Mortgage provider requesting damp and timber survey

kapolar

I am a FTB with my partner, buying in the south east. We found a 1930s property with tons of potential, it's a probate (granted) property which the owners want to sell asap. Ended up with an accepted offer 35k less than asking price (after already being reduced by 35k).

The property needs modernisation and some work (rewire, central heating, new carpets etc) which we have the budget for plus contingency.

Originally went direct to lender with nationwide for our mortgage which in hindsight was a mistake. They did a valuation and highlighted some damp which we were aware of from viewing the survey in the downstairs bay window.

When we viewed the property I brought along a family member who is a damp surveyor and said that it looked easy enough to fix. They are going to be doing a survey at the weekend for us.

Today I called a broker recommended via a colleague and he was very helpful. He basically said they are likely to ask for remedial work (if it needs to be done) prior to the sale. He also said there is a chance the sellers could refuse to pay for it because of the discount we have already (70k off original asking price). 

If we have to walk away then so be it but it is a real gem of a property in an amazing location. We couldn't afford a done up nice house in that area (yay for south east prices). Also to add that we have a level 3 survey lined up but haven't gone ahead yet as we were hoping to have a mortgage offer first. 

Has anyone been in this situation and what was the outcome? 

Woodstok2000

I had a friend in a similar situation, it was around 15 years back but they had also found a house, had an offer accepted some way below market value, but then were required to do some remedial work before mortgage approval.

The sellers refused to pay for the work, but they wanted the sale so it was agreed that they would pay for it and my friend would increase his offer by the same amount. Not sure how that worked legally, was maybe all done on trust but if your seller is keen then you should be able to find a way through this.

Jemma01

Remember that if your mortgage provider asked for that, the seller has no guarantee that a new buyer wouldn't face the same problem (unless they're cash buyers of course). 

Is the property pulled out of the market?

kapolar

Jemma01 said:

Remember that if your mortgage provider asked for that, the seller has no guarantee that a new buyer wouldn't face the same problem (unless they're cash buyers of course). 

Is the property pulled out of the market?

Yes very true! As probate is granted and the sellers are paying utilities and council tax etc they are keen to sell asap. In June the property will be faced with double council tax as it's been unfurnished (all factored into expenses etc). The house has been on the market since last July now.

Property is off the market, we have a solicitor and have had our initial ID checks done (things have been a little slow after Christmas). Told them to hold off with their house checks until we decide what to do just in case (as advised by them).

Hopefully it won't end up being a massive issue. I think the estate agent would prefer for us to go to a specialist mortgage company but my broker wasn't keen on that as the mortgage rates are very high so it isn't really the ideal option.

ACG

It depends on what the work required is and what the report says. 
We have had damp reports that basically say it will cost £2k to repair, the lenders might then retain that £2k until evidence of the work being carried out is provided. 

Very lender, surveyor and issue dependent.