Damp & Timber report requested for Mortgage

Ezzbis2023

Hello everyone, I hope someone who had a similar experience could shed some light in to my issue. I am buying a house and have applied for mortgage with NatWest. The house is really cheap compared to similar properties in the area although it needs some work doing. NatWest conducted their valuation have asked for Damp and Timber by PCA member. Seller wont pay for anything as he has also sold for cheap. NatWest has not asked to carry out repairs yet they only asked for Report. If for instance report comes back with some redial works do I have to carry them before mortgage can be issued or NatWest can put on retention? Many thanks in advance. 

chanz4

retention likely

FreeBear

Ezzbis2023 said: NatWest conducted their valuation have asked for Damp and Timber by PCA member.

Oh dear.... The PCA is the trade association for the damp & timber treatment industry (they have also taken on spray foam installers, that should tell you everything you need to know). Whilst you can get a free survey done, the surveyor salesman will find rising damp and tell you the DPC has failed. You could pay for a survey from one of these damp treatment outfits, but the report will probably say the same thing.

If you want an honest report, you need to find a surveyor that doesn't have any links to a damp & timber company - I would also say without any PCA affiliation either, but then NatWest would probably ignore the report.

Ezzbis2023

Below is what is received from NatWest


''We've received the valuation report, however the valuer hasn’t provided a present condition valuation figure. Instead, they’ve provided a valuation for after completion/repairs/resolution of outstanding issues. Here are the valuation report details:
After Repairs completed / Reports acceptable Valuation figure - 180000
Valuer comments: Evidence of dampness and timber infestation was noted. A further inspection of all parts of the property should be undertaken by a specialist contractor who is a member of the Property Care Association, and all recommended remedial work carried out, backed by an appropriate insurance backed guarantee.If your client still wishes to proceed with this property, please send us: 1. Timber and Damp report''

I have bought the property for £180,000 and lender has valued £180,000 only after repairs. does that mean bank will offer mortgage straight away once repairs are completed. I am just worried that If I carry out suggested repairs bank might pick up something else? can they do that? would they do another valuation following repairs being completed? 

Pleaseeeeee help....

BlueVeranda

Don't you need the mortgage to be issued so you can buy the property before you can start work on any repairs?

Ezzbis2023

BlueVeranda said:

Don't you need the mortgage to be issued so you can buy the property before you can start work on any repairs?

Yes I do. But what about if mortgage is not issued until repairs are done? seller does not want to pay for anything because he sold the house for cheaper price due to work needed. 

theartfullodger

Buy for cash, sort the issues, then get a mortgage.

Ezzbis2023

theartfullodger said:

Buy for cash, sort the issues, then get a mortgage.

Ahhh I wish thats a lot of money to buy for cash. I do no have funds.  

BlueVeranda

If the lender won't release the mortgage until repairs are completed and you can't purchase without a mortgage then you will have to pull out.

I would never ever ever agree to foot the bill for repairs to a house I do not own. Not even if there was a promise of me being able to buy it afterwards. Not until contracts are exchanged.

Ezzbis2023

BlueVeranda said:

If the lender won't release the mortgage until repairs are completed and you can't purchase without a mortgage then you will have to pull out.

I would never ever ever agree to foot the bill for repairs to a house I do not own. Not even if there was a promise of me being able to buy it afterwards. Not until contracts are exchanged.

Thanks, Seller is willing to exchange contracts and do the repairs afterwards. However i am just worried that bank will go again to the property to check the damp but may pick up something else? is that possible? Reading at what they said looks like they are happy to value the property after damps repairs are done. What do you reckon? 

BlueVeranda

If the seller is amenable to you doing the repairs between exchange and completion that's helpful as it gives you a way to be able to satisfy the mortgage conditions, and both parties are committed to the sale at that point. You'll probably need to draw up a legal agreement with both solicitors. There's more information here: https://www.bowfin.co.uk/can-you-do-building-work-between-exchange-and-completion/

The lender would have to have another survey done to confirm the work had been carried out and to the required standard. Presumably, though, this would be another report on the same area that they've asked for this time.