Mortgage without structural engineer's report?

Johngoose

House in rundown condition,auctioneer saying €100,000 offered already.House is in good location.The auctioneer saying he is not entertaining structural engineers report from anybody!The bid they have is from cash buyer.Will bank give a mortgage to me without structural engineer's report?

Johngoose

Thanks for any help

dharma200

who the hell would take out a 100000 loan on a property without a structural report... tell estate agent to go cluck himself

Johngoose

You see cash rich older buyers/builders out there with money ready to go.With pick up in economy auctioneers cocky as *uck

dharma200

I just wouldn't, in all honesty, go for anything like this... the risk is enormous, i very much doubt any bank will give any kind of loan without being guaranteed the property is structurally sound. even if i had the cash, i wouldn't buy anything without a report. It is a must...

Johngoose

Sellers market at the moment.the bidding wars of yore back in full swing...2006 all over again

Johngoose

Thanks dharma.ill probably throw my hat in the ring,but I see what u are saying

coylemj

OP, do you mean the auctioneer will not allow you (a prospective bidder) to send in an engineer at your own expense to check out the place?

If the answer is 'yes' then you'd need your head examined to consider bidding for it. If the place is structurally sound, he should be rolling out the red carpet for surveys as it would increase the number of bidders and push the price up accordingly.

He has has to be acting on instructions from the seller which tells me that there are major problems with the place.

Don't walk, run away.

Johngoose

Hi the answer is yes.Auctioneer pretty much said "I won't be dealing with any structural engineer's reports or any of that." The place has dry rot,needs new floors,etc.Now what I was thinking is all that could be sorted with bigger mortgage than asking price...

coylemj

Johngoose wrote: »

Hi the answer is yes.Auctioneer pretty much said "I won't be dealing with any structural engineer's reports or any of that." The place has dry rot,needs new floors,etc.Now what I was thinking is all that could be sorted with bigger mortgage than asking price...

It's pretty simple really - you're giving the bank a proposition which says that you can buy the place for 'x', spend 'y' doing it up and at the end it will be worth (x+y+n) which will yield a profit. The problem with this model is that the 'y' number is a variable which depends on no hidden faults coming to light after you buy the place and which could make the whole project a black hole leaving you with an unsaleable asset and the bank high and dry. That's why they want a full structural engineer's report.

I'm not sure what the auctioneer is talking about, he doesn't have to 'deal with' an engineer's report, all he has to do is let the guy check the place out.

Trish56

The banks usually only ask for a structural Engineers report if the property is over 100 years old or if the Valuer on their panel request one. If getting a mortgage for a renovation project, you need to submit detailed estimates to the lender and if there is structural work, the work has to be supervised by a qualified Architect/Engineer and the cost of renovation will only be paid in stages.

If you make an offer on the property and wish to carry out renovations well then your builder will have to inspect the property beforehand. Builder would have a good idea if there are any structural defects.

Johngoose wrote: »

House in rundown condition,auctioneer saying €100,000 offered already.House is in good location.The auctioneer saying he is not entertaining structural engineers report from anybody!The bid they have is from cash buyer.Will bank give a mortgage to me without structural engineer's report?