Lender won't release mortgage until work carried out!

LadyGMadameToThee

Help! Very stressed FTB. Post Officmmortgage company have said today that they won't release ANY of the mortgage until 2k worth of work is carried out. What do we do? I thought they would place a retainer on it and we could renegotiate the price! Unfortunately, they won't lend at all. The issues aren't even major or structural, so we are shocked by this. Is it worth trying another lender?

ReadingTim

Tell the vendor that they need to carry out the work otherwise you can't buy the place, and neither can anyone else who needs a mortgage: it is their problem more than yours.

ProDave

What is this essential work? some things worry lenders a lot.

A previous house purchase the lender wanted to make a retention until I had done some work (rewire and damp issues) I pointed out I had kept enough money in reserve to do the repairs, but if they retained part of their loan, I would no longer have the money to do the repairs so I would not be able to proceed with the purchase. They had a re think and agreed there was no need for a retention.

hazyjo

Not sure I'd want the current vendors doing work. Surely that wouldn't be in my best interests? I'd much rather choose reputable workmen myself. Seems like a strange request. Can't you discuss a retention with them instead citing that exact reason, and try to negotiate a price reduction (if poss)?


Jx

kingstreet

Presumably this is a continuation of;-

https://forums.moneysavingexpert.com/discussion/5679685

martinsurrey

ReadingTim wrote: »

Tell the vendor that they need to carry out the work otherwise you can't buy the place, and neither can anyone else who needs a mortgage: it is their problem more than yours.

That is a very big leap!

Retention's are an art form and making such a bold claim is just wrong.

The post office might not want to lend on this house at 90% without the work being done but HSBC might be fine with it at 60%.

For such a small amount I think its more the OP's problem than the vendors tbh, £2200 is less than 10 days mats+labour, and anything that costs that little isn't too major.

LadyGMadameToThee

We are FTB and the house we're trying to purchase is already vacant & has been for some time. The work seems trivial for them to be demanding it be carried out before releasing ANY of the mortgage BUT we are asking for 95% mortgage. I think the seller has already had one sale fall through - and our mortgage broker seems to think that's these problems will not go away and other lenders will pick up on the,

eddddy

Based on your previous thread...

kingstreet wrote: »

Presumably this is a continuation of;-

https://forums.moneysavingexpert.com/discussion/5679685

... are you sure they are not saying it's 100% retention until you get a Damp and Timber report?

Then, once they have the Damp and Timber report, they will review. And perhaps the retention will then be zero or £1k or £2k or whatever.

LadyGMadameToThee

No, this is AFTER the damp & timber report (which we had carried out by an independent surveyor). The works are pretty minor (high humidity in attic so a couple of air bricks needed & concrete under bay window needs lowering b cause it's causing high moisture readings) - if we got other quotes I'm sure we could get it cheaper (my husband could do most of it himself) - but we're not going to do it on a house we don't own

browneyone

Our lender asked us to write a statement that basically made us 'promise' to have the damp work done within 3 months (quote was only £395) any way.

LadyGMadameToThee

We would happily do the work within 3 months of actually owning the house but at the moment we have no legal protection because it isn't our house