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Valuations For Mortgage Companies

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I have had three viewings on a small two bed bungalow. It looks to be structurally sound; has well maintained gardens; is in a rural location and has a terrific view, The price looks to be well below the price of similar properties that are on sale in the location. I also have a big deposit and an offer of a 'mortgage in principle' from the bank.

The snag is that inside, the property is not currently fit to move into. It needs a lot of work doing to it. It needs re-wiring; a new kitchen, a new bathroom; every room needs re-carpeting and re-decorating; a new fire in the living room; a TV ariel; a new outside door to the kitchen and numerous other jobs. The kitchen space is also tiny and it would be very difficiult to fit a kitchen.

I was thinking of buying the property and then continuing to live in rented accommodation for a month whilst I worked on it to get it in a fit state to move into. I would also take some time off work during this month. I could fit the kitchen and bathroom myself and also do the decorating. However, I wouldn't be able to start doing much until it had been rewired and I would need to hire an electrician for that.

I am thinking of putting a very low offer in since several people have viewed the property but no one has yet made an offer.

My question is, what would the Banks valuers make of the situation? Would they insist on jobs being carried out before contracts are exchanged? Would they provide a mortgage for a house that is not currently fit to live in as long as it meets their valuation?

Does anyone know what sort of things happen when a valuation is done? Do the bank then come back to you with a list of conditions?

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You might find the bank hold a 'retention' on the work being done. In other words to make it more difficult, they hold back on some of the money.

Do your research, check the place hasn't been burgled in the past - burglars tend to strike again and again on a property.

Why is the place in a state? Plausible history needed.

Surveys and valuations are a bit of a mystery. Most are 'drive by' in my experience. I had a full survey on a house near Braintree. The pillock missed a walled up staircase. I worked it out by measuring the rooms downstairs and finding them 30" shorter than upstairs. Another house in Yorkshire had a demolition order on it. The surveyor said their was dry rot in the back bedroom floor - the floor bounced up and down cos someone had removed the supporting wall. Once that was rectified it was fine. The demolition order had been put on it in retaliation for the previous owner getting grants to improve the property and then hoodwinking the local council as to whether it was done.

We bought it.The council were so pleased, they gave us loads of grants to improve it, lifting the demolition order immediately they knew we owned it. We made friends with the inspector who was so happy to not be dealing with the usual clients in the area.

The bank wanted to retain £2k of the £7k we wanted. However they relented when I pointed out that we were putting up 45% of the money and they were risking nothing since the land could not be demolished.

Of course this was all a long time ago in 1982 when interest rates hit 15% and the world was in recession. Today that village has been bought out by commuters from York and every house is 20 times the price we paid. I used to drive buses in those days - I wonder how many bus drivers could afford to buy now?

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You might find the bank hold a 'retention' on the work being done. In other words to make it more difficult, they hold back on some of the money.

Do your research, check the place hasn't been burgled in the past - burglars tend to strike again and again on a property.

Why is the place in a state? Plausible history needed.

Thanks. I thought that there might be some sort of difficulty in purchasing a property that is unfit to move into. This doesn't look like the place for me then. I don't want the hassle.

I don't think that there is anything untoward. The property is an estate. The elderley man who lived in it went into a home over a year ago. I think that the property had just got run down. The relatives have taken all the carpets up, and the two bedrooms and main room are now just empty rooms. They would be easy to decorate. The problem is that it needs re-wiring. There is no cooker circuit and few sockets. Also, the owner informed me that the old man used to try to fix things and that there could be some dodgy electric work. The sockets ar e also sticking out of the wall and look dodgy.

I think that the owners will need to get a lot of work done before they can sell it. The may have difficulty in selling it to someone who is buying with a mortgage.

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Thanks. I thought that there might be some sort of difficulty in purchasing a property that is unfit to move into. This doesn't look like the place for me then. I don't want the hassle.

I don't think that there is anything untoward. The property is an estate. The elderley man who lived in it went into a home over a year ago. I think that the property had just got run down. The relatives have taken all the carpets up, and the two bedrooms and main room are now just empty rooms. They would be easy to decorate. The problem is that it needs re-wiring. There is no cooker circuit and few sockets. Also, the owner informed me that the old man used to try to fix things and that there could be some dodgy electric work. The sockets ar e also sticking out of the wall and look dodgy.

I think that the owners will need to get a lot of work done before they can sell it. The may have difficulty in selling it to someone who is buying with a mortgage.

Sounds like the ideal property for me

where is it :-)

tim

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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