Nationwide Valuation - What does this mean?

hoiyeeanita

We are FTB, just received a valuation update with Nationwide but we're not entirely sure what the following means. Our mortgage adviser has gone home for the day and we're overthinking things.

Thanks in advanced!

I attempted to call you regarding the above mortgage application, we are now in receipt of the valuation report and the property has been valued at £0 (with a retention of £190,346 regarding which the valuer has provided the following comments:

“The property could be reconsidered if a structural report is produced from an appropriately qualified engineer/surveyor on behalf of the purchaser. This report to be based on a detailed investigation of the structure which confirms stability or recommends remedial work acceptable to the Society. In the latter case, the applicant must confirm recommendations will be carried out in full and that the work will be professionally supervised.

In order to proceed with the application, the applicant will need to choose from the following options:
1. Carry out the requested reports/recommendations.
2. Proceed with the retention as a condition of the mortgage and we will release £0 on completion.
3. Application to be closed

letitbe90

I took it to mean they have a concern about the structure of property and hence valued it at £0 (which effectively means you won't get a mortage) without some work done.

By them suggesting you take a report, they envisage you will be provided with recommendations of work to be carried out - of which will need to be carried out for you to get a mortgage (in effect, it to no longer be valued at £0).

Read more here: https://www.gocompare.com/mortgages/retentions/

Usually retentions are not for the full value - which indicates they see some serious issue potentialyl?

ReadingTim

Essentially you need a full structural survey done, and if that survey says the place needs work, you have to promise to get that work done, otherwise the Nationwide won't lend you a penny.

HampshireH

How much does the retention value differ to the offer you have made?

Are you aware of any structural issues with the property?

Goodluck with the report. Fingers crossed it only suggests minor works

hoiyeeanita

Thanks all for your quick replies, we!!!8217;ve now properly read through the information and realise that it was outlined towards the end.

re. HampshireH our offer was around £210k (asking price £200k)

AdrianC

hoiyeeanita wrote: »

we are now in receipt of the valuation report and the property has been valued at £0

As it sits now, they will not lend 1p on a mortgage with that house as security... They dislike it that badly. The surveyor was probably running to the van to fetch his hard hat...

But...

(with a retention of £190,346 regarding which the valuer has provided the following comments:

In order to proceed with the application, the applicant will need to choose from the following options:
1. Carry out the requested reports/recommendations.

...and they'll reconsider.

2. Proceed with the retention as a condition of the mortgage and we will release £0 on completion.

Go ahead as-is, borrow £0 now, but when you do they work, they'll lend you £190k.

Obviously, you're not going to be buying the place then paying for the work without borrowing the money, so this is a bit of a non-option...

3. Application to be closed

Thanks, bye.

hoiyeeanita wrote: »

our offer was around £210k (asking price £200k)

So they think you're a hopeless optimist anyway, since they'll only lend £190k after the work's been done...

kingstreet

The structural inspection report may result in nothing being needed and then the retention will be lifted.

Alternatively, if work is required the only way this can be done is for;-

you to trust the vendor to get it done with the purchase continuing at the agreed price once it's completed

or

you pay for any work to be done between exchange and completion with the purchase proceeding at a lower price to reflect the costs.

Neither is a particularly attractive option, so you may feel you wish to reconsider your decision to purchase.

A structural engineer's report may be a cheaper option than a RICS survey;-

https://www.findanengineer.com/

Wobblydeb

Bear in mind that the valuation is likely to have been done by a surveyor - which suggests they have spotted something which gives them grave concerns about the property.

It can be difficult to get additional information from a bank valuation, but you might be able to dig out their contact details to ask what worried them.

hoiyeeanita

Thank you all so much for the incredibly helpful replies! We will walk away..

Back to square one :search:

kinger101

hoiyeeanita wrote: »

Thank you all so much for the incredibly helpful replies! We will walk away..

Back to square one :search:

Probably the right choice. I'd have ran.

Sheep

You cannot have liked the house that much if you do not feel it is worth paying a few hundred pound to fimd out if there actually anything wromg with the property before making a decision.

I had a client 2 months ago and the mortgsge valuation came back the same. They paid around £240 for a structural engineers report. They took a picture of every crack in the house and measured it before referring to stamdard guidelines aroumd the length of the crack and that it means.

To cut to the chase there wasnt a thing wrong with the property and the retention wss removed 2 days later.

The mortgage valuer is covering his behind!