Advice needed on renegotiating price after survey

[Haylo]

Background - house is 100+ years old, has been reposessed, large, needs renovation, good price but getting toward our upper limit, house for family for next 15-20 years.

Have had full survey (although estate agent said it probably wasn't worth it), found has some fairly considerable work (£20k ish) required to make roof water tight and stop damp rising from the cellars.

Our offer was subject to survey, we now need to renegoatiate a purchase price. However vendor (in this case bank) being a bit cagey about what they think we should have been 'aware of' before the survey ie: we should have known the roof needed work ... doh ... of course but you never know how much until a surveyor takes a look and you don't pay £1,500 to have one until you have an offer at least accepted.

All in the house needs rewire, new boiler and heating system, couple of new windows and this damp/roof work before this winter - probably £35-40k for my family to be dry, warm and have electrics - then we need to prioritise rest of sash windows, kitchen, bathrooms etc etc , but this is a long term home and project, so it will not happen over night.

We have nothing to sell - renting our home and have tenants itching to move in, we have mortgage offer and funds ready to go, no one else is interested in the property at all .... would you play hard ball and try for a larger than £20k discount ???? advice appreciated on dealing with a 'face less' bank.

[dooit]

What value did the surveyor put on the house though? Not just the cost of the work to be done. You should be guided by that.

If the house is in serious disrepair it will have been priced to reflect this already, as opposed to a well presented house that has hidden problems lurking.

They usually tell you their opinion of it's current value depending or state of repair and current market etc.

You should be realistic in realtion to what you are prepared to pay.

[youcannotbeserious]

Do you know how much the debt is?

I'd reckon as long as the bank are going to recoup their money, they'll sell rather than risk losing the sale.

So, yeah, go for £20-30K off.

[dooit]

Also repossessions are usually priced very low as compared to private sales so I would imagine it would be very competitively priced to begin with Banks usually just claw back the cost of the debt if they can with need to make huge profits.

For some reason renovation projects seem to hold their price well. People like the idea of getting a bargain (even if it may not be in reality) and renovating to make a huge profit (or not as the case may be).

When we bought our previous house to renovate (c1875,large wreck)4.5 years ago we reduced the offer by 8k following survey. Like your house it needed the full monty, windows throughout, rewiring, boiler, central heating, plastering top to bottom, new bathrooms, kitchen, you name it, it needed it!

[dooit]

should read with NO need to make huge profits.

[Haylo]

We know what the property was bought for in 2003 and have a current agreed purchase price of 4% below that, so in reality it is priced to sell and valued with its current condition in need of 'the full monty'. We do not know what the current outstanding debt is, whether the previous owner had a 100% mortgage or not we just don't know, the price is considerable so l am thinking not, do you know how we could find out ??

However l just think with the current market and lack of punters like us willing to take a huge project on, with an agreed mortgage and no chain we can push it a bit . They can only say no can't they !

[youcannotbeserious]

A sizeable propety is unlikely to have had more than an 85% mortgage.

So, yeah, I'd chance it. THis is a dead duck to the bank. They need to sell it. For as much as possible, I grant you, but they need to sell and, as long as they make some sort of profit, they'll take the sale.

So, assuming 85% mortgage, and you are already 5% under the 2003 price, I'd pitch somewhere in between.

It's worth having a punt... They CAN say no, and you can up your offer. This is a bank and they aren't going to get emotional about it.

Good luck!

[ihatebikerides]

In some ways, it should be easier to haggle with a faceless bank than if it were, say, a little old lady who you'd met and felt sorry for as you were viewing.
This is a business transaction, pure and simple, for both you and the bank. Get negotiating!!!