Mortgage offer

Vodkajill

Hi, has anyone else ever been told that remedial work, as recommended by surveyors reports, needs to be done on the home you are buying before a mortgage offer will be granted. Bearing in mind that the house is empty due to the previous occupier being deceased and you have'nt bought the house yet? 

Slithery

Yes, they have.

Falafels

Yes, it's known as a retention on the mortgage. Depending on how much you want the house, and how much the retention is - you may or may not want to proceed.

Whether or not the house is empty is irrelevant.

Vodkajill

Its not a retention, we have had that before for electrical work. This is before they give us any mortgage offer at all. 

Falafels

Vodkajill said:

Its not a retention, we have had that before for electrical work. This is before they give us any mortgage offer at all. 

You mean, they'll retain the entire sum as a retention; yep, that's still a retention.

We had this scenario years ago. We politely told the lender to foxtrot oscar, and found someone else who would lend. However, there are some properties which are unmortgageable in anyone's book; if this is the case then you need to find another property.

Vodkajill

That is the option we are looking into, an alternative lender. A structural engineers survey has said that the property is sound and it is in one of the most desirable locations in the town where we live. 

Falafels

Vodkajill said:

That is the option we are looking into, an alternative lender. A structural engineers survey has said that the property is sound and it is in one of the most desirable locations in the town where we live. 

Are the works demanded by your existing lender concerned with the structure, or something else?

Vodkajill

Remedial works on the drains, putting in a plastic sleeve where there is roots encroaching and a stitch repair to one wall. All the cavity wall ties have been checked and are fine. 

Falafels

'Remedial works on the drains' could be anything from a few quid for an afternoon's work, to thousands. Have you had an estimate for the work? It's all down to how much you want the property, I guess.

To refer back to your original post, when we got a so-called mortgage offer whereby the entire sum would be subject to a retention, I showed the report to a friend-of-a-friend who was an estate agent/surveyor. He laughed his socks off. He put us in touch with a mate of his who was a mortgage broker. He too laughed his socks off. Then he put us in touch with another lender, who lent us the entire amount with no retention at all. 

Vodkajill

We know it will probably cost about 2 grand. Agree with you though, seems ridiculous. We will wait and see what our broker comes back with. Thanks.

Falafels

Vodkajill said:

We know it will probably cost about 2 grand. Agree with you though, seems ridiculous. We will wait and see what our broker comes back with. Thanks.

Good luck!