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    • Kitcat94
    • By Kitcat94 9th Aug 18, 10:19 AM
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    Kitcat94
    Questions about work required after completion.
    • #1
    • 9th Aug 18, 10:19 AM
    Questions about work required after completion. 9th Aug 18 at 10:19 AM
    I'm a first time buyer who is in the middle of buying a house. We've had our mortgage offer, all of the searches performed and we are still waiting for enquiries. Me and my partner wanted to complete by mid August which we are assuming isn't going to happen at this rate.

    The problem we are having is that the damp proofing needs redoing and the timber in the roof needs to be supported. When this was addressed in May, we agreed with the seller that we will pay for half of the repairs upon completion. However, when I informed my solicitor, he has said that the lender may want to amend the mortgage offer. I'm just wondering how long this will take and if there will be anymore delays. It has already been 3 months since we made the offer on the house. I'm just being impatient now.
Page 1
    • Cakeguts
    • By Cakeguts 9th Aug 18, 11:10 AM
    • 4,658 Posts
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    Cakeguts
    • #2
    • 9th Aug 18, 11:10 AM
    • #2
    • 9th Aug 18, 11:10 AM
    What do you mean that you will pay half of the repairs on completion? You haven't asked the seller to do the repairs to the house before you buy it have you? This is not something that you should ever do as they will most probably try to get away with the cheapest repair that they can do and you will finish up having to have it done properly after you own the property. It the property needs repairs you do it yourself when you own the property. You never ask the seller to do it before you buy.
    • bowlhead99
    • By bowlhead99 9th Aug 18, 11:12 AM
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    bowlhead99
    • #3
    • 9th Aug 18, 11:12 AM
    • #3
    • 9th Aug 18, 11:12 AM
    When you say you are paying them half of the repairs upon completion, you mean:

    - on completion of the work that they are carrying out (before you own the property?) or, maybe more likely,

    - on completion of the property purchase ? (by increasing what you pay them for the property compared to what you had originally offered, on the basis that they have done the work and you won't have to do it), or

    - you are paying half and they are paying half when you get the work completed after you move in ? (and you'll achieve it by lowering the price you pay for the property or maybe just by holding back some of the sales price in escrow until the final bill arrives).

    If the price of the property is changing to account for this work then the lender may need to change the documents to reflect that new price or value and see what your LTV is like after accounting for a different value and understand what your affordability is like after you are paying for work that wasn't originally forseen; and might they need to consider whether they release all the mortgage funds to you straight away if you need to do some work to support the roof before the house is worth what they thought it was worth.

    Or it might be quite simple, in that they have already had the place valued correctly by their valuer and they don't really care if you choose to pay a bit more for it to help the vendor out with their repair costs but they want to get the numbers right on the paperwork.


    Maybe a bit more info needed. Still, the best place to ask how long it might take for the lender to consider if the offer needs to change is your solicitor, the lender, or mortgage broker if any... because they are likely to be closer to the lender's practices and workloads than we are.
    Last edited by bowlhead99; 09-08-2018 at 11:15 AM.
    • Kitcat94
    • By Kitcat94 9th Aug 18, 11:15 AM
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    Kitcat94
    • #4
    • 9th Aug 18, 11:15 AM
    • #4
    • 9th Aug 18, 11:15 AM
    When we had our valuation they found that the damp proof needed to be redone. We did originally say that we would pay to have the repairs done if they lowered the price of the house. This they refused. We came to the agreement to just split the price of the work and we would be the ones actually getting the work done when we move in. They will have vacated the property.
    • bowlhead99
    • By bowlhead99 9th Aug 18, 11:25 AM
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    bowlhead99
    • #5
    • 9th Aug 18, 11:25 AM
    • #5
    • 9th Aug 18, 11:25 AM
    So they are not lowering the price of the house all the way to the lower number you wanted, but they are going to lower it half way? And you will be buying a property that needs damp and roofing work at the time you exchange and complete the purchase.


    If the lender looking at your valuation report has already said the house is only worth 98k due to the damp and roofing work, when you were going to buy it for 100k - and they were already fine with that, it is not much of a big deal for them to formally confirm that you are now going to pay 99k instead of 100k.

    However if they had said they'd lend against a house worth 100k and you are now paying the vendor 99k knowing that it needs 2k of work to be worth the 100k, they will have to consider whether they want to give you the full loan amount when you buy it or perhaps retain some of the funds until you have actually done the work and it's really worth the full 100k.
    • Kitcat94
    • By Kitcat94 9th Aug 18, 11:29 AM
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    Kitcat94
    • #6
    • 9th Aug 18, 11:29 AM
    • #6
    • 9th Aug 18, 11:29 AM
    It wasn't the lender that found the damp, I had a separate home buyers report done on the property. I'm just really confused about the whole thing really. Could we each just pay the solicitors the building fees and let them pay the builders?
    • armchaireconomist
    • By armchaireconomist 9th Aug 18, 12:20 PM
    • 297 Posts
    • 360 Thanks
    armchaireconomist
    • #7
    • 9th Aug 18, 12:20 PM
    • #7
    • 9th Aug 18, 12:20 PM
    How bad is the damp? The support to roof is likely very low cost, and you'll struggle to find a property that a homebuyers report won't flag for damp to be perfectly honest.


    It would make more sense to just do the work yourself (presuming you've factored in the work required to the purchase price)
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