Mortgage Valuation

CatMars

Hi

My son is a first time buyer, the house he is buying has been valued for the mortgage and they are asking for 'a roofing contractor to inspect the roof coverings and carry out any necessary repair/renewal'.

Is this something he needs to organise, or is it the responsibility of the sellers?

Thanks 

ACG

Its by negotiation. 
If the property was valued ok despite the works, there is an argument to say it was priced to sell. The other issue is, are the sellers going to get the best or the cheapest? 

But then is your son going to spend money on a house he does not own? 

CatMars

ACG said:

Its by negotiation. 
If the property was valued ok despite the works, there is an argument to say it was priced to sell. The other issue is, are the sellers going to get the best or the cheapest? 

But then is your son going to spend money on a house he does not own? 

Thanks for your reply.

The house has been valued on the mortgage at 140k, which is what it was marketed at... it went to best and final and his offer of 150k was accepted.

Paying over the asking is okay, if he's then not going to be lumbered with 5k for a new roof. But I know that can be discussed when we know what he is dealing with.

But who does it fall to to get the roof assessed? He obviously can't send someone round to a house he doesn't own... would the solicitors appoint someone? Like they do for the survey?

Hoenir

CatMars said:

But who does it fall to to get the roof assessed? He obviously can't send someone round to a house he doesn't own... would the solicitors appoint someone? Like they do for the survey?

The inspection should be arranged through the EA. The vendors could decline the request however the sale would immediately fall through. Who ever goes represents your son's interests and needs to be appointed by him. 

fergie_

Your son should speak to the lender about what they are looking for and what they will accept. 

What the property is worth, the condition of the roof, if any work is required and at what cost are 4 different questions.

The bank are asking as it impacts on their willingness to borrow, but your son should have an interest incase the property needs work or not. If it is urgent and impacts on the sale, he would then need to discuss that with the seller to decide the best way forward.

Lender - wants to know actual condition and whether this impacts on asset value.

Buyer - wants to know condition and what is required to be spent and when. May prefer inflated cost to renegotiate purchase price.

Seller - wants to limit required expenditure so that sale goes through.