Mortgage retention, confused

[baconbuttyman]

If i buy a house and the surveyors report comes up with a damp proof course needs doing and the timber needs looking at and they place a £3000 retention on the mortgage, how does that work. how can i put right things on a house that i dont own, a little confused to say the least

[derekosb]

Originally Posted by baconbuttyman

If i buy a house and the surveyors report comes up with a damp proof course needs doing and the timber needs looking at and they place a £3000 retention on the mortgage, how does that work. how can i put right things on a house that i dont own, a little confused to say the least

Hi Mick,

It is not particularly helpful if you need to borrow money to buy the house that they then won't give you the whole amount you need because it needs repairs!

So you want to borrow £50,000. Owing to the need for repairs the lender places a £3000 retention on the mortgage. You then only get £47,000 from the bank, carry out the repairs, prove you have done them and the bank then releases the final £3,000 of the mortgage.

From one of these legal advise sites:

Mortgage retention
A sum of money retained by the lender until certain conditions have been complied with, for example, they may require that essential repair work is carried out. The remainder of the loan will be released when the work has been completed and proof of this has been provided to the lender. The works are normally recommended by the surveyor who carries out the mortgage survey and the lender then makes it a condition.

Hope that helps.

Derek

[Zeb]

In effect, what the lender is saying is that currently the house is worth, for example, £47k.....and with the repairs done it is worth £50k....so, depending on circumstances, you could use this as a bargaining point with the seller...

[baconbuttyman]

Originally Posted by Zeb

In effect, what the lender is saying is that currently the house is worth, for example, £47k.....and with the repairs done it is worth £50k....so, depending on circumstances, you could use this as a bargaining point with the seller...

just got the home buyers report and its not good, repair this, repair that, pre problem is the vendor is a bank, its a reposession

[danmayberry]

it pays to know a cheap/good builder cheers-dan

[suffolk boy]

the walls can be injected which will cure the damp get some quotes.make sure the damp course is not bridged on the outside ie earth above the course render applyed over it etc.as for the timbers if they are rotten they will have to be replaced

[chrissyboy]

alot of houses get damp due to previous owners doing paving outside . by doing paving you will increase the height of the ground outside thus rising above the damp course in the extrenal walls .. have a look if this is the case you just needs to cut back the paving by say 3 inches so the wall isnt touching the ground . if the walls have been rendered then you will have to cut along the whole wall by at lease 6 to 8 inches and remove the bottom part of the rendering ,then you will need to form a drip along the edge of the bottom of the render thus doing what the term drip applies .. depending on where the damp is of course .most houses with bay windows do suffer with damp in the bay ,if they have no lead flashing but have the old cement fillets that seal the line along the edge of the wall where the bay edge meets ... also damp can be caused if there is a dividing wall on the garden boundaries ,ie if the wall has been added later than when the house was first built .. people tend not to install a vertical damp course ... depending on where the damp is and how much there is you may be able to cure it yourself .alot of the wall injection stuff dont work as the idea of double brick work is to have an inner and outer wall so damp will not penetrate in to the internal course of brick .... an easy indicator of the damp course being covers is that the top of the skirting board will show signs of wet ... if so then a day of your time would sort it ,then just the survayour back in to pass it ..i have cured a dozen or so this way . dont forgot that damp is just like a repair on a car mick ,no good just repairing the damp you need to find the cause too

just another thought .. if the house is eot check that the slates/tiles are over hanging on the verge by 2 ininches ,if not the rain water will just find its way in and down the wall ,same for around the chimney if the flashing is not fixed then water can get in also the lead chimney gutter .. anyway im sure your know someone that will put it right for you .you also mention timber ? i take it in the roof ... thats not so bad as it can be treated and repaired fron the inside by bolting new bearers as long as you can get then on the wall plate and resting on a a beam for support ... al in all mick its not as bad as it sounds .

[baconbuttyman]

we are expecting a damp prrof and timber specialing to go and give a reporton it monday morning, they looked at the report and tbh, he said most report like this are tosh, the surveyor will pick apart everything he can, from claiming a house needs a rewire simply because a there is a crack to a light fitting, he said dont take it too badly, most people think like did the surveyor go into the same house as we did??

also, they used a surveyor from another town, who doesnt know the area, yes any house can get problems etc, but the specialist went on to say he knew the area of the house very well and the houses are built to last, so he is not expecting a massive amount of work etc, hmmm will believe it when i see it lol
wait til monday

[Borg Warner]

Originally Posted by baconbuttyman

we are expecting a damp prrof and timber specialing to go and give a reporton it monday morning, they looked at the report and tbh, he said most report like this are tosh, the surveyor will pick apart everything he can, from claiming a house needs a rewire simply because a there is a crack to a light fitting, he said dont take it too badly, most people think like did the surveyor go into the same house as we did??

also, they used a surveyor from another town, who doesnt know the area, yes any house can get problems etc, but the specialist went on to say he knew the area of the house very well and the houses are built to last, so he is not expecting a massive amount of work etc, hmmm will believe it when i see it lol
wait til monday

Absolutely. Did you get a report with the traffic light system? Green ok and red needs doing urgently.

When we received our report back in the summer the surveyor said there was a supporting wall missing in the pantry. If he had bothered to look a little more in the loft space he would have seen this was not the case. Apparently they highlight everything in worse case scenario terms so as not to be sued.

Way of the world I suppose.