Would you drop your offer price?

Housebuyer1983

We've had the survey back on the house we are buying. It has identified £10k worth of work to be done. Repointing the south side the house, drain chambers need fixing, lintel across a giant lounge patio door window, a ceiling patched up in the garage with added costs as it may be asbestos... Nothing we weren't expecting but the valuation came back at £800k and we offered £825,000 and the vendor also wants an extra £3,000 for a wood burner. The garden office, it also turns out there is a restrictive covenant preventing putting structures up on the land without written consent of the original builders. Wondering whether we should reduce the offer and if so how much? 

sienew

It's worth noting that if the house has asbestos that some lenders won't give you a mortgage or will hold some of the money back until you get it removed. 

As for offer, it all depends on what you think they'll accept. Best case is £790k (valuation minus work to be done). Worst case is they think they can get the full valuation and they put the house on the market again. Just got to gauge how much you want the house and how willing you are to potentially tell you were to stick your offer.

powerful_Rogue

sienew said:

It's worth noting that if the house has asbestos that some lenders won't give you a mortgage or will hold some of the money back until you get it removed. 

As for offer, it all depends on what you think they'll accept. Best case is £790k (valuation minus work to be done). Worst case is they think they can get the full valuation and they put the house on the market again. Just got to gauge how much you want the house and how willing you are to potentially tell you were to stick your offer.

What nonsense. Majority of houses built pre 1990's have asbestos in some form.

user1977

sienew said:

Best case is £790k (valuation minus work to be done).

The valuation is in its current condition, you don't get to double-dip by subtracting the cost of improvements you want to make.

I'd say £800k vs £825k is within normal valuation margin of error (£812.5k +/- 1.5%) - no harm in trying to lower it but I wouldn't get too upset if the answer is no.

The covenant is fairly standard stuff, I wouldn't say it affects value.

sienew

powerful_Rogue said:

sienew said:

It's worth noting that if the house has asbestos that some lenders won't give you a mortgage or will hold some of the money back until you get it removed. 

As for offer, it all depends on what you think they'll accept. Best case is £790k (valuation minus work to be done). Worst case is they think they can get the full valuation and they put the house on the market again. Just got to gauge how much you want the house and how willing you are to potentially tell you were to stick your offer.

What nonsense. Majority of houses built pre 1990's have asbestos in some form.

Not nonsense at all. Google it for MANY examples.

https://www.onlinemortgageadvisor.co.uk/property-types/asbestos-and-mortgages/

For some lenders, this can be a deal-breaker and their lending criteria will prevent them from providing a mortgage for property with asbestos.

The good news is that there are lenders that will consider mortgages for properties with asbestos and the expert brokers we work with know who they are and can help you get the best deal.

-----------------

If the mortgage valuation reports that asbestos is present and there is a recommendation for work to be carried about, some lenders will ask that the asbestos is removed before they agree to lending to you.

sienew

user1977 said:

sienew said:

Best case is £790k (valuation minus work to be done).

The valuation is in its current condition, you don't get to double-dip by subtracting the cost of improvements you want to make.

Just depends how cheeky you are and how desperate the seller is to sell. £790k is probably the lowest you can justify but the expectation should be that it ends up being haggled up to around the 800k figure.

powerful_Rogue

sienew said:

powerful_Rogue said:

sienew said:

It's worth noting that if the house has asbestos that some lenders won't give you a mortgage or will hold some of the money back until you get it removed. 

As for offer, it all depends on what you think they'll accept. Best case is £790k (valuation minus work to be done). Worst case is they think they can get the full valuation and they put the house on the market again. Just got to gauge how much you want the house and how willing you are to potentially tell you were to stick your offer.

What nonsense. Majority of houses built pre 1990's have asbestos in some form.

Not nonsense at all. Google it for MANY examples.

https://www.onlinemortgageadvisor.co.uk/property-types/asbestos-and-mortgages/

For some lenders, this can be a deal-breaker and their lending criteria will prevent them from providing a mortgage for property with asbestos.

The good news is that there are lenders that will consider mortgages for properties with asbestos and the expert brokers we work with know who they are and can help you get the best deal.

-----------------

If the mortgage valuation reports that asbestos is present and there is a recommendation for work to be carried about, some lenders will ask that the asbestos is removed before they agree to lending to you.

I've never seen a thread or heard of anyone having a mortgage refused because the house contained asbestos. That's even with the myriad of threads on here where a survey has highlighted asbestos.

Going by what you have posted, nearly all houses built 1990 would not be able to get a mortgage.

sienew

powerful_Rogue said:

sienew said:

powerful_Rogue said:

sienew said:

It's worth noting that if the house has asbestos that some lenders won't give you a mortgage or will hold some of the money back until you get it removed. 

As for offer, it all depends on what you think they'll accept. Best case is £790k (valuation minus work to be done). Worst case is they think they can get the full valuation and they put the house on the market again. Just got to gauge how much you want the house and how willing you are to potentially tell you were to stick your offer.

What nonsense. Majority of houses built pre 1990's have asbestos in some form.

Not nonsense at all. Google it for MANY examples.

https://www.onlinemortgageadvisor.co.uk/property-types/asbestos-and-mortgages/

For some lenders, this can be a deal-breaker and their lending criteria will prevent them from providing a mortgage for property with asbestos.

The good news is that there are lenders that will consider mortgages for properties with asbestos and the expert brokers we work with know who they are and can help you get the best deal.

-----------------

If the mortgage valuation reports that asbestos is present and there is a recommendation for work to be carried about, some lenders will ask that the asbestos is removed before they agree to lending to you.

I've never seen a thread or heard of anyone having a mortgage refused because the house contained asbestos. That's even with the myriad of threads on here where a survey has highlighted asbestos.

Going by what you have posted, nearly all houses built 1990 would not be able to get a mortgage.

It's not true that "nearly all houses built before 1990" have asbestos. Sure, some houses built had asbestos, especially in the 80's but the vast majority that did have had it removed. I also didn't state that they wouldn't be able to get a mortgage, just that it can be an issue with some lenders and they may hold some money back from the mortgage until it's removed.

user1977

sienew said:

powerful_Rogue said:

sienew said:

powerful_Rogue said:

sienew said:

It's worth noting that if the house has asbestos that some lenders won't give you a mortgage or will hold some of the money back until you get it removed. 

As for offer, it all depends on what you think they'll accept. Best case is £790k (valuation minus work to be done). Worst case is they think they can get the full valuation and they put the house on the market again. Just got to gauge how much you want the house and how willing you are to potentially tell you were to stick your offer.

What nonsense. Majority of houses built pre 1990's have asbestos in some form.

Not nonsense at all. Google it for MANY examples.

https://www.onlinemortgageadvisor.co.uk/property-types/asbestos-and-mortgages/

For some lenders, this can be a deal-breaker and their lending criteria will prevent them from providing a mortgage for property with asbestos.

The good news is that there are lenders that will consider mortgages for properties with asbestos and the expert brokers we work with know who they are and can help you get the best deal.

-----------------

If the mortgage valuation reports that asbestos is present and there is a recommendation for work to be carried about, some lenders will ask that the asbestos is removed before they agree to lending to you.

I've never seen a thread or heard of anyone having a mortgage refused because the house contained asbestos. That's even with the myriad of threads on here where a survey has highlighted asbestos.

Going by what you have posted, nearly all houses built 1990 would not be able to get a mortgage.

It's not true that "nearly all houses built before 1990" have asbestos. Sure, some houses built had asbestos, especially in the 80's but the vast majority that did have had it removed. I also didn't state that they wouldn't be able to get a mortgage, just that it can be an issue with some lenders and they may hold some money back from the mortgage until it's removed.

There are no lenders which insist on all asbestos being identified and removed. It's really only an issue if you've got e.g. damaged asbestos sheeting or loose-fill insulation - but something like a solid garage roof, or asbestos embedded in Artex or vinyl tiles, isn't going to be a showstopper.

powerful_Rogue

sienew said:

powerful_Rogue said:

sienew said:

powerful_Rogue said:

sienew said:

It's worth noting that if the house has asbestos that some lenders won't give you a mortgage or will hold some of the money back until you get it removed. 

As for offer, it all depends on what you think they'll accept. Best case is £790k (valuation minus work to be done). Worst case is they think they can get the full valuation and they put the house on the market again. Just got to gauge how much you want the house and how willing you are to potentially tell you were to stick your offer.

What nonsense. Majority of houses built pre 1990's have asbestos in some form.

Not nonsense at all. Google it for MANY examples.

https://www.onlinemortgageadvisor.co.uk/property-types/asbestos-and-mortgages/

For some lenders, this can be a deal-breaker and their lending criteria will prevent them from providing a mortgage for property with asbestos.

The good news is that there are lenders that will consider mortgages for properties with asbestos and the expert brokers we work with know who they are and can help you get the best deal.

-----------------

If the mortgage valuation reports that asbestos is present and there is a recommendation for work to be carried about, some lenders will ask that the asbestos is removed before they agree to lending to you.

I've never seen a thread or heard of anyone having a mortgage refused because the house contained asbestos. That's even with the myriad of threads on here where a survey has highlighted asbestos.

Going by what you have posted, nearly all houses built 1990 would not be able to get a mortgage.

It's not true that "nearly all houses built before 1990" have asbestos. Sure, some houses built had asbestos, especially in the 80's but the vast majority that did have had it removed. I also didn't state that they wouldn't be able to get a mortgage, just that it can be an issue with some lenders and they may hold some money back from the mortgage until it's removed.

Again, absolute nonsense.

People don't just get asbestos removed when it's doing no harm, let alone the 'vast majority'. Lots of properties still have artex, including those that have just had it skimmed over.

Yes you did, you said 'It's worth noting that if the house has asbestos that some lenders won't give you a mortgage' - Which mortgage lenders are these as i've never heard of it.

sienew

powerful_Rogue said:

sienew said:

powerful_Rogue said:

sienew said:

powerful_Rogue said:

sienew said:

It's worth noting that if the house has asbestos that some lenders won't give you a mortgage or will hold some of the money back until you get it removed. 

As for offer, it all depends on what you think they'll accept. Best case is £790k (valuation minus work to be done). Worst case is they think they can get the full valuation and they put the house on the market again. Just got to gauge how much you want the house and how willing you are to potentially tell you were to stick your offer.

What nonsense. Majority of houses built pre 1990's have asbestos in some form.

Not nonsense at all. Google it for MANY examples.

https://www.onlinemortgageadvisor.co.uk/property-types/asbestos-and-mortgages/

For some lenders, this can be a deal-breaker and their lending criteria will prevent them from providing a mortgage for property with asbestos.

The good news is that there are lenders that will consider mortgages for properties with asbestos and the expert brokers we work with know who they are and can help you get the best deal.

-----------------

If the mortgage valuation reports that asbestos is present and there is a recommendation for work to be carried about, some lenders will ask that the asbestos is removed before they agree to lending to you.

I've never seen a thread or heard of anyone having a mortgage refused because the house contained asbestos. That's even with the myriad of threads on here where a survey has highlighted asbestos.

Going by what you have posted, nearly all houses built 1990 would not be able to get a mortgage.

It's not true that "nearly all houses built before 1990" have asbestos. Sure, some houses built had asbestos, especially in the 80's but the vast majority that did have had it removed. I also didn't state that they wouldn't be able to get a mortgage, just that it can be an issue with some lenders and they may hold some money back from the mortgage until it's removed.

Again, absolute nonsense.

People don't just get asbestos removed when it's doing no harm, let alone the 'vast majority'. Lots of properties still have artex, including those that have just had it skimmed over.

Yes you did, you said 'It's worth noting that if the house has asbestos that some lenders won't give you a mortgage' - Which mortgage lenders are these as i've never heard of it.

I said some. Not all.

A quick search on this forum shows someone who had this exact issue earlier this year: https://forums.moneysavingexpert.com/discussion/6325419/asbestos-advice

And a mortgage advisor who says they have had clients applications denied because of asbestos https://forums.moneysavingexpert.com/discussion/comment/78888753/#Comment_78888753

It might not be an issue for the OP. The asbestos might be acceptable to the lender but like I said it's worth noting and being aware of. And if nothing else it's a very good negotiating tactic (the word asbestos instantly screams expensive/scary to most people).