�2000 retention on Mortgage

[BearBellyUK]

I'm just getting a mortgage, and the house that I have gone for has been valued. The report that has come back says that there is a �2000 retention on it. What does this mean?

This is my first house and don't know what it all means.

[charliebaps]

Have you had your survey details back? Check them as a possibility is that the mortgage company won't lend you all the money until some repair work is carried out. Once everything is to their satisfaction then they will release the other 2K. This is only a possibility as this happened to the people i am buying off. The best bet would be to ring your mortgage company and ask them to explain it all to you. They should be helpful.

[BearBellyUK]

So would it be up to the vendor to either repair this or reduce his asking price?

[charliebaps]

In my personal experience (and this probably varies greatly) the purchaser carried out the work but I do not know if the vendor compromised on price.

[dzug]

If it's a new house (sounds like yours is not though) they can withold money until they are satisfied it is finished. (You might wish to keep back money from the builder too)

[Clueless One]

Normally, the Lender will allow you to complete the purchase of the property up to a �2000 retention. This basicaly means that there are �2000 worth of works to be done on the property before it is of a satisfactory standard according to the valuer. Normally, retentions of �2000+ would mean that whilst contracts can be exchanged, legally ensuring the property will be yours, the funds to complete the sale would not be released by the lender until the works are caried out. Please check with your Financial Adviser or Mortgage Lender to see what their criteria is.