Hi everyone,

just wondering if you could give me some advice on my house purchase..

I got survey results back nearly 4 weeks ago and had to get quote from builder to rebuild a retaining wall before mortgage company will continue with it. It has been a nightmare trying to get builders but finally got one(not written up yet just verbal)of at least a coupleof grand. Now I cant really afford this on top of the house purchase. However the house was valued at my offer price without the work being done, so do you think I will be able to ask for a price reduction because of this woork that needs doing? I am a FTB and totally new to all this, do i go through EA or ask my solicitor to do something?

Its all very confusing I LOVE the house, have already spent loads on surveys mortgage fees etc. but need to get this sorted out before i get chucked out of rented house so if all falls through i can just rent elsewhere and give up on the whole stress of buying a house

Will your mortgage company continue with this on the basis of a quote that you pass them? Or do they want proof the work has been done? Has the house been sold before without this retaining wall or is it in bad repair whereas it wan't last time it was on the market?

What I'm saying is you could give them the quote, they will decide from that whether they want to lend you the money or not. If your lendor then feels, due to the cost involved, that their original valuation was off the mark you can try to negotiate down.

If they do nothing at all you can still try to negotiate down or you can move in and have the retaining wall rebuilt at your leisure after you've moved in.

If you have met the seller then I would show him/her the report and initially ask them to reduce by the amount of the quote. If they will not go for that, and if you love the house, then try for 50/50.

But if it is an empty property and you are only dealing with the EA, you can try the same as above but ... Depends on other factors too, how long was the property on the market, did you offer the asking price, etc.

as far as i can tell from mortgage company they want me to get wall rebuilt within 3 months of moving, but needed to see how much would cost so as can decide re lending the money. Its a blockwork wall in front of parking space and its a pretty bad state of repair but cant tell how long its been like that for

I have met the seller, but only at the two viewings i did, otherwise its all been through estate agents. So I dont have their number or anything and dont really wanna just turnup on their doorstep. In this situation wd you recommend i go to my solicitor first or just straight to EA?

Okay well if you've done everything so far via the EA stick with them for this issue. I presume the vendors know the survey results, or the main points at least?

I would let the EA know the estimate you've had (and still attempt to get at least another one and the first one as a written quote) and see if the vendor will go 50/50 on it.

As you love the place this isn't a big issue and if its been like this for some time the vendor may not be willing to spend money on what is not a structural problem with regards to the house. Personally I wouldn't even bother getting it done within that 3 months unless you have the money going spare - they won't check. Sounds like a job for as and when finances allow.

If I was you I'd try and get a discount on your initial offer, so that you can fix the problem. You wouldn't pay for something defective in a shop, without getting some money off would you?

quote:

Originally posted by reverand:
If I was you I'd try and get a discount on your initial offer, so that you can fix the problem. You wouldn't pay for something defective in a shop, without getting some money off would you?

Reverand has a point, would you buy a car at full market value if you knew it needed a couple of grand spending on it to make it safe? Not knowingly!

We did exactly this following our surveyor's recommendations. We had to provide a copy of the homebuyers report and a written quotation for the work needed. We did it all through the EA. The EA wanted the sale to go through so they were more than helpful in negotiating a deal that everyone was happy with. In the end the vendors did one lot of work themselves which they had to provide proof of to our solicitor, and met us 50/50 on the other lot of work.

We went into the renegotiation thinking they had us over a barrel because at the end of the day we wanted to buy the house regardless. But in practice it didn't work like that because by that stage, as long as you remain reasonable, everyone just wants the sale to proceed.

You should definitely negotiate a reduction in price or a deal of some sort. We met out vendor at our second viewing, and personally arranged an agreed price, all seemed very amicable and pleasant.

However, once the survey threw up a few things to be checked (heating/electrics etc) and we wanted to get some checks done, she was very very defensive about the property, and it's ended up that the rest of our sale and negotations has had to go straight through the EA and solicitor, as the relationship was somewhat touchy!

Speak to the EA, as they will be keen to see the sale through, and should be willing to help you out. Don't be bullied, stick to your guns, and get the best result. Don't pay the asking price unless there is some other offer to help with the work to be done

Tell the EA straight out tha tyou cannot get a mortgage unless the work is carried out within 3 months, show them the survey. Tell them you don't have the extra money. tell them you really want the house, but unless the money is deducted from the price or the work is carried out before you buy, you won't be able to buy it & you will be so disappointed.

Let the EA then explain to the vendors, negotiate for you with the risk of losing their sale in mind, and most likely you will find that an acceptable compromise can be reached.

Ary.

Hold on a minute - this is about a wall that isn't even part of a house - any EA will know that the mortgage offer doesn't depend upon it!

Come in all guns blazing on this and they'll just think you are trying it on.

They have said to get it done within 3 months which in lender speak means they recommend it but it doesn't make any difference to the value of the house. So basically tell them what the survey has brought up and ask them to do the work or compromise, but in all reality you don't have to do it within 3 months because it's just a recommendation and your mortgage doesn't depend upon it. If you love the house this issue is not so much a big deal, so tread gently on your negotiations.

Actually, it can be a legal requirement. If the retaining wall if above a car park, then there is a legal liability on the owner if the wall fails and somebody is injured or their property damaged.

My rental flat's owners were forced to carry out remedial works on a retaining wall over their car parking area. The work should have been carrie dout by the people that built the flats but was not done to the required standard, leaving the flat owners liable for the costs and having to organise the repairs first and reimbusement later.

retaining walls at the edges of properties are considered part of the property, and just will have an effect on the valuation of said property.

If, for example, the retaining wall resulted in the loss of half the garden over a cliff, then of course the property as a whole would descrease in value.

Or another example, if the failure of the retaining wall caused a shift in the land supporting the property, it could cause structural problems that require extensive remedial actions.

Thus, the Mortgage Company will definitely consider the weak retaining wall at the end of the property as effecting the amount of money they are prepared to lend on the property. Thus, the purchaser should negotiate for a price reduction for the work if, as they say, they cannot afford to just do the work to satisfy the mortgage company.

Ary.

The poster has already said that this work does not in any way affect his mortgage offer or the valuation, just that they recommend he have the work done within 3 months.