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    • Molly2019
    • By Molly2019 17th Apr 18, 9:49 PM
    • 3Posts
    • 0Thanks
    100% Retention/Structural Survey - will they tell me valuation now?!
    • #1
    • 17th Apr 18, 9:49 PM
    100% Retention/Structural Survey - will they tell me valuation now?! 17th Apr 18 at 9:49 PM
    Hi guys,

    FTB here! I posted before as lender valuation advised 100% retention & requested structural survey, roof report, damp/timber & electrical. (Surveyor comments worried me as no valuation given/indicated house was falling down).

    Anyway, much to my surprise vendor agreed via EA that we could renegotiate price based on outcome of report. (Lender report also indicated roof problem).

    Survey was carried out yesterday by MICE structural engineer & I’m currently awaiting report. However, he disagreed with many of lender valuation ‘comments’ roof problem far so good....BUT...he did say work needed doing but upon completion of repairs house would be structurally sound/suitable for mortgage purposes....even stated he’d be happy to oversee work required/sign it off etc...estimated £8k of work in worst case scenario. (Basically the ‘weather wall’ has dropped slightly & part of it needs ‘tying back in’).

    Engineer & broker seem to think this is ‘acceptable’ remedial repairs & broker advised could possibly do between exchange & completion. Therefore, lifting any ‘retention’ imposed & allowing sale to proceed.

    My question is this would lender now give me an indication of valuation (if structural engineer recommendation is acceptable? Can they ‘argue’ with this? If he’s confirming stability based on work being carried out).

    Surely, they know I need valuation at this point in order to negotiate with vendor! No point in me getting building quotes agreeing price & then the valuation is under price still? (If that makes sense).

    Any experience/advice/thoughts much appreciated. Thanks Molly
Page 1
    • dimbo61
    • By dimbo61 18th Apr 18, 8:32 AM
    • 10,136 Posts
    • 5,483 Thanks
    • #2
    • 18th Apr 18, 8:32 AM
    • #2
    • 18th Apr 18, 8:32 AM
    Well you need to wait for report and see what the lender think and if they will now lend money on the property.
    Are you doing major works on the property once you have bought the place ?
    Do you have the funds /equity to spend thousands on major structural work.
    • kingstreet
    • By kingstreet 18th Apr 18, 9:12 AM
    • 34,640 Posts
    • 18,837 Thanks
    • #3
    • 18th Apr 18, 9:12 AM
    • #3
    • 18th Apr 18, 9:12 AM
    All the reports requested should be forwarded to the lender for onward transmission to the surveyor who will then establish the current and post-repair values.

    I'm surprised your broker couldn't tell you this as it's simply standard procedure.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Molly2019
    • By Molly2019 18th Apr 18, 10:18 AM
    • 3 Posts
    • 0 Thanks
    • #4
    • 18th Apr 18, 10:18 AM
    • #4
    • 18th Apr 18, 10:18 AM
    Thank you for your replies.

    I think I did not explain clearly - to clarify - work would need to be carried out prior to completion to enable sale to proceed.

    At present £0 valuation was given & 100% retention imposed.

    Lender advised unable to advise valuation until structural engineer confirmed stability.

    Structural engineer has confirmed stability once repairs carried out. Therefore, as this ‘issue’ would be removed prior to completion at no risk to them - I am unsure as to why they still ‘wouldn’t lend on property’.

    (As far as they are concerned - vendor could be carrying out repairs. As long as work is ‘signed off’ before completion, if not, they don’t release funds - simple).

    (Yes, I have refunds to complete work required.)

    If they are to disagree with structural engineer regarding this, I am unsure as to why they would even request his ‘opinion’.

    My concerns are - I can confirm quotes with vendor & this would be deducted from offer as agreed.

    But I still have no indication as to their valuation! Which you will appreciate is needed in order to advise vendor.

    I.e I cannot agree new cost based on repairs & then advise ‘sorry lender says it’s only worth £x amount - can you knock off an extra xxxx

    Kingstreet you advised valuation would be given on receipt of reports. Thank you!

    I hope this is the case so I will be in a better position to to decide on whether to proceed.

    Thank you
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