Survey findings - if lender doesn't know can you not tell them

F37A

Hi

So lender is lending on a specific property based on desktop valuation. If survey reveals issues am I obligated to tell lender the contents of survey. I suppose some people don't even do own survey as can't tell lender anything.

I am irritated by the fact that a modern flat which looks like it has no survey issues was down valued by lender massively but an old flat with issues was granted lending by lender just because of its location most likely. End of the day if others can't get lending on property due to issues to the old flat that's a red flag. 

Thanks

kingstreet

You are not obliged to provide survey information to your lender. However, your solicitor (if acting for the lender as well) would have to do so if they are party to the report.

GDB2222

F37A said:

Hi

So lender is lending on a specific property based on desktop valuation. If survey reveals issues am I obligated to tell lender the contents of survey. I suppose some people don't even do own survey as can't tell lender anything.

I am irritated by the fact that a modern flat which looks like it has no survey issues was down valued by lender massively but an old flat with issues was granted lending by lender just because of its location most likely. End of the day if others can't get lending on property due to issues to the old flat that's a red flag. 

Thanks

I am confused. So, you want to proceed with the flat even though it has 'issues' that you know about. Why?  Whom are you fooling here?

F37A

GDB2222 said:

F37A said:

Hi

So lender is lending on a specific property based on desktop valuation. If survey reveals issues am I obligated to tell lender the contents of survey. I suppose some people don't even do own survey as can't tell lender anything.

I am irritated by the fact that a modern flat which looks like it has no survey issues was down valued by lender massively but an old flat with issues was granted lending by lender just because of its location most likely. End of the day if others can't get lending on property due to issues to the old flat that's a red flag. 

Thanks

I am confused. So, you want to proceed with the flat even though it has 'issues' that you know about. Why?  Whom are you fooling here?

Basically if I can get some money taken off the price of the flat then I can buy as long as issues easy to remediate. And if I try to sell after then people will get lending initially (just as I did) and given that a proportion of people will not do own survey then i can sell the property easily without me having to do any works after my purchase. 

GDB2222

F37A said:

GDB2222 said:

F37A said:

Hi

So lender is lending on a specific property based on desktop valuation. If survey reveals issues am I obligated to tell lender the contents of survey. I suppose some people don't even do own survey as can't tell lender anything.

I am irritated by the fact that a modern flat which looks like it has no survey issues was down valued by lender massively but an old flat with issues was granted lending by lender just because of its location most likely. End of the day if others can't get lending on property due to issues to the old flat that's a red flag. 

Thanks

I am confused. So, you want to proceed with the flat even though it has 'issues' that you know about. Why?  Whom are you fooling here?

Basically if I can get some money taken off the price of the flat then I can buy as long as issues easy to remediate. And if I try to sell after then people will get lending initially (just as I did) and given that a proportion of people will not do own survey then i can sell the property easily without me having to do any works after my purchase. 

So, the game plan is:

Buy the flat for a reduced price because of works needed.

Then sell on to a naive buyer at full price, but without doing the work for which you got the reduction.

Surely, one issue is that the new buyer's mortgage valuation will take into account the price you actually paid?

F37A

GDB2222 said:

F37A said:

GDB2222 said:

F37A said:

Hi

So lender is lending on a specific property based on desktop valuation. If survey reveals issues am I obligated to tell lender the contents of survey. I suppose some people don't even do own survey as can't tell lender anything.

I am irritated by the fact that a modern flat which looks like it has no survey issues was down valued by lender massively but an old flat with issues was granted lending by lender just because of its location most likely. End of the day if others can't get lending on property due to issues to the old flat that's a red flag. 

Thanks

I am confused. So, you want to proceed with the flat even though it has 'issues' that you know about. Why?  Whom are you fooling here?

Basically if I can get some money taken off the price of the flat then I can buy as long as issues easy to remediate. And if I try to sell after then people will get lending initially (just as I did) and given that a proportion of people will not do own survey then i can sell the property easily without me having to do any works after my purchase. 

So, the game plan is:

Buy the flat for a reduced price because of works needed.

Then sell on to a naive buyer at full price, but without doing the work for which you got the reduction.

Surely, one issue is that the new buyer's mortgage valuation will take into account the price you actually paid?

Need to decide whether to disclose to lender info on flat but i may not have a choice here. And if they don't lend based on information then that will be infuriating and i'd have no choice but to stop there. In this case i conclude the system is broken and stacked against the first time buyer maximising their misery. 

I'm hoping the other issue with the flat can be fixed quickly and with cost effectiveness. But damp / water ingress on exterior between window and cladding doesnt sound great.

propertyrental

Bit of a guess here but I suspect you have an obligation to inform the lender of any 'material facts' that you become aware of.

user1977

propertyrental said:

Bit of a guess here but I suspect you have an obligation to inform the lender of any 'material facts' that you become aware of.

Where would that obligation arise from? In any event, it would be far too nebulous to be enforceable. "You should tell us about the non-specific thing which we later decide we wish we had known about..."

eddddy

F37A said:

I am irritated by the fact that a modern flat which looks like it has no survey issues was down valued by lender massively but an old flat with issues was granted lending by lender just because of its location most likely. End of the day if others can't get lending on property due to issues to the old flat that's a red flag. 

Lenders valuations and lending decisions are heavily influenced by whether they think they could get their money back quickly and easily, if they have to repossess - perhaps when the market is slow and depressed.

So issues like location are important to them. For example, a flat with non-standard construction, or over a shop, or in a high-rise might be a 'safe-bet' if it's in central London, but not in some other areas. 

F37A

eddddy said:

F37A said:

I am irritated by the fact that a modern flat which looks like it has no survey issues was down valued by lender massively but an old flat with issues was granted lending by lender just because of its location most likely. End of the day if others can't get lending on property due to issues to the old flat that's a red flag. 

Lenders valuations and lending decisions are heavily influenced by whether they think they could get their money back quickly and easily, if they have to repossess - perhaps when the market is slow and depressed.

So issues like location are important to them. For example, a flat with non-standard construction, or over a shop, or in a high-rise might be a 'safe-bet' if it's in central London, but not in some other areas. 

This property is zone 5 it has a strong location. From a rental perspective it is strong and reality is just how many tenants would know about non standard construction or care about it

alanyau88

When tenants experience damp and cold in the property?  Who are you trying to kid here, the potential tenant or yourself?  What makes you think it will be re-mortgageable 5 years down the line?