal discussions, the surveyor was kind to suggested these could cost in the region of £15-£20k as a ballpark.

I have presented the key areas for which I would like further independent inspection and costing to the vendor in a letter. I did not make an alternate offer, but stated I would like the costs of further inspection and of remedy incorporated into a reduced final price. Of course, the vendor wishes to see the full report and is unwilling to reduce the price under any circumstances. As a qualified and experienced member of the construction industry ( I informally understand he is an architect) he is denying the issues are valid and sufficient to warrant a price reduction. He insists work has been undertaken which contradicts the survey findings. He also states he is confident that a mortgage valuation will agree with the offer price is correct (which was made with no awareness of these hidden defects).

The buildings survey is the only cost I have allowed myself to incur so far, and the only information I believe, and I am nervous with how to allow more to be spent, in case I need to pull out. I cannot afford the potential costs of remedy without a matched price reduction.
My question is with regards to how to proceed. Not only do I feel as if I am outweighed by the vendor, but I am curious as to the mortgage valuation: should I notify and share the buildings survey with the mortgage provider? Would this give me the clout I need to justify my reduction request? Would it put me at a disadvantage with getting my mortgage?

Also, if anyone can give step-by-step (for dummies/nervous people) guidance on how to proceed, to both move forward with confidence but keep costs to pay essential and minimal, in case of withdrawal, I would be very grateful.

Apologies for the long, multiple request

kingstreet

Pay for a specialist independent timber & damp surveyor to inspect, as chartered surveyor estimates and suggested causes of damp are often way off;-

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

You've had the GPs opinion, now you need a Consultant.

Do not get a "free" report from a firm which installs damp courses. If you do, don't be surprised when they say you need one.

Thrugelmir

Eia14 wrote: »

Of course, the vendor wishes to see the full report and is unwilling to reduce the price under any circumstances.

Cutting to the chase. You are willing to offer a maximum of £20k less than the property is being marketed for. This is what you should do. The vendor can either accept or decline the offer.

G_M

Sounds like the seller is going to be hard to persuade to drop his price. So either

* agree to pay the price asked, apply for mortgage and (assuming valuation = prchase price) buy the property
* make a reduced offer immediately. Pull out when it's rejected
* pay for independant specialist reports (NOT free sales reports by damp companies) & see what transpires
* pull out now and save spending any more

AdrianC

Eia14 wrote: »

I decided to instruct an independent building survey on the property for which I had an accepted offer. The report came back with a number of severe damp issues under the floorboards, roof and kitchen walls, as well as repointing, bridging and gas/electricity/plumbing update (it is a Victorian terrace). Of course, the advise was to get specialist inspection and costing. However, In our verbal discussions, the surveyor was kind to suggested these could cost in the region of £15-£20k as a ballpark.

And what has the surveyor given as a value for the property, relative to the agreed purchase price? This is the ONLY relevant figure in this context...

I have presented the key areas for which I would like further independent inspection and costing to the vendor in a letter. I did not make an alternate offer, but stated I would like the costs of further inspection and of remedy incorporated into a reduced final price. Of course, the vendor wishes to see the full report

Hardly unfair. You're saying "This survey says your house is knackered, I want to give you £20k less for it", why would he NOT want to see that on paper?

and is unwilling to reduce the price under any circumstances. As a qualified and experienced member of the construction industry ( I informally understand he is an architect) he is denying the issues are valid and sufficient to warrant a price reduction. He insists work has been undertaken which contradicts the survey findings.

He knows the property far, far better than the surveyor, of course - but is considerably less independent.

He also states he is confident that a mortgage valuation will agree with the offer price is correct (which was made with no awareness of these hidden defects).

And does it?

I cannot afford the potential costs of remedy without a matched price reduction.
My question is with regards to how to proceed. Not only do I feel as if I am outweighed by the vendor, but I am curious as to the mortgage valuation: should I notify and share the buildings survey with the mortgage provider? Would this give me the clout I need to justify my reduction request?

You're using your survey as justification - what does IT say about the value? The mortgage lender's valuation won't spend anywhere near as much time or care investigating the building, so could easily miss the issues that your surveyor has found.

Your way forward is simple...
If the survey down-values the property, hand the survey to the vendor. If he accepts the findings, then agree a reduction.
If he refuses to accept the findings, then you're either paying full whack or walking away.
If the survey doesn't down-value the property, then the surveyor thinks the asking price fair even considering the issues. Pay full whack or walk away.