Buying a house 2012

Verte11 · 13-03-2012 6:16pm

Cheers Killers. We'll need to start paying you. My surveyor wont do an estimate because he says it's a specialist job. I got a company to email me a quote which was for around 2500. I have the cash so I hope that'll do the job. Just a bit paranoid now about the asbestos. I'd love someone to say' its grand you could leave that for a few years and replace it then' . I can't be arsed to renegotiate as there was already another offer of the same amount on property but the other bidder had probs with bank getting mortage so they took my offer. Jesus buying a house is well stressful I tell ya. I need a drink and it's only 5.15!

killers1 · 13-03-2012 6:27pm

Verte11 wrote: »

Cheers Killers. We'll need to start paying you. My surveyor wont do an estimate because he says it's a specialist job. I got a company to email me a quote which was for around 2500. I have the cash so I hope that'll do the job. Just a bit paranoid now about the asbestos. I'd love someone to say' its grand you could leave that for a few years and replace it then' . I can't be arsed to renegotiate as there was already another offer of the same amount on property but the other bidder had probs with bank getting mortage so they took my offer. Jesus buying a house is well stressful I tell ya. I need a drink and it's only 5.15!

You'll definitely need to start paying me now! Good timing! I was talking to a Structural Surveyor a few mins ago (on a different matter) so thought I'd ask his opinion on the asbestos. He said that if the roof is in generally good condition it is perfectly safe. He said he wouldn't advise drilling holes or anything in it as you don't want to disturb the fibres. If you decide further down the road to have it removed you need a firm with a specialist licence to dismantle, take it away and it actually get's sent abroad to be destroyed. Under no circumstances attempt to do this yourself! He said it's not unsafe in the slightest if in good condition. The fact that it's only going to cost €2,500 to replace & you have the funds this won't be an issue for the bank and I'm pretty confident they'll allow you to proceed as is. When something is highlighted like that on a valuation report they just want comfort around the fact that it's not going to cost €50k to replace and would effect their ability to re-sell the property in the event that you defaulted. He said it is very common in roofs prior to the 1980's when the dangers of asbestos were highlighted... Think you'll get over this hurdle easily enough....

Verte11 · 13-03-2012 9:41pm

Thanks for that. I really appreciate it. I hope it gets sorted tomorrow. Hopefully they'll accept this quote from asbestos company. Having a brandy now to calm self down. Any excuse

killers1 · 13-03-2012 9:54pm

Verte11 wrote: »

Thanks for that. I really appreciate it. I hope it gets sorted tomorrow. Hopefully they'll accept this quote from asbestos company. Having a brandy now to calm self down. Any excuse

With the cost only being €2,500 the bank won't have an issue. Enjoy your brandy! Let me know once it's been satisfied by the Bank. If they come back with any further queries let me know as a Surveyors letter ( doesn't have to be the one you used) confirming property is safe if roof is in good condition would suffice..

nemo32 · 14-03-2012 10:30pm

Contracts are finally in the solicitors... Yipeeee!!!!!
Need to get the gas and lecty turned back on now before I get my survey done.
Anyone know how much the reconnections usually cost and do they need to have access inside the house to reconnect?

killers1 · 15-03-2012 12:25am

nemo32 wrote: »

Contracts are finally in the solicitors... Yipeeee!!!!!
Need to get the gas and lecty turned back on now before I get my survey done.
Anyone know how much the reconnections usually cost and do they need to have access inside the house to reconnect?

Maybe I'm missing something here (haven't read your previous posts on this) but I take it you are the purchaser?? If so, why the hell are you arranging for the gas & lecky to be turned on? That's the owners responsibility....

nemo32 · 15-03-2012 12:28am

killers1 wrote: »

Maybe I'm missing something here (haven't read your previous posts on this) but I take it you are the purchaser?? If so, why the hell are you arranging for the gas & lecky to be turned on? That's the owners responsibility....

House is owned by the Bank and they have said they will take the cost of turning these things back on off the price of the house etc. As the original owners have been out of the house since Sept.

killers1 · 15-03-2012 12:34am

nemo32 wrote: »

House is owned by the Bank and they have said they will take the cost of turning these things back on off the price of the house etc. As the original owners have been out of the house since Sept.

That makes sense and sorry if I could've read that previously! Main thing is your not paying for it and that's what struck me when I read your last post... No idea of reconnection costs I'm afraid...

nemo32 · 15-03-2012 10:15am

So my next question is.......
They are saying our closing date will be 20th April. When will our first mortgage repayment come out if we close on that date? Are the banks flexible with the withdrawal date at all?

killers1 · 15-03-2012 10:18am

nemo32 wrote: »

So my next question is.......
They are saying our closing date will be 20th April. When will our first mortgage repayment come out if we close on that date? Are the banks flexible with the withdrawal date at all?

Who's your mortgage with?

nemo32 · 15-03-2012 10:33am

killers1 wrote: »

Who's your mortgage with?

AIB

killers1 · 15-03-2012 10:45am

nemo32 wrote: »

killers1 wrote: »

Who's your mortgage with?

AIB

You can specify the date on the DD mandate that you want your repayment to come out monthly. If you're closing on the 20th April your solicitor will drawdown funds a day or two beforehand so technically your first repayment is due around 19th May. If you want it to come out on the 1st monthly the first repayment would be 1st June. Learpholl had the same question a few pages back on this thread about mortgage repayment dates etc which should clear it up for you...

nemo32 · 15-03-2012 11:22am

killers1 wrote: »

You can specify the date on the DD mandate that you want your repayment to come out monthly. If you're closing on the 20th April your solicitor will drawdown funds a day or two beforehand so technically your first repayment is due around 19th May. If you want it to come out on the 1st monthly the first repayment would be 1st June. Learpholl had the same question a few pages back on this thread about mortgage repayment dates etc which should clear it up for you...

Great thanks Killers, your quick replies are brill

Yeah I would prefer end of mth or even right at the start.. Tks again

killers1 · 15-03-2012 11:52am

nemo32 wrote: »

killers1 wrote: »

You can specify the date on the DD mandate that you want your repayment to come out monthly. If you're closing on the 20th April your solicitor will drawdown funds a day or two beforehand so technically your first repayment is due around 19th May. If you want it to come out on the 1st monthly the first repayment would be 1st June. Learpholl had the same question a few pages back on this thread about mortgage repayment dates etc which should clear it up for you...

Great thanks Killers, your quick replies are brill
Yeah I would prefer end of mth or even right at the start.. Tks again

No problem, the emails come through to my phone so if I have a minute I'll send a quick response. Just make sure you specify the date you want it to come out when you fill out the DD mandate otherwise you'll need to do a letter to that effect further down the road...

Verte11 · 16-03-2012 4:11pm

Any ideas on this one anyone? I had to provide quotes to the bank for repairs that needed to be done,totaling 3000. Now they are issuing me a revised offer letter saying that they are giving me my mortgage amount minus the 3k, to allow the sale of the house to go through so for example 197 instead of 200. I can draw down the 3k once I prove I've had the repairs done. Slimy bank c**nts.Excuse me. They are making damn sure I do those stupid repairs that dont actually need to be done or else they are trying to not give me a mortgage. Does anyone know if I can appeal this? Will I have to fund the 3k out of my savings to allow the sale of the house to go through?
I have the money for those repairs in my savings account.If I have to fund the purchase of the house wiht them I wont actaully have the money to do the repairs. So in effect are they stopping me from doing the repairs? Has anyone else been in this situation? Do they definitely ask you to show that you have done the repairs,and within a certain time frame? Could I just fund the 3k myself and not do the repairs or will they still ask for proof. So annoyed

killers1 · 16-03-2012 5:09pm

Verte11 wrote: »

Any ideas on this one anyone? I had to provide quotes to the bank for repairs that needed to be done,totaling 3000. Now they are issuing me a revised offer letter saying that they are giving me my mortgage amount minus the 3k, to allow the sale of the house to go through so for example 197 instead of 200. I can draw down the 3k once I prove I've had the repairs done. Slimy bank c**nts.Excuse me. They are making damn sure I do those stupid repairs that dont actually need to be done or else they are trying to not give me a mortgage. Does anyone know if I can appeal this? Will I have to fund the 3k out of my savings to allow the sale of the house to go through?
I have the money for those repairs in my savings account.If I have to fund the purchase of the house wiht them I wont actaully have the money to do the repairs. So in effect are they stopping me from doing the repairs? Has anyone else been in this situation? Do they definitely ask you to show that you have done the repairs,and within a certain time frame? Could I just fund the 3k myself and not do the repairs or will they still ask for proof. So annoyed

Hi Verte11, are you at 92% loan to value on your existing loan offer?

Verte11 · 16-03-2012 5:12pm

90%

killers1 · 16-03-2012 5:15pm

Verte11 wrote: »

90%

Ok, they are being quite fussy about this. If you take €3k off your purchase price and keeping the loan amount the same what does that leave your loan to value at exactly? Did you see a copy of the valuation report? Did the valuation come in at the purchase price? What exactly did the valuer note in relation to the roof?

Villa05 · 16-03-2012 5:20pm

Is there anybody else fearful for people who buy now, 3 months before the property price database is up and running in June/July.

Absolute continuation of property obsession madness

Verte11 · 16-03-2012 5:20pm

I'm a bit crap with the LTV stuff so not sure. House is 160. so loan of 144. Yeah saw a copy of it. It listed asbestos flat roof as urgent repair. Also phoned valuer and he was an ass. Stood by his report and said my surveyor should have pointed it out.

killers1 · 16-03-2012 5:23pm

Verte11 wrote: »

I'm a bit crap with the LTV stuff so not sure. House is 160. so loan of 144. Yeah saw a copy of it. It listed asbestos flat roof as urgent repair. Also phoned valuer and he was an ass. Stood by his report and said my surveyor should have pointed it out.

Did the valuation report say the current market value of the property is €160k or the value in repair is €160k? Sorry for all the questions, I'll be able to explain their thinking on it for you but just want to see how best you can go about appealing this..

Verte11 · 16-03-2012 6:00pm

They said it was current valuation price:160 Valuation price on completion of essential repairs : 160

killers1 · 16-03-2012 6:22pm

Verte11 wrote: »

They said it was current valuation price:160 Valuation price on completion of essential repairs : 160

Ok here's what I suggest you do, email, fax or write the following to whoever is looking after your mortgage in AIB;

Re/ Property address....Loan A/c No.....

Dear Sir/Madam,

I refer to the above captioned homeloan and in particular your decision to re-issue a loan offer for a reduced amount of €141k as a result of an item raised by the Valuer on his valuation report. Please note I am aware that it is AIB's policy to lend up to 92% of the contract price or the valuation report whichever is the lessor. Even though your Valuer has indicated a current market value of €160k the costs of works involved in replacing the asbestos roof which is in a satisfactory & safe condition amount to €3k as per quotes I have submitted. The value in repair on this property as such has reduced to €157,000 despite your valuer still confirming it is worth €160k in it's current state. If you still need to issue an amended loan offer please issue an amended loan offer to reflect the value in repair i.e. €157k and keep the loan amount at €144,000 which is still less than 92% of the contract price of €160k & the Value in repair of €157k and is within AIB's lending policy. As you can see I have sufficient funds to complete the purchase and also sufficient funds to carry out the works required in due course.

Yours etc...

Try this and see how you get on...

What they are basically offering to do is to give you €141k so you would need to put an additional €3k from your savings to complete the purchase i.e. €19k instead of €16k. You would then arrange for the builders to come in and repair the roof. Once the work is completed you get the original valuer out to confirm that the works have been completed. He then gives AIB confirmation that the works are completed and they will release the €3k that you pay over to the builder for repairing the roof. At the end of the day the only difference is that you put the €3k you were planning to use for the roof repairs at some time in the future towards completing the purchase and then once the repairs are done the bank are paying for the repairs. You would probably need to do the works within 6 months or so to be able to still drawdown the €3k and the new loan offer will tell you how long the €3k will be available for. Try my method first and if they are still reluctant to give you the €144k up front then what I have just outlined is how it will work in reality.... hope this helps...

Verte11 · 16-03-2012 7:40pm

You are like the mortgage God. Thanks a million. I'm with Bank of Ireland think they only do 90% mortgages how do change the letter?

killers1 · 16-03-2012 8:11pm

Verte11 wrote: »

You are like the mortgage God. Thanks a million. I'm with Bank of Ireland think they only do 90% mortgages how do change the letter?

Ah ok, because you're with BOI this won't work because they only do 90% loan to value and won't exceed this level. It would have worked out if you had an AIB loan as they could have gone to 92% ltv. The way BOI are looking at this is that even though the contract price is €160k effectively the property is only worth €157k because there is €3k of works that need to be carried out. If they were to lend you €144k against a property they are valuing without the works being completed at €157k they would be at 91.7% LTV which is outside their policy (144/157 = .917 x 100 = 91.7%) They need to keep the loan below 90% at all times. The best way forward is to take the €141k they are offering. Then put the extra €3k from your savings to complete the purchase i.e. €16k (you thought you had to put towards it) + additional €3k as you are now €3k short so €141k + €3k +€16k = €160k. Then once you have moved in you can arrange to have the works done. As I said you may have up to 6 months or a year to do the works. It should specify on your new loan offer how long you have to drawdown the additional €3k. Once they are completed you arrange for the original valuer to come in to confirm to BOI that the works have now been completed and it is in order to release the additional €3k to pay for the roof repairs. At the end of the day you will have in effect paid €19k of your own money to buy the house and have the works done. This is the same amount you would have spent if they had lent you €144k and you had to pay for the work to be done out of your money. A little bit of swings and roundabouts but the fact that they can't go above 90% ltv is why they are insisting doing it that way... Sorry for getting your hopes up (silly of me to presume you had an AIB loan!) but I hope you understand the rationale behind it and understand that overall you are not out of pocket once you have the work done and drawdown the other €3k because ultimately you will have spent €19k of your money and borrowed €144k in total...

Learpholl · 16-03-2012 9:51pm

Verte, surely you should be going back to the seller of the house and letting them know that the bank will not issue the loan for the agreed price due to the asbestos roof and they will need to reduce their price for the sale to go through. I would be very surprised if the sellers were willing to walk away from the sale for the sake of 3k.

My engineer spotted an issue with the drainage before I purchased and I went to the auctioneer and told them my solicitor advised me not to go ahead with the purchase until the drainage issue was fixed. So then the seller went away and done the necessary repair works to the drainage system. And although it was frustrating having to wait that bit longer for the work to be done, it was worth it in the end to know that we wouldn't face issues with it.

killers1 · 16-03-2012 10:03pm

Learpholl wrote: »

Verte, surely you should be going back to the seller of the house and letting them know that the bank will not issue the loan for the agreed price due to the asbestos roof and they will need to reduce their price for the sale to go through. I would be very surprised if the sellers were willing to walk away from the sale for the sake of 3k.

My engineer spotted an issue with the drainage before I purchased and I went to the auctioneer and told them my solicitor advised me not to go ahead with the purchase until the drainage issue was fixed. So then the seller went away and done the necessary repair works to the drainage system. And although it was frustrating having to wait that bit longer for the work to be done, it was worth it in the end to know that we wouldn't face issues with it.

Hi Learpholl, yeah that was suggested a few pages back and is certainly an option. I think there was an under-bidder who may still be interested in the property and problem is that if someone is willing to offer the current asking price and is borrowing less than the 90% ltv the roof wouldn't really be an issue for them as the bank wouldn't be insisting that it is repaired. As far as I can tell it's in good condition as is. In your case the surveyor probably pointed out the the drains should be serviced and any blockages removed. This probably only cost a couple of hundred Euro as opposed to €3k in this case so the owner might just go back to the previous bidder to see if they are willing to pay the €160k... It's certainly worth asking the vendor though to drop the price and produce a copy of the valuation report & estimates to back this up...

Verte11 · 16-03-2012 10:11pm

HI Learpholl. What you're saying makes sense.
Killers, thanks again that makes sense too!

Verte11 · 16-03-2012 10:18pm

Yeah but scared of losing property. The other bidder was offering same amount but I appeared more 'ready to go' with mortgage. If I mess around with sale price they are likely to go back to that bidder- if they're still around that is. Still, it's not something I'm confident enough to do. In the meantime if I get my engineer to verify that he doesn't think the roof needs replacing then that might counteract what the valuer said.He's willing to write a letter saying he doesn't think it needs replacing. Now whether they definitely accept that is another thing.

killers1 · 16-03-2012 10:25pm

Verte11 wrote: »

Yeah but scared of losing property. The other bidder was offering same amount but I appeared more 'ready to go' with mortgage. If I mess around with sale price they are likely to go back to that bidder- if they're still around that is. Still, it's not something I'm confident enough to do. In the meantime if I get my engineer to verify that he doesn't think the roof needs replacing then that might counteract what the valuer said.He's willing to write a letter saying he doesn't think it needs replacing. Now whether they definitely accept that is another thing.

The more I think about it the more I think you should fight your battle with BOI to give you the €144k. At the end of the day the valuer (their valuer!) has valued the current market value of the property @ €160k and the value on completion of the repairs at the same figure. So, there should be no reason for BOI to reduce your loan amount as the loan to value is still 90% & within their policy. I can see where they are coming from but they lose a huge part of the argument by the Valuer not having noted a lower value on the property before the works are done. Get a letter from your Structural Surveyor confirming the works are not essential and then raise the issue that the Bank's valuer has confirmed that the property is suitable security for the loan and that it's current value (in it's current condition) is €160k. They don't have an issue with giving you €144k as you've already had a loan offer at that amount so you just need to convince them as outlined above and using the actual val report & surveyors letter to prove your case...

Buying a house 2012

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