Buyers surveyor

housebuyer143

grayson said:

The buyer owns other properties in the area. He is buying so he can renovate and rent it out. Not sure if this makes a difference. 

They are much more likely to go by the surveyors price and not more. 

Bare in mind there is the property value, and the loan amount he will get based on the rent (assuming a BTL mortgage). They can be wildly different based on lenders criteria. 
I would not reduce the price because he couldn't get enough loan from the bank, but I would if the property value was given as lower than the offer. 

martindow

MikeJXE said:

I live in a rented flat and the landlord is getting a new mortgage on it.

I showed the building surveyor round and asked what he thought it was worth.

He said i am only here to ensure the value of the property covers the mortgage that the landlord wants to borrow, it's just a formality 

So depending on what you buyer wants to borrow will decide if he can buy it or not.

logically speaking if you are selling for say £200,000 and the buyer wants to borrow £100,000 where is the problem ?

Stop worrying what will be will be 

Surveyors are not going to discuss any details of their survey or their opinion of their valuation with a tenant or anyone other than their client.  Vague replies like this are their means of fending off further conversation.

grayson

The buyer is a builder who rents property. The surveyor came round a week ago and said he would be surprised if house is down valued. However, received this from buyer. 

Bank upheld price with conditions

A LTV of 70% instead of 75%

Retention of lending until key works are completed.

I have no idea what key works as house is in good repair. 

Is this normal practice for lenders?

SusieT

If the buyer is having a BTL mortgage it could be that there are a few little things needed to comply with regulations or to have it in what the mortgage company considers to be rentable condition - could be anything from new safety glass in a window to new carpets to a wired smoke alarm?

grayson

Is it up to the buyer or seller to pay for work?

youth_leader

My buyer said this after the survey.  He said his mortgage lender was prepared to lend him £285K, with a retention for the 'necessary work' he would have to complete within six months.

He said he would give me the option of completing £50K worth of work ie replace the roof and all of the ground floor floorboards (this was December 2020).  Once the work was done his mortgage lender would come back and 'inspect my work' and 'if satisfactory' they would lend him the £330K I was asking for.  I withdrew from the sale.  Absolutely ridiculous.

grayson

youth_leader said:

My buyer said this after the survey.  He said his mortgage lender was prepared to lend him £285K, with a retention for the 'necessary work' he would have to complete within six months.

He said he would give me the option of completing £50K worth of work ie replace the roof and all of the ground floor floorboards (this was December 2020).  Once the work was done his mortgage lender would come back and 'inspect my work' and 'if satisfactory' they would lend him the £330K I was asking for.  I withdrew from the sale.  Absolutely ridiculous.

Did you sell in the end without retention?

MikeJXE

grayson said:

youth_leader said:

My buyer said this after the survey.  He said his mortgage lender was prepared to lend him £285K, with a retention for the 'necessary work' he would have to complete within six months.

He said he would give me the option of completing £50K worth of work ie replace the roof and all of the ground floor floorboards (this was December 2020).  Once the work was done his mortgage lender would come back and 'inspect my work' and 'if satisfactory' they would lend him the £330K I was asking for.  I withdrew from the sale.  Absolutely ridiculous.

Did you sell in the end without retention?

Retention comes into play when the mortgage required is very close to the surveys valuation. If there is plenty of equity there won't be a retention request 

grayson

MikeJXE said:

grayson said:

youth_leader said:

My buyer said this after the survey.  He said his mortgage lender was prepared to lend him £285K, with a retention for the 'necessary work' he would have to complete within six months.

He said he would give me the option of completing £50K worth of work ie replace the roof and all of the ground floor floorboards (this was December 2020).  Once the work was done his mortgage lender would come back and 'inspect my work' and 'if satisfactory' they would lend him the £330K I was asking for.  I withdrew from the sale.  Absolutely ridiculous.

Did you sell in the end without retention?

Retention comes into play when the mortgage required is very close to the surveys valuation. If there is plenty of equity there won't be a retention request 

House was valued at £200.000. buyers deposit is £60.000

MikeJXE

grayson said:

The buyer is a builder who rents property. The surveyor came round a week ago and said he would be surprised if house is down valued. However, received this from buyer. 

Bank upheld price with conditions

A LTV of 70% instead of 75%

Retention of lending until key works are completed.

I have no idea what key works as house is in good repair. 

Is this normal practice for lenders?

Do you know this to be a FACT ?

The buyer could be telling you a pack of lies to get the price reduced

AFAIK they don't hold all the monies in retention until work is complete they hold enough to cover the work. 

You say the house is in good repair, are you being honest about that ? 

Yes ? so you are being taken for a mug then