Abbey Mortgage Question - techincal

TBeckett100

We were buying a property at 197. abbey valued it and it came back at 197 but 5k retention due to some works.

Solicitor faxed abbey and told them purchase price was 192k but that we could have 5k back when work are done.

question is, i have just got another 2k knocked off, due to xchange fri, but my question is, could I keep my deposit with same with abbey (85% of 197k) but have abbey release the extra 2k to me when the works are done. so i get 7k when the works are done?
Tom.

jill2002

Are you sure that Abbey are 'holding' the retention - very often they state that they suggest a retention, but don't hold it, check your Offer carefully.

If they are holding it back, then, let me get this right... the purchase price is £192k and you have just had £2k knocked off - so the purchase price is now £190k? The retention will still be held at £5k.

You are borrowing £167,450 (85% of £197,000) Therefore deposit is £29,550? You can keep your deposit the same - either £29,550 which will bring the LTV down or you can stick to the 85% or more if you want to allow for the retention. It depends on the package that you are going onto that will state the maximum loan to value on that deal.