House valued at the offer price but we then renegotiated - do I tell the lender?

TessaW_2

We had an offer accepted on a house we want to buy. The surveyor valued it at the offer price but there were some problems which showed up in the survey. Nonetheless the lender are happy to lend us that orinigal amount.

However, since the problems showed up on the survery, we have renegotiated the price in order to cover some of the costs of repairs etc.

My question is - do we need to tell the lender that we've renegotiated the price, or can we still borrow the original amount from them as it was valued at that amount?

We don't want to do anything dodgy but the cash would be good to make the repairs...

homer_j_3

your solicitor will probably inform them of the revised purchase price. I would speak to the estate agent and make sure that they keep the purchase price at the original agreed price but put the vendors will be gifting you the money to make these repairs.

[Deleted User]

You can still borrow the original amount and use the extra money for whatever you want. And I disagree with the above poster, you do not want to keep the purchase price at the original price, especially if you pay stamp duty on it. Your solicitor will send you a cheque back after completion.

homer_j_3

well when the lender will only take the value at the lower of valuation or purchase price then you may end up with no money for the repairs. Check with your EA and Solicitor as your EA may have already sent revised memorandums of sale.