Mortgage refused because of issues with house, need to correct them

[Deleted User]

Hi. We are buying a house from a family member and Nationwide have come back with some issue that prevent them offering a mortgage on it. They sent us an email:

Property is in very poor condition and appears to have serious damp issues and visible cracking. In order to be considered a damp timber report is required and all recommended works to be completed under a long-term guarantee. Furthermore, the property requires further investigation by a suitably qualified Structural Engineer/Chartered Building Surveyor as there is evidence of movement and cracking to the property which may be progressive. In present condition it is not suitable security.

The cracking is due to a tree which has now been killed off and the stump mostly removed, but the roots have caused the perimeter wall to crack. There are a few bricks in the house with small cracks.

The damp is because SSE botched a boiler replacement and some water came through the ceiling in the bathroom. It has been fixed now but the bathroom ceiling is a mess, didn't want to spend money sorting it because the whole bathroom needs refreshing.

Generally the house is in okay condition, being lived in. Needs a new kitchen and some new carpets etc but not falling apart.

I guess we need to get a survey done to confirm these issues, and possibly fix anything that comes up. Is that right? Is there anything we should know or do to increase the chances of them offering a mortgage?

MaryNB

If you get the further reports and the lender still refuses to lend, will the seller be willing to get the required work done? 

You obviously shouldn't organise or pay for it since there's no guarantee they will proceed with the sale before exchange and you shouldn't exchange without a mortgage offer in place. 

arrows123

Before the tree was killed off, was professional advice sort? Removing a tree can have the opposite effect of subsidence which can cause cracking. The opposite is heave which can also cause cracks. 

amnblog

They are looking to stop you buying a problem.

They won't lend until they are satisfied with a timber and damp report and structural engineers report.

Ask the Vendor to pay for these or you may fork out for them and then get refused on the lending once you see them.

They won't like it, but they are the ones with the problem property currently.

[Deleted User]

The vendor is a family member. If there is work to be done we would have to pay for it. We are happy to do that but are just worried that nationwide won't change their mind.

How much do these reports normally cost?

[Deleted User]

arrows123 said:

Before the tree was killed off, was professional advice sort? Removing a tree can have the opposite effect of subsidence which can cause cracking. The opposite is heave which can also cause cracks. 

No advice taken.

MaryNB

[Deleted User] said:

The vendor is a family member. If there is work to be done we would have to pay for it. We are happy to do that but are just worried that nationwide won't change their mind.

How much do these reports normally cost?

A few hundred each .

Do not be tempted to go to a company that will provide a free damp survey report. It's free because they want to sell you expensive remedies that can be completely inappropriate. Get a report from an independent surveyor who makes their money from surveys, not selling the solution.