retention

[gilby]

I am currently selling my home. The buyer has had a survey done and there is a retention as the damp course needs doing. Does this affect me in any way? WE are selling the house cheaper than it has been valued as we are aware that work needs doing on it.

thanks

[Oneeyedvic]

It will only affect you if they can't afford the money.

As an example, if the house is valued at �150,000 and they want a mortgage of �100,000. The retention is held back until the damp proof course is done - ie they will only lend them �80,000 and then when the dpc is signed off, lend them the further �20,000

If they ahev the money to cover this, then there is no problem, if they haven't then you need to find a new buyer

[gilby]

so they need to pay the money upfront to buy the property..... then when the work is done and ten they get it back???

[Oneeyedvic]

Using the figures I gave fro mthe above example, they would need to find �70,000 (don't forget they already had a �50,000 deposit) and find the extra �20,000. Once the work was done (probably costing �20,000, the mortgage company will lend them the further �20,000)

[gilby]

Thanks for your reply. Luckily it is only a �2k retention so we have come to an arrangement over it.