Valuation for mortgage report

shell2407

Previous to receiving copy of survey, we received fixtures and fittings. Included in this were copies of 30 year certificate of guarantee for damp proofing service and run down of work completed for damp proofing, rendering, replacement joists etc. Cost £4300 in Jan 1990

Survey arrived this morn saying applicant should renegotiate purchase price on cost of necessary repairs.

a. electrical installation unsatisfactory
b. indications of dampness and beetle infestation
c. hack off hollow areas cracked and defective rendering and rerender
d. confirm adequate support to first floor joists

Any advice?

Purchase price was 110k was up at 117k, valuation via surveyor was 110k in present state and 112k after works carried out

Many thanks

Ian_W

Hi Shell,
Personally I would call the surveyer and discuss the various items with him/her. Specifically:
a. Is it a specific fault or is a full rewire being suggested. If it's the latter it's expensive and often disruptive involving chasing out plasterwork and redecorating etc. If it's the former it may be quite cheap & easy to fix.
b. Get details of where and mention DP warranty. Beetle infestation, unless it's really widespread is usually quite easily treated.
c. Extent, again if isolated not expensive.
d. Why? Explain papers from 1990, may just be covering surveyers back or maybe something quite significant.

Once you've got some more, you might be able to figure out how best to proceed. Might need you to get some quotes from sparky, builder, joiner etc and try to re-negotiate at least some of the costs from the vendor. Difficulty doing that might be it's been valued, even with probs, at what you're paying but the counter to that is you agreed price assuming a clean bill of health.

Wouldn't get in too much of a lather at this stage until you find out extent of probs. Surveyers often turn up stuff and always try to cover their backs by suggesting checks of this, that and t'other.

Post again what's said.

Al_Mac

FIL has done up a few houses, he was a structural engineer. Told me a surveyor would claim damp in any building over a hundred years old, even it had been sorted last week. It is a cover my !!!!!! statement.

The rest I can't comment on.

shell2407

Thanks both will keep you posted...

LouLouHelen

Shell

I am going though a similar thing. From what I have been told I think it is often the casr that issues brought up from a valuation are used for renegotiation.

Let's face it, the estate agent is putting a value on a property based on face value only, they do not check utilities or brickwork or anything else accept the type of property and the area.

I was told to get specialists in to check the electrics, I would do the same for the damp, rendering and floor joists. Once you have a more realistic understanding of what is involved and how much it will cost fax a letter over to the agent for the attention of the vendor. These problems are potentially not small/cheap ones so there should be some room for movement on the price.

Good luck - let us know how you get on.

shell2407

Hi again

Made a list of professionals I need to contact, going to get on the case first thing. May ring firm that did original Damp proof, joists and rendering and query 30 year guarantee and how we stand.

shell2407

OK survey in solicitors hands now, they are contacting firm that did original work and getting them to check out problems before we move in and hopefully rectify them. Has'nt affected mortgage offer thankfully.

Keep you posted

shell2407

Well, the company that provided the 30 year damp proof guarantee no longer exists, the house was already reduced apparently due to dampness and insect infestation. Gave notice as advised some weeks ago ,asked very kind landlord for extension, fortunately new tenants not moving in until the day after we now need to be out. It would have been nice to know the property had been reduced some weeks ago would have saved a lot of hassle.
We have decided to go ahead with the purchase and undertake the work at our cost. WHy on earth are these firms able to give 30 year guarantees?

cattie

With companies that offer an insurance-backed guarantee, there is a measure of protection should the company carrying out the initial work not be able for any reason to do any remedial works that may become necessary.

Really it is worth paying out a little extra for this as many of these damp & timber proofing companies do end up going out of business. Also a solid guarantee is something that will appeal to potential buyers when you come to sell your property.