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retion on remortgage

(4 Posts)
jes66 Wed 08-Jun-11 22:29:04

I have obtained a remortgage and the valuation report has come back stating " the property has suffered from differential movement with dropping down to the right hand side of the gable wall. There is some cracking in the party wall and to the front of the property which may well be longstanding, however I feel it prudent to obtain a Structural Engineers report to clarify that.' It also states 'The property has suffered from structural movement although it has been internally refurbished to a good standard but the cracking externally could indicate some ongoing movement that would need to be checked.'
He has put a £8000 retention on the property as well as downvaluing it by £20k - ££12k once retention is lifted. When I bought the property in 2006 the survey brought up evidence of movement but not ongoing, this was stated again when I remortgaged it 2 yrs ago.
Does this mean they will offer me a mortgage but only after a satisfactory report is obtained and any work carried out if necessary.
The prop is a semi built circa 1890 and has previously had satisfactory mining searches.
It's a remortgage and I have asked for an extra £10k for home improvements, if the report stated £x work needs doing to prop would they lend me the amount less retention then pay me the £8k once work done, or would I have to get the work done before they lend any money, hope this makes sense, and thanks

BarkingHarriet Wed 08-Jun-11 22:42:49

IMO (as an ex mortgage advisor) the surveyor is covering his own back. Bottom line is you'll need to get the report if you want the money - if as you say it's longstanding then there probably won't be a problem and they'll release the funds. If, however, the report makes any recommendations then you'll probably have to get those done before they will release the retention. Don't know how much structural engineers reports are nowdays I'm afraid!

Hth.

jes66 Wed 08-Jun-11 22:49:19

Thanks Harriet, would I have to get the work done before they released any of the funds? My worry is if they say £3k of work needs doing I can't afford to get it done until I receive some money, or would they just retain the £8k.

BarkingHarriet Thu 09-Jun-11 12:51:32

Depends on the underwriter, I would imagine they would want to see the structural engineers report to establish whether there's a problem first, then if it's all long standing they might release the £8, if it needs work they might want this doing before they release anything. Sorry.

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