Mortgage valuation report, I have concerns?
I just received my valuation report on a house I wish to purchase it came up with the following:
* The property would benefit from some works of repair, maintenance and upgrading.
* We would note that some high damp meter readings were obtained during the course of our inspection.
* We would also warn that flat felted roofs have a relatively short lifespan and can fail without particular notice.
* First floor accommodation is poorly arranged
* The applicant is recommended to satisfy himself as the condition of the property, with appropriate professionl advice, prior to legal purchase. He is also recommended to get the services professionally tested, again prior to legal purchase.
* Amount of Recommended Retention (minimum amount is £1000. This is not an estimate of costs. The applicant should obtain detailed estimates before proceeding with the purchase.)
YOU ARE STRONGLY AVISED TO OBTAIN A FULLER REPORT ON THE PROPERTY
I ain’t 100% happy and confident with the property at this point, and going through it. But what worries me is this:
“If you accept this offer, you will not have the right to change your mind and withdraw from the contract after the mortgage starts.”
I may have signed the offer, but I have not signed the legal purchase. What can I do? I’m really worried.
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By MANCHESTER UK, September 27, 2010 @ 8:43 am
Go no further until you have contacted the vendor, pointed out the Valuation Report and reduced the price by the amount the remedial work will cost – unless, of course, the cost reflects the poor state of the building already.
Pob lwc i ti othiwrth Manceinion!
By jed slade, September 30, 2010 @ 7:43 pm
GET A PROPER SURVEYERS REPORT,YOU HAVE JUST HAD A SKETCHY VALLUATION REPORT.OBVIOUSLY THE FLAT FELT ROOF WILL GIVE YOU PROBLEMS,UNLESS MAINTAINED CORRECTLY.
By Beryl F, October 4, 2010 @ 5:02 am
i’m not sure, but i think this site has the answer to this particular question. they’ve got lots of stuff about this anyway.
By paul r, October 5, 2010 @ 12:25 pm
I’m a mortgage advisor I see this everyday. The Surveyor needs to details what they see. A mortgage valuation is just that and is not a full survey, so he will just note what he feels may be an area of concern.
You need to get a damp survey done. I assume the house is older if so worth having done anyway.
Felt roofs again standard as we all know they have a limited life span nothing to worry about.
Never seen first floor accommodation is poorly arranged, strange one, but if you are happy with it don’t worry. Upstairs are normally stud partitions so they can be moved around so to speak
1k retention is reasonable if there are high damp readings.
If you sign the offer it just that you are agreeing with the terms of the offer. If you decide not to buy the house then nothing can be done as you have not signed any legal transfer documents.
Don’t worry feel free to contact me if you need any help.
By korcula, October 7, 2010 @ 10:17 pm
The first para is OK as many houses need this
Second para – get a quote for damp proofing
3rd – Flat felt roofs – this applies to all flat felt roofs and they need maintenance quite a lot over the years – so no problem unless in really bad repair – then get quote
4 – First floor accommodation – are you happy with the way it is set out – you cannot change this nor ask for it to be changed – I assume since you have put in an offer that you are already happy with the way it is set out at present or plan to alter it later
5 They are suggesting that the wiring and everything is safe – ask the seller when he last had new wiring, plumbing etc and if he has any guarantees still valid from this work – I would have this checked at the cost of the seller if doubtful
The retention is what the surveyor is recommding your building society to withold until all requirements have been met to the satisfaction of the surveyor
A full report can be quite costly but sometimes it is better for your peace of mind to have one of these – phone around and check prices – maybe ask for a survey that is a little more detailed than a valuation survey but less than a “full” (expensive) but first have a word with the seller about a reduction in price and have clause in contract that all works have to be carried out (either at his expense or by reduction of purchase price) prior to completion of sale – this way building society/bank will release all mortgage on the day of completion
It may seem like a lot to do but all of this can be completed in a very short time without too much stress
You have not signed for your mortgage yet so you are not commited to this purchase – you do not start paying your mortgage until after completion of the sale – I very much doubt you have even signed the contract of sale/purchase yet as this is not usually signed until a firm mortgage offer has been issued and if you have just received the surveyors report you will not have yet received your firm mortgage offer – if in doubt talk to your Solicitor and he will contact the Solicitor for the seller
By DJ B, October 9, 2010 @ 6:25 am
You are not in the US I gather? Sounds like the property needs some work and if you aren’t willing or in a position to do those repairs I would walk away. They are obviously giving you warning, so take it. Either have a complete property inspection or find another place to buy. I would withdrawn from the offer at this point. If you close the mortgage, you are stuck.
By Colin M, October 9, 2010 @ 11:56 am
The mortgage won’t start until the funds are drawn down for the purchase – they cannot force money on you! What you’ve signed is your acceptance of the terms which will apply if and when the money’s drawn.
The valuation report you’ve received is a “quick” job, designed to see if the property’s worth the sum involved. They don’t think so at present, hence the retention.
It’s not a survey report, which would cost considerably more, which is why they’re quoting that you should get appropriate professional advice. That, in itself, is quite standard.
However, I’d be concerned too, and if I was keen I’d be seeking professional surveyor’s advice ,as well as service testing before committing myself.
Must admit the comment about the arrangement of the first floor is a new one on me – perhaps they’re trying to tell you something they daren’t put in print.
By bluebudgie21, October 10, 2010 @ 1:02 pm
hi!!! i have 3 words of advice” >>>ask your solicitor