If you are reading this blog, you have probably applied for a mortgage, and the Mortgage Lender has asked for a specialist Timber and Damp Report to support your case.
The blog puts into context why a Timber and Damp Report has been asked for by your Mortgage Lender, questions what you should be thinking as a result of being asked to supply one and covers the method of requesting a Timber and Damp Report.
FREQUENTLY ASKED QUESTIONS ON TIMBER AND DAMP REPORTS TO SUPPORT A MORTGAGE
A) At this stage, it’s too early to say. If the Mortgage Lender were really concerned, they would have rejected the property outright. If you remain keen on the property, we suggest you first obtain the report and then assess the findings.
A) It depends. The majority of people looking to buy the property pay. This is to portray they are committed to the purchase and also as they fear that the Vendor may decide to choose another buyer over them due to this added complication.
My advice would be to speak to the Selling Agents and “test the water” to see if the Vendors are willing to contribute. Appeal to their better nature and particularly if you feel they may have disguised or concealed the issue when you visited. Say if one Mortgage Lender has highlighted an issue, the chances are a second one will too.
A) No, Timber and Damp Reports are not a prerequisite for a mortgage. They are only asked for by Mortgage Lenders following their own basic survey, which has suggested this is a potential area of concern and needs more investigation.
A) It’s a bit like a triage in A&E. They are in the property for 20 to 30 minutes and are tasked with highlighting high-level concerns, putting a value on the property in its current state, and saying whether it is mortgage. Their payment reflects the time spent, and they are not there to fix the problem or research it in depth. In their report, they will make suggestions, such as further investigation on Timber and Damp and leave this to another firm that specialises in the field to assess the potential problem in more detail.
A) The Timber and Damp Report findings must have been serious enough to need correction. Sometimes the Mortgage Lender will want work carried out before they will advance anything (known as full retention), and sometimes, they will hold back a lump sum equivalent to rectifying the problem (part retention).
A) Although this request might seem unfair, it’s important to remind ourselves of the premise of a mortgage rather than other unsecured finance. The reason why borrowing attracts a better interest is the Mortgage Lender can repossess your property if you do not keep up with repayments. They are not Landlords. They are Lenders, so will want to sell the property without complications quickly and recoup their funds.
A) The main areas are damp in the walls, dry rot and woodworm in the timbers. These are concerns that can develop over time if not treated.
A) Dry rot is wood decay caused by fungi. It digests parts of the wood, which give the wood strength and stiffness.
Woodworm is the result of beetle larvy boring through the wood.
They concern the Mortgage Lender as they are degenerative issues that can increasingly put the roof, floorboards and structure of their collateral (the property) at risk.
A) A realistic time frame is one to three weeks. Bear in mind the Vendor may have to take the day off to allow access to the property.
A) Niche Advice has negotiated for its customers via the GoTo Group platform, and the pricing is from £360 Price (including VAT). The exact fee will always be communicated to you upon instruction, where more information can be gathered in regard to the location of the property the value, together with construction type.
Q) Who can carry out a Timber and Damp Report for mortgage purposes?
A) Mortgage Lender will expect the firm to be established and, if they are going to carry out the remedy work, a good track record of standing by their warranties. The Internet and their prior knowledge of the firm are likely to be their primary source of validation.
There are various Trade Associations for Timber and Damp firms but belonging to these has little relevance to some Mortgage Lenders. Others, however, look for set bodies such as the Property Care Association (PRA) for reassurance.
A) Mortgage Lenders like recent information to work from. The use of a Timber and Damp Report is, therefore, likely to be limited to 3 to 6 months, depending on the individual Mortgage Lender.
A) This depends on the individual Mortgage Lender; sometimes, they want the guarantee for the work to last for a set number of years, say five to ten. They might also insist on the guarantee being transferable to a new borrower to protect themselves in the event of repossession.
A) No, you do not need to take a mortgage with us to access our links to our affiliate services.
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