Will my lender accept my vendors building insurance structural engineers letter!

qad007

I am purchasing a property via auction. My lender valued the property at £0 due to potential structural movement and noted the removal of load bearing walls, pending further investigation by a chartered building surveyor or structural engineer. I wasn't willing to foot the bill for this, and therefore the vendor contacting her building insurance company who visited the property and provided a 1 page letter stating the following:
As I advised at the time of the inspection, subsidence damage typically takes the form of cracking that extends from ground level passing diagonally through door/window openings, is tapered becoming wider as it rises up the building and is present in the same locations externally and internally.  The cracking that is present to the building doesn’t exhibit these characteristics to indicate that it is associated with foundation movement/subsidence.  My opinions on the causes of the various cracks are as follows;
1. The external cracking that steps up above the kitchen window at the rear of the house is due to deflection of the window frame off which the wall is supported in the absence of a lintel.
2. The internal cracks above the door openings internally are generally uniform in width which is indicative of cracking that has been caused by thermal expansion/contraction.
I am not completely convinced by this report or if I can even call it a report. I seriously dont want my lender to accept this letter from a registered structural engineer, as I believe it is not a conclusive report. Would my lender accept this, or ask for a full structural report?  Has anyone else had the same issues, any advise would be appreciated. 

Slithery

Has the auction happened yet? What sort of auction - contractual or the dreaded 'modern method'?

qad007

Its the dreaded modern method of auction

greatcrested

Walk away.

(but as for your Q, I doubt your lender will accept anything coming from the seller)

AdrianC

qad007 said:

I am purchasing a property via auction.

Real auction, or "modern method"?
If real, has it actually happened yet?

My lender valued the property at £0

Then they simply aren't willing to lend against it.

You need a different lender... or a different property.

...due to potential structural movement and noted the removal of load bearing walls, pending further investigation by a chartered building surveyor or structural engineer.

Now we know why it's not just being sold "straight".

I wasn't willing to foot the bill for this, and therefore the vendor contacting her building insurance company who visited the property and provided a 1 page letter stating the following:
As I advised at the time of the inspection, subsidence damage typically takes the form of cracking that extends from ground level passing diagonally through door/window openings, is tapered becoming wider as it rises up the building and is present in the same locations externally and internally.  The cracking that is present to the building doesn’t exhibit these characteristics to indicate that it is associated with foundation movement/subsidence.  My opinions on the causes of the various cracks are as follows;
1. The external cracking that steps up above the kitchen window at the rear of the house is due to deflection of the window frame off which the wall is supported in the absence of a lintel.
2. The internal cracks above the door openings internally are generally uniform in width which is indicative of cracking that has been caused by thermal expansion/contraction.
I am not completely convinced by this report or if I can even call it a report.

It's from the vendor. Not that they have any vested interest in downplaying anything... Oh, no. Heaven forfend.

I seriously dont want my lender to accept this letter from a registered structural engineer, as I believe it is not a conclusive report. Would my lender accept this, or ask for a full structural report?  Has anyone else had the same issues, any advise would be appreciated.

Your putative lender has already said "We want nothing to do with this property".
The chances of the vendor convincing them that they really aren't trying to flog a pup are... not high.

qad007

Is there anyway I can speak with the lender or valuer to give them my opinions? I have gone through a broker but I feel he is trying to push this through for his own gain

Slithery

qad007 said:

Is there anyway I can speak with the lender or valuer to give them my opinions?

Even if it was possible it wouldn't make they slightest bit of difference, they don't care what your opinion is. You have 3 options here...

Either pay for a structural engineers report, find a different lender, or pull out of the purchase.

qad007

Would the lender accept the vendors building insurance structural engineers letter? if they wont then I can pull out the deal otherwise I am tied into due to auction t&cs

davidmcn

At the very least I'd expect they'd need it to be re-addressed to them. They (and you) can't rely on something addressed to the vendor.

qad007

I was told the structural engineers response is unbiased. However, he has failed to address the safety of the removal of load bearing walls? surely the mortgage valuer cant accept that or can they?

kingstreet

If he requests it, the surveyor who carries out the mortgage report and valuation for the lender will require a structural engineer's report in full which deals with the specific issues he (the surveyor) brings up in his report he asks the structural engineer to comment on. So no, a non-specific third party letter is unlikely to be accepted.