Mortgage conditional on DPC

JakeH

Hi all

Has this happened to anyone? Looking for some advice.

We're buying a house, valuation came back suggesting a timber specialist check. We did that and they recommended installing a DPC. Initially, the bank said they would be happy lend £485 instead of £490 since we didn't want to do any work to the property before moving in. Two days later they said this was a mistake and we need to get the work done before we get an offer.

Our broker has suggested the estate agent write a letter guaranteeing the work will be carried out between exchange and completion and that this may be accepted by the lender.

Our question is, has anyone else gone through that process? Did it work? What should the letter say? Our broker isn't being very helpful in contributing to the content of the letter so we're going to have to write it ourselves.

Any advice or suggestions?

Cheers
Jake

[Deleted User]

JakeH wrote: »

Our broker has suggested the estate agent write a letter guaranteeing the work will be carried out between exchange and completion and that this may be accepted by the lender.

What an absolute useless suggestion. Why would a lender take the word of someone who doesnt own the property?

If work is to be done between exchange and completion then it is agreed through solicitors as an undertaking. Even then the lender is not going to be happy to do it.

Even if you found a way to get this done after exchange and before completion, If it hasn't been done to an acceptable standard then the lender may not release the funds. Silly risk to take as the completion date becomes closer and closer and you have no way to pay for the house.

If you really want to buy the house just try a new lender. Last time I went through this and got it on the 3rd lender. First one declined it on damp, 2nd one had full retention, 3rd one offered no issues

Davesnave

You haven't told us what sort of house it is and why it needs a DPC.


There are plenty of firms out there willing to give older houses a 'free' inspection followed by a full chemical 'solution' to problems of damp, but the problems are usually only there because someone else has done something inappropriate in the past. They often return after the guarantee runs out.

Be sure you know what you're getting into, that's all.

JakeH

Thanks, both. It's a mid-1800s Victorian terrace. The house is structurally sound, just very unloved and needs modernising. The timber specialist suggested injecting in a DPC but there isn't any sign of serious damp problems anywhere in the property.

[Deleted User]

if its mid 1800s i would be very very careful in bringing chemicals in to the mix. Its stood for nearly 200 years so far without them. Find out why its damp and fix the source.

If it doesnt appear damp and there are no obvious signs around the hosue I would maybe just find a new lender and deal with it if it is a problem once you are in. Maybe it will present itself over the winter

FreeBear

Victorian era property - Quite possible they used slate or a course of engineering bricks as a DPC. Neither will "fail" unless physically damaged or bridged by external soil levels. You've had the free survey from a specialist [STRIKE]surveyor[/STRIKE] salesman, now go and find yourself a proper surveyor with experience of Victorian buildings (steer clear of any with links to the PCA). You will have to pay for the survey, and I'll bet that it comes back saying "no chemical treatments required".