Mortgage Lender not accepting

Steeleyg

FTB
We made an offer on a house on the 13th February 2019 which was accepted
As part of our Mortgage Application we paid extra for a home buyers survey as the house was slightly older we though it was beneficial
The report was done on the 26th February 2019, we then received a copy of the survey on 1st March 2019 which highlighted three areas of concern;
evidence of movement
evidence of damp
evidence of aged electric's

Low and behold, the mortgage lender came back on the 4th March 2019 and said the application will not be processed until the following has been done;
-Suitability for lending and any valuation is subject to a structural engineers report. The report should be addressed to both the lender and the applicant.
-Instruct a suitably qualified Property care Association registered damp proofing and timber specialist to inspect and report. Implement all recommendations with a long term insurance guarantee as appropriate.
-Instruct a NIC EIC registered electrician to inspect. Implement all recommendations for full compliance with current regulations.The property could be reconsidered if a structural report is produced from an appropriately qualified Engineer/Surveyor.

We went back into the estate agents to ask if the Sellers were prepared to arrange this work... thankfully the Sellers were prepared to arrange all reports to be done.

Structural report was done on the 13th March, damp/timber report was done on the 15th March and electricians report was done on the 21st March.
Structural report confirms no current movement, damp/timber report the Seller is still waiting for, and the electricians report is to be redone, following some work that will be done to modernise the electrics on the 1st April.

All this is brilliant and things are moving in the right direction, however now the Mortgage lender refused to accept the structural report because it is in the Sellers name, so we're having to pay an admin fee to transfer over into our name - not a problem understand that

But are we now going to have the same issue with the other two reports?

Has anyone else had these issues with a mortgage lender when buying a house?

I'm just concerned that this is taking so long considering we're first time buyers and the sellers are the sons of the deceased owner. - so no chain...? We're on week 6 from the offer being accepted, with the solicitors still not having received the searches and no mortgage offer in place
should i be concerned

ACG

According to your post, they only wanted the first report addressed to you and them.

This is one of those questions where you are asking the wrong people.

In fairness, going off your post, the lender were quite clear in what they wanted, so the hold up is because you/the vendor did not get what was needed in terms of who it is addressed to. The vendors seem accommodating and have invested time and money in you as a buyer so I would expect everything to be fine.

SmashedAvacado

you probably want the structural report to be in your name but also clearly stated to be for the benefit of any lender and any of your successors in title as otherwise when you come to sell you will need another one.

You need to do two things when buying a property -
1) be sure that your lender is happy, and
2) be sure that whatever has given the lender comfort will also work to give any buyer you may sell to in the future happy.

davidmcn

Steeleyg wrote: »

But are we now going to have the same issue with the other two reports?

Quite likely, and for the same reason i.e. neither you nor the lender can rely on a report which is addressed only to the vendor. Though structural stability is rather more fundamental than sorting out damp / electrics.

G_M

Steeleyg wrote: »

FTB
.....the application will not be processed until the following has been done;
-Suitability for lending and any valuation is subject to a structural engineers report. The report should be addressed to both the lender and the applicant.
-Instruct a suitably qualified Property care Association registered damp proofing and timber specialist to inspect and report. Implement all recommendations with a long term insurance guarantee as appropriate.
-Instruct a NIC EIC registered electrician to inspect. Implement all recommendations for full compliance .....


We went back into the estate agents to ask if the Sellers were prepared to arrange this work... thankfully the Sellers were prepared to arrange all reports to be done.
ooops! But that's not what the lender asked for!
.....
.... the Mortgage lender refused to accept the structural report because it is in the Sellers name, so we're having to pay an admin fee to transfer over into our name - not a problem understand that
OK


But are we now going to have the same issue with the other two reports?
Possibly. The lender will probably want the reports in their/your names for the same reasons as the structural engineer's report.

......

I'm just concerned that this is taking so long considering we're first time buyers and the sellers are the sons of the deceased owner. - so no chain...? We're on week 6 from the offer being accepted, with the solicitors still not having received the searches and no mortgage offer in place
should i be concerned

Week 6 is not that long.
Given the number of conditions imposed by the lender, plus yur failure to follow the lender's instructions, the timescale is not surprising.
No mortgage offer in place because...... you have not fulfilled the lender's requirements!
Searches become irrelevant - they'll be done and since the mortgage is still pending what's the hurry?
Probate sales often hit problems (though in this case they seem to be of your own making.....)