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Valuation survey and structural problems
mattlocks
Posts: 5 Forumite
Apologies for the length of the post ... hopefully someone here can help me please !
I am looking at buying a really nice Victorian house but it seems to have a structural problem and is probably the reason it seems a relative bargain.
I am intending to get a structural engineer to look at it soon - basically its got some stepped cracking under the roof eaves for maybe 4 courses of bricks around the point where an extension juts out from the main house. The extension looks to be almost as old as the house. It doesn't look too bad to me because it is high up. (I had a much more siginificant crack that got strapped in my old house!)
Now I don't personally have a problem with fixing the problem if I get satisfactory answers from the surveyor. My long term plans would be to convert the attic which, if it is done properly, involves some kind of metal brace around the top of the four walls on the inside so I imagine the cracking could be stabilised and fixed along with that work.
The real concern I have is that the lender valuation survey will fail unless some work is done first or I won't easily be able to get insurance for the mortgage to go through even though there is no danger of it falling down.
Lots of questions....
- If the valuation survey fails is that a dead end - is there any room for negotiation with the lender or do you or the seller have to get the work done and the whole mortgage application process have to start again from scratch?
- Can you buy a house and have the work done later?
- If work is done before the sale can it simply be signed off by a surveyor once complete? Or will the lender surveyor require some period of time have to pass for assessment of the repair and if the cracks are still moving? I don't know the history of the problem in this case.
- Does the size of your deposit relative to the valuation have any effect on the lenders willingness to lend in these situations? I have about 25% from a previous sale.
Thanks in advance for any advice!
Matt
I am looking at buying a really nice Victorian house but it seems to have a structural problem and is probably the reason it seems a relative bargain.
I am intending to get a structural engineer to look at it soon - basically its got some stepped cracking under the roof eaves for maybe 4 courses of bricks around the point where an extension juts out from the main house. The extension looks to be almost as old as the house. It doesn't look too bad to me because it is high up. (I had a much more siginificant crack that got strapped in my old house!)
Now I don't personally have a problem with fixing the problem if I get satisfactory answers from the surveyor. My long term plans would be to convert the attic which, if it is done properly, involves some kind of metal brace around the top of the four walls on the inside so I imagine the cracking could be stabilised and fixed along with that work.
The real concern I have is that the lender valuation survey will fail unless some work is done first or I won't easily be able to get insurance for the mortgage to go through even though there is no danger of it falling down.
Lots of questions....
- If the valuation survey fails is that a dead end - is there any room for negotiation with the lender or do you or the seller have to get the work done and the whole mortgage application process have to start again from scratch?
- Can you buy a house and have the work done later?
- If work is done before the sale can it simply be signed off by a surveyor once complete? Or will the lender surveyor require some period of time have to pass for assessment of the repair and if the cracks are still moving? I don't know the history of the problem in this case.
- Does the size of your deposit relative to the valuation have any effect on the lenders willingness to lend in these situations? I have about 25% from a previous sale.
Thanks in advance for any advice!
Matt
0
Comments
-
- If the valuation survey fails is that a dead end - is there any room for negotiation with the lender or do you or the seller have to get the work done and the whole mortgage application process have to start again from scratch?
There's no such thing as a "failure" as such. The survey will simply point out what the issues are. Whether the lender is bothered pretty much depends on the size of your deposit ... your last question.- Can you buy a house and have the work done later?
Possibly - it depends on the size of the mortgage (L) relative to the value (V) of the property (LTV). For this purpose, it's the value for mortgage purposes and not what you pay for it.- If work is done before the sale can it simply be signed off by a surveyor once complete? Or will the lender surveyor require some period of time have to pass for assessment of the repair and if the cracks are still moving? I don't know the history of the problem in this case.
Who is going to do the work? If it's done before the sale, then you are dependent on the seller having the work done. If you've not exchanged then you might not be successful in buying it. Indeed, the seller could simply withdraw it from the market.
But assuming the seller has the work done, then the lender might want another survey or might simply accept some kind of confirmation of the work done.
You talk about movement ...... monitoring is usually undertaken for months ... years even.- Does the size of your deposit relative to the valuation have any effect on the lenders willingness to lend in these situations? I have about 25% from a previous sale.
Yes, the deposit is relevant. If the LTV is 75% you might well not have a problem with the lender.
Thanks in advance for any advice!
Matt[/quote]Warning ..... I'm a peri-menopausal axe-wielding maniac
0 -
Thanks for the advice.
The sellers seemed quite flexible and keen to sell so I think they might come down some on the price if some work needs doing.
I don't know whether previous potential buyers have been scared off by their own homemover / structural surveys or whether it was the bank refusing to lend based on the valuation survey. I know these kind of things can put off nervous buyers very quickly
I am going to see if they will offer up more information in my next viewing.0
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