Mortgage Undertaking

AngryCucco

Hi I’m just curious to see if anyone has experience of this. My lender requested a damp & timber survey after the vendor reported some water ingress a few months ago. The survey flagged only a couple of relatively minor issues regarding condensation and some random higher damp readings that seemed related to through stones (I had a L3 survey done in summer which reported similarly with no other major issues flagged). They outlined a few recommendations which were:

* installation of a PIV unit or extractor fans for better ventilation 

* installing insulation backed plasterboard

* reducing the ground level to the rear of the property by 150mm and backfilling with stone

My lender received this report and are happy to proceed with the mortgage offer as before and the valuer hasn’t adjusted the value of the property either. The lender has said I SHOULD get the recommended works done AFTER completion, which I believe is called an Undertaking. My solicitor said that lenders usually give you around 6 months and then may request evidence of the works being done. 

When I look online I just see reports of people needing to get remedial works done prior to completion and the lender may hold a retention payment until it’s done. I just wondered if people had experience of a lender chasing them after completion for evidence of work being done? It’s not that I don’t intend to do it, especially if it’ll improve the condition of the house, but I wonder what the lender’s expectations really are or would they accept *any* improvements if, for example, installing the insulation backed plasterboard might not be the best course of action as I’ve read these can exacerbate damp issues. Thanks!

P.S. I also hope I’m not being naive in accepting these repairs without getting a quote prior to exchange & completion that I could use to renegotiate… The top of the chain has been threatening to pull out this week due to the delays and my mortgage offer expires on 5th Jan, so to prevent losing the sale or my mortgage offer and having researched costs for the works I’m willing to take this on the chin as part of the joys of being a homeowner! The house is otherwise in good condition and meets all my needs. 

theartfullodger

I had retention on one house.  I sorted it & sent evidence thereof & the lender coughed up.

Wasn't chased.

The lender is after all just protecting their asset: If you don't like the deal go elsewhere (lender and(or property).

RAS

You want these jobs done to a good spec and high level of competence, or you'll be facing continued problems.

Which means you need to be the person organising and supervising it. Not relying on something rushed done by your vendor.

Get the quotes now so you can action in the spring. If the mortgage provider hasn't down valued, not sure your vendor will move on price but if you've got quotes, try for halves?

eddddy

I had to give a similar Undertaking to a mortgage lender.

In my case, it was an undertaking to fill a small gap in a party wall in a loft (to reduce the risk of fire spreading through the gap), within 6 months of completion.

The mortgage lender paid out the full funds on completion, and didn't ever mention the work again - they certainly didn't ask for any evidence that the work was done.