Property reservation fee

stevowmt

Hello,

I am being asked to pay a 2k reservation deposit in order to stop me pulling out of my prospective house purchase and also to stop me being outbid by another buyer.

I am happy to pay this, but want some clauses inserted. I was thinking about inserting the following. Do you think they'll be possible, or is there anything else I should include?

1. We get the reservation fee back in full if the property fails its mortgage valuation

2. We get the reservation fee back in full if any structural defects are found in any survey

3. We get the reservation fee back in full if the underwriter declines our mortgage

4. We get the reservation fee back in full if either my partner or I fall seriously ill or get made redundant

Thanks

Grenage

You can certainly ask, but I can't see a house building agreeing to those clauses.

Marvel1

Out of them to me only 1 and 2 appear ok.

stevowmt

Typically, how long does it take for an underwriter to approve or reject a mortgage?

stevowmt

Also, would it be possible to put something like 'Get half the reservation fee back if the underwriter declines our mortgage'?

lee111s

No, you should know how much you're able to borrow before reserving a house.

TrickyDicky101

Is this a new build house? If not, tell the vendor you won't be doing this. Nobody else does so why should you?