If the house survey says new roof required..

[ShaneH 10]

Appreciate someone in the know to answer this for me...

 

Should our new house need a new roof and the seller agrees to drop the price, does the saving come off your cash deposit or the mortgage?

 

Cheers

Shane

[siwid 12]

Both really

 

Currently buying and by no means an expert but my understanding is as follows

 

If you're buying for £100000 and your deposit is £10000.

 

The the seller takes off £2000 for the roof.

 

Then your buying for £98000 with a deposit of £9800

 

You've still got a loan to value of 90% but your deposit has gone down by £200 and your left with £88200 to pay back as a mortgage instead of £90000

 

You might be able to come to some kind of special arrangement if your mortgage provider and the seller are flexible but pretty sure the above is standard.

[dongle 10]

Better off asking them to get the roof done before you complete

[allianceroof 10]

The fair way is to split the cost 50/50 that's the way it works with our customers

[Jeffrey Shaw 90]

Appreciate someone in the know to answer this for me...

 

Should our new house need a new roof and the seller agrees to drop the price, does the saving come off your cash deposit or the mortgage?

 

Cheers

Shane

A price reduction comes off the total price, of course.

Your solicitor or you should notify your mortgagee (lender) which will then decide whether- and by how much- it is going to reduce the mortgage advance offered. So if the advance is unchanged, the reduction comes off your own contribution to the total price.

[ShaneH 10]

A price reduction comes off the total price, of course.

Your solicitor or you should notify your mortgagee (lender) which will then decide whether- and by how much- it is going to reduce the mortgage advance offered. So if the advance is unchanged, the reduction comes off your own contribution to the total price.

 

thanks Jeffrey

[slater 10]

Better off asking them to get the roof done before you complete

 

Agree: More often we find its the seller that’s puts the roof in order before they sale.

[Craig_ 10]

However, there are some advantages of the price reduction route:

 

- the buyer can undertake the work in their own time, choose their own roofer and have more control over the standard of work.

- the buyer can incorporate any changes he/she wishes into the new roof - such as velux windows, increased insulation etc.

- the buyer may be looking for a lower purchase price/mortgage so may prefer the reduction (stamp duty threshold etc.).

 

Usually, if the work is not assumed as part of the original sale then the seller should bear the majority of the cost through a negotiated reduction - otherwise, it's actually a price increase for the buyer. Sale price less agreed reduction plus cost of new roof.

[Lynchee 10]

Better off asking them to get the roof done before you complete

 

But what if they do a shoddy job?

[scottf 21]

The fair way is to split the cost 50/50 that's the way it works with our customers

 

Why should the buyer pay for the roof? If the seller wants to sell the house then they need to have the work done?

 

You wouldn't buy a car that needs a new engine would you?

[Jeffrey Shaw 90]

The purchaser might want a particular type of roofing, i.e. more than just a basic repair.

But the vendor cannot be made to pay for it. The vendor's sale price has just to reflect the property's value as is.

[gravity426 10]

Why should the buyer pay for the roof? If the seller wants to sell the house then they need to have the work done?

 

You wouldn't buy a car that needs a new engine would you?

 

I've not read a survey yet that doesn't contain the words 'the roof is coming to end of its life' its a standard statement to cover the surveyor for houses that are not new build or haven't had a new roof recently.

 

Sellers (atleast the sensible ones) wont get the work done simply because as the buyer you have no obligation to go through with the sale even after the work is complete. Roofs come up time and time again, usually a general repair is needed and the seller knocks off a few hundred to reflect this.

 

If you viewed the property before agreeing a price you had ample opportunity to see the condition of the roof, if it is watertight and isn't causing damp then I see little justification is asking a seller to fork out for a roof the buyer will then see the benefit of for 20+ years.

 

my 2 pence anyway.

 

---------- Post added 30-07-2013 at 15:37 ----------

 

The purchaser might want a particular type of roofing, i.e. more than just a basic repair.

But the vendor cannot be made to pay for it. The vendor's sale price has just to reflect the property's value as is.

 

quite. The simple way to decide what to expect from the seller is to look at the valuation carried out by the surveyor. If it is in line with the agreed sale price, then the bank/surveyor believe the house is worth what you are paying before any work is done.

 

If the valuation is lower then thats different.