Retention question

ErolGirl

Hi

We just bought a house and before buying we had to do the usual surveys - damp, timber, roof, structural. We got recommendations back on the damp and roof surveys which totalled £7000 which then went against the house as a retention.

Since moving in to the house we got a second opinion on the damp and he has said we don't have any damp problem it's a condensation issue and we actually don't need to spend a penny we just need to improve ventilation and insulation.

I've removed the mouldy wallpaper and it confirmed that there is no damp problem at all our walls are fine!! Now I'm super annoyed cause we paid 200 for the damp survey and we had to borrow money from my mum to cover the retention! So my question is are we able to get the retention removed or something similar? I'm not 100% sure how it works! Or can we spend the money elsewhere in the house???

silvercar

You ask the lender what they require to remove the retention. Normally it is evidence that the work has been done, in this case it may be a report stating that the work is unnecessary. They then release the retention and you can repay your Mum.

ErolGirl

I did speak to the bank previously about it and they said we only get back what we spend? Because our mortgage amount is 7k less than what it should have been so the cash we put in goes against the house? I'm so confused...

ErolGirl

I just double checked our mortgage papers and our mortgage loan amount is 7k less due to us paying the extra 7k retention....

silvercar

Also confused.

They kept 7k back because they reckon the property needs 7k spending on it to reach full value. Once that has been spent, the house should be worth full value and they should release the retention.

However, in your case, there is no damp, so the property doesn't need money spending on it. I guess they are saying that you don't need the money. Its an odd one.

All you can do is go back to the lender and ask them to reconsider.