10k retention please help

[bethan88]

hi ive had an offer accepted on a house, but the bank r now saying their putting a 10k retention on the morgage,because of building work. there is no way i can afford to pay this, completing the work is not a problem but i just cant afford the 10k. i dont no wat my options are and i want to continue with buying the house please help any advise will b apriciated thanks

[The Builder]

Have you been quoted for the building work Beth? I guess it's less than the 10k

[bethan88]

My parnter is a builder and we have other family members with multiple trades, I just can't see a way round this retention!!

[boxtops]

I had the same, I had damp work needing to be done before the mortgage company would release the full loan.

[ladybirder]

Have you tried negotiating a smaller retention figure?

[boxtops]

I can't remember how I got round it now, whether the buyer accepted less - how can you get work done if you don't 100% own a house?! Mine was twelve years ago so my memory of how I dealt with it is hazy - but I think mine was resolved when the seller found the damp certificate. Has the amount of work needing done on the house been costed up (even if you are doing it yourselves)?

[The Builder]

OK, well............... bit of a long shot.............. and not normally done. The sellers ought to be glad of a deal in the current market......... they might co-operate....... ask for a few weeks between exchange and completion. Get the gang in there and do the work BEFORE completion. Make sure the bank knows, and is willing to release ALL the money on the date of completion.

[bethan88]

its a repossed house so is owned by the bank! Can u do the work before contracts are exchanged? We r first time buyers and have little knoledge on how this works. Somebody told me that we can still exchange contracts but on the condition the work is carried out within 6 months, then the bank realease the remaining 10 k to the seller?

[The Builder]

No Beth, not BEFORE contracts are exchanged ........... after, but before completion.

Although, you could work before exchange, but you would be on risk if they didn't go ahead with the exchange.
If the bank owns it then, there is surely an arrangement to be made somehow. Do talk to the owners/Bank ........... there must be a deal there to be done :o)

[bethan88]

so it turns out there holding back the 10k because of mould they want us to get a specialist contracter to inspect the whole property and report on internal dampness including extensive condensation??? and the condition of all timbres including the sub floor and roof void. surley thats not goin to cost ten grand. they say that the house as it stands now is worth the full amount that weve asked for , but when the works carried out it will b worth 11 grand more, but if the house is only worth what weve asked without the work being done y r they holding money bk???? its all so confusing lol

[boxtops]

Sounds reasonable bethan, the works do sound expensive if you have to replace all the timbers - and the retention is a percentage of the loan, not necessarily related to the cost of the work to be done.

[bethan88]

but its only surface mould the estate agent didnt even no y the mould was there the property has been empty 4 3 and a half years we spoke to neibhor and the boiler froze in the bad winter and burst a pipe because the property was empty they had to break in and turn the water off they mopped up the best they could, but beacuse the property has been empty and not been heated and ventillated thats y the mould is there! looks like weve got to fork out for a structual survey and if that comes back clear then the bank shud realeae the retention