trying to buy

[peggy]

Hello
My first post.
Since having our offer accepted on a grade 2 listed terraced town house back in February I have been reading and learning a lot from the discussion forum. We are first time buyers and this has been a steep learning curve. The property has been rented for a long time and requires complete remodernisation, initially daunting but we have committed ourselves to a slow and expensive project with the aim of restoring it well and with integrity.

Internally there is much to do, but it is just habitable. The most pressing (and expensive) repairs being a new roof and render to the front exterior and some timber and damp remedial repairs. All was proceeding well, we met our local co who was very helpful and agreed that we could undertake this work as soon as the purchase had been completed.

Following their valuation the C & G mortgage co requested a copy of our full survey which we sent with a cover letter explaining that it was our intention to do the roof and render straight away and that we have the funds available.

Yesterday our mortgage advisor forewarned us that the offer is going to include a full retention, they wont lend until the work has been done. I havent received the offer yet so dont know what "the work" constites in detail, however we cant do any work till we have bought the house!

The mortgage advisor said there is no point trying other lenders as the result will be the same, he suggested a bridging loan which I dont want to do.

As we have been dealing with the C&G through an advisor I do not have direct contact, is it worthwhile ( once the offer arrives ) talking to them or is no simply no? Should I approach a different lender? We dont want to give up, does anyone see any options here?

 

[Nemesis]

I'd try talking to them directly - and if that's no help, then try a different lender. The threat of pulling out might just bring them to their senses.

It's a nasty situation I agree. Clearly you can't do the work without the funds, and the work will require LBC which will take time also.

The Ecological and the Norwich and Peterborough and Skipton have been useful to posters here in the past. C and G have caused similar problems I recall for others, so maybe this is one company to avoid.

Much may depend on how much you are borrowing, percentage wise.

 

[skier-hughes]

It is worthwhile speaking to them. If you think your advisor is good, it may be best to let him do the talking, if you don't think he'll argue your case, then he may be better being dumped.

He should earn his money, too many just act as an easy bridge from customer to company and get paid heaps for nothing, then when a case comes along which needs customer service they get stuck or can't be bothered..... gggrrrrrr......

If you do approach another lender, ask for more money, so that when they put the retention on you have enough to buy the house, use your own funds to do the repairs, when they release the retention, give it them back, or don't ask for it.

Graham

 

[Flyfisher]

Following their valuation the C & G mortgage co requested a copy of our full survey which we sent with a cover letter explaining that it was our intention to do the roof and render straight away and that we have the funds available.

If you do talk to another lender, it might be better not to mention that you have the funds available for the roof and render repairs. Any lender will want to reduce their risks and I'm sure would be delighted for you to spend your own money improving the propert value before they put any of their money at risk.

 

[Manny]

He should earn his money, too many just act as an easy bridge from customer to company and get paid heaps for nothing, then when a case comes along which needs customer service they get stuck or can't be bothered..... gggrrrrrr......

This is so true. Speak to them directly; don't take the advisors word for anything he's probably just saying what he's saying for an easy life in the hope of some free money.

In my experience (and I don't like to generalise, there maybe some good ones out there) they're a complete and utter waste of time and often make matters worse. If you want something doing properly… do it yourself.

 

[bower1]

You could try http://www.buildstore.co.uk/finance/renovation.html. I think they do renovation as well as self build mortgages, although I have a feeling they are an agent for Skipton and others as Nemesis has already suggested.

No personal experience I'm afraid.

 

[Lime]

Yes, I'd go along with what Manny has said.

Something doesn't ring quite right to me, for instance:-

Yesterday our mortgage advisor forewarned us that the offer is going to include a full retention

That suggests to me that he has been "chatting" to the lenders without consideration of your interests.
Forewarned?
He/she should have found you an alternative lender straight away, not softened you up for the lender's offer.
Their job is to get what YOU want not to convince you that no other lender will be better.
Just who is he/she working for?

they wont lend until the work has been done.

Just run that past me again. What?
Just what has the "adviser" been saying to the lenders?
That is an absurd position to take if you cannot purchase beforehand.
First time buyers don't use bridging loans.
Anyone will tell you who has had to use one that they are very expensive and best avoided at all costs.

The mortgage advisor said there is no point trying other lenders as the result will be the same

how does he know that?
Each lender works slightly differently.

he suggested a bridging loan

Ha Ha Ha that's a laugh.
Well he would as it makes lots more commission.

Don't be fooled.
Your mortgage adviser is working for themselves and C & G (you don't get a look in) and obviously has told to them all your personal details that you have revealed to him including his impression of you.
Why else would a lender suggest a borrower buys a house before they lend you the money unless they thought you could?

Go to another lender yourself and remember they want to lend money, they are not doing you a favour.
It is about your future property, your mortgage and you will have to pay it back so get what you want.

 

[Nemesis]

Another poster said exactly the same about the C and G in the past. I think avoid if poss is the answer.

How on earth are you expected to get work done on a house you don't own?

 

[AMc]

Again I would look for another lender with a more sympathetic attitude - I'm not sure what right they have to your survey if their own valuation has been done, unless it failed to recommend the loan in which case your broker may actually be trying to get you the money against the odds.

I've read The Ecology Building Society well recommended and I would try them first. http://www.ecology.co.uk/html/mortgages/whatlendon.htm A friend used them for a total renovation of a croft house on the Isle of Lewis. They can release funds in stages based on the value of the property as the major works are done.

Also read up here about timber and damp remedial repairs as many of the 'solutions' to these recommended by house surveryors are at best useless and at worst destructive in period homes. If you have a retension based on a injecting a chemical damp proof course and timber rot treatment that is unnecessary you will be forced to vandalise your home to get the money.

Another possibility, one I would not enter into lightly and you should discuss in detail: If you can agree payment terms with the contractors for the roof and render based around the retension you might be able to stage the payments so they get paid when that money comes in. That's only going to work if you have put the money for the repairs aside already and can put it towards the purchase instead to cover the retension shortfall (so fairly unlikely).

Finally if there is a substantial amount of work which isn't reflected in the offer you've made, the retension notice from C&G could be used to negotiate a lower price for the house. Anyone buying will be in the same boat unless they have cash so the vendor might look at a reduced offer if they weren't already aware that the house needed the work.

If you can't make it work then it's better to cut your loses on the expense so far and look again than to force forward with a purchase that you can't afford to renovate.

Good luck with your purchase, it's really hard the first time but it is worth it.

 

[CHRIS]

I had a similar time with C & G whilst going through some brokers, I got so fed up with them I called the local C & G branch and made an appointment to talk to the manager and explained in no uncertain terms I would go with another lender if they did not lend the full amount (95% as first house being purchased in UK), I ditched the broker and went straight to to C & G and saved a few £ on fees (somehow).

It was all sorted in a week or so and went ahead ok. Dont let the "sharpe hair and kipper ties" fool you at the brokers - they are just the same as estate agents and car dealers. they will sell you what they want, not what you want.

 

[peggy]

Thanks to all for your replies and advice.

I feel a little silly for placing such faith in the mortgage advisor, and I mentioned the available funds ( available due to negotiated reduction in purchase price of property following structural survey) in order to reassure the C&G. The impression this might give had not occured to me!

Percentage wise we are borrowing two thirds of the purchase price.

I now have a copy of the mortgage valuation (one side of A4). The summary of which, in answer to the question"..Do you consider the property to be suitable mortgage security...?) Three little words..."...Yes When Done..."

In all the various figures included in the valuation the loan amount is easily covered.

My plan now is to await the arrival of the offer, armed with which I shall endeavour to arrange to meet a C&G person.....in person.

Minefield seems a suitable description for the way the land lies, one wrong step and.................

 

[Nemesis]

Well clearly even as it stands there is no problem finding a buyer... so why are they worrying?

Commiserations - it's all so fraught I agree.

 

[Penners]

Peggy - you've had lots of good advice above. Just to add my vote: I think you're dealing with the wrong mortgage advisor.

In the past I have bought a house that was so wrecked it couldn't be lived in. But I managed to get a mortgage on it. The BS was the Bradford & Bingley.

Why not try talking to a few BSs yourself, rather than using an advisor? Yours sounds pretty useless.

 

[Hannah]

We had the same issues with C&G.
We made an appointment to see them directly yet they still wouldn't budge.
We changed to Birmingham Midshires - after explaining the situation they conducted the valuation and had the offer to us in less that a week.
I've heard many similar stories about C&G, my advise would be to go and speak to some other lenders - they're definitely not all the same.

 

[peggy]

G&G have removed the retention from the mortgage offer, phew....

However...

...My insurance broker is offering me a policy that is indemnity only, and will not insure damage caused by storm until the roof is repaired, I have a feeling that the C&G are going to have an opinion on this..

I am researching other insurance companies that specialise in listed building/older property cover as I am not certain that the policy offered to me would be sufficient cover for like for like reinsatement.

Does anyone have any recommendations?

 

[skier-hughes]

NFU

 

[jocelyn plummer]

We too have had issues with C&G, and there was another posting on this site around Christmas time with similar problems.

We found out the hard way that it is better to deal with C&G direct, not through an Advisor (especially not from the associated Bank).

To be told that it is pointless to try another provider is garbage , you are entitled to shop around to find a deal that suits you. There are other providers, some geared specifically to Period property requirements.

A full structural survey may shut them up-- in fact I think that was the essence of the previously listed gripe with C&G.

Persevere and good luck

 

[Penners]

I know nothing about them, but the Listed Property Owners Club mention the Lark Insurance Broking Group as their "chosen" insurance advisor. Have a look here.