Mortgage clause help damp/timber survey

cer1924

Offer accepted, mortgage has put clauses on and confused re exactly what they mean, solicitor directed us to estate agent, estate agent confirmed seller not willing to pay anything but is happy for us to...

Mortgage clause attached. We are OK with getting builder for work on ceilings between exchange and completion, going to get damp/timber survey done ahead BUT we already know there is a fair amount of damp in the 2 cellar level rooms (one was kitchen which we plan to move). I am worried that once we get damp and timber survey done bank will say that work needs doing to solve damp before fund release, anyone have any advice?

Also not sure how we get reports/proof of work to bank, went direct for application via online portal, do we just upload survey on there?

Thank you all.

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anselld

Get the reports and quotes by all means, but it sounds like a non-starter… too much work to do to make mortgageable. Work between exchange and completion is risky at the best of times but particularly if release of funds is dependent on a successful outcome.

FreeBear

If you need a damp & timber survey, find an independent surveyor that does not have any links to a company that does the work. Also avoid any "free" surveys as these invariably turn in to a sales pitch for unnecessary (and potentially damaging) work.

I would also say avoid anyone with links to the PCA (a trade body that promotes many of the bad damp cures & spray foam insulation), but unfortunately, mortgage companies often require PCA accredited surveyors.

Cellars, by their very nature, are damp, and in some areas, prone to flooding. Tanking and sump pumps help to alleviate some of the issues, but they don't always work.

Chief_of_Staffy

Even assuming that's possible (and having been renovating my new place for 6 months now I'd say some kind of magic would be involved to schedule and undertake that work in a timely fashion), have you considered the eventualities? Such as, you spend tens of thousands and the sale falls through? What if the work causes damage to the house? You can't buy it, because you won't get your mortgage, you'll lose what you paid for the work, you'll be forced to compensate the seller to the tune of 10% of of the agreed purchase price and the seller will almost certainly sue you for the remedial work.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81990860#Comment_81990860

In addition, I would guess any insurance company would be very wary of insuring the property.

GeneralJoe

I’d be very cautious about assuming you can sort this between exchange and completion. If the lender wants the issue resolved before funds are released, exchanging first could leave you badly exposed.

Personally I’d want clarity on 3 things before exchange:
1. exactly what the lender requires
2. whether they want only a report, or report plus works
3. who signs off that the condition has been satisfied

And for the damp report, I’d use someone independent rather than a company that also wants to sell the remedial work.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81991854#Comment_81991854

Yes, it sounds more like a suitable property for a cash buyer.

jamesmiller120

It depends on the exact wording of the mortgage conditions. Sometimes the lender only wants the damp/timber report, but if the damp is severe they may require works to be completed before releasing funds.

Your solicitor should clarify this with the lender. Usually any reports are either sent by the solicitor or uploaded through the lender portal.

cer1924

Thank you all. Solicitor came up with suggestion seller gets quotes for repairs, we agree cost, seller pays for it and we add it to sale costs. Now waiting to hear if they accept that.

Then waiting before doing anything re damp to see if they clear house for the survey. If we get that far we will go for independent damp/survey surveyor.

FreeBear

Never allow the vendor to commission and pay for repairs. Chances are, it will be done on the cheap (read, corners cut), and you won't get to benefit from any guarantees/warranties. That said, any guarantee for work done under the auspices of the PCA is so full of cop out clauses, it is worthless. Better bet would to be to get the value of any works knocked off the price, and you can make the decision as to whether to go ahead based on an independent survey.