The short answer
A mortgage retention is a sum the lender withholds from the loan at completion because its valuer found a defect, such as a roof in poor condition. The money is released once the repair is done and the lender is satisfied, usually on proof of the work, such as an invoice, photographs or a revaluation. You must still find the withheld money to complete the purchase.
How a retention arises
When you apply for a mortgage, the lender instructs a valuer to check that the property is sound enough to lend against. If the valuer sees a defect that affects the value or the safety of the property, they may recommend that the lender holds back part of the advance until it is fixed.
Roofs are a common trigger because they are visible from the street and costly to put right. The valuer may note slipped or missing slates or tiles, a sagging ridge, a damaged chimney, damp staining on a ceiling, or a flat roof that is past its best. They may also describe the roof as worn out, and what that phrase means is explained separately.
The retention is written into the mortgage offer. The amount is the lender's judgement of what the work should cost, and it may be more or less than a roofer's price, so it is worth getting a quote that reflects the actual job. The lender will want a roofer's report or invoice before it releases anything, so keep every document.
What it means for the buyer
A retention is not a refusal. The lender has agreed to lend, but is holding back a slice of the money, and you still need the whole price to complete. That means the buyer has to find the retained amount from savings or by negotiation, and then recover it from the lender after the repair.
That has practical consequences. If you do not have spare cash, a retention can stall the purchase. If the seller is willing, you might negotiate a price reduction, or ask them to carry out the repair before completion so the retention is not needed. Some lenders will drop or reduce a retention if the work is done before completion and the evidence is supplied.
Do not ignore the roof. A retention often signals a real problem, and the buyer should know what it is. A roofer's inspection tells you what is wrong, what the repair would involve and whether the lender's figure is realistic. Our free survey produces pictures of your roof and a written fixed price, the kind of paperwork a lender expects. Our page on the pre-purchase roof survey explains how a roof is assessed before you buy.
How to clear it
The route is the same in most cases, though each lender has its own forms and rules, so ask yours what it needs.
- Get the valuer's wording. Ask your solicitor or broker for the exact defect the valuer noted and the amount held.
- Have a roofer inspect the roof. The inspection should address the valuer's point specifically, and photograph it.
- Obtain a written quote. It should describe the work, so the lender can see it answers the defect.
- Do the work. Match the covering where the roof is older. A natural slate roof repaired in natural slate is a better answer than a patch in something else.
- Collect the evidence. Dated photographs before and after, the invoice, and any guarantee. Our page on roof photos before work explains what makes a useful set.
- Send it to the lender, through your solicitor or broker, and ask for the retention to be released. Some lenders will instruct a valuer to revisit the property.
Allow time for the lender to process the evidence. The retention is released only after the lender is satisfied.
Choosing who writes the report
A lender will usually accept a report and invoice from a roofer for a repair retention, though its wording sets the rule, and for some it asks for a chartered surveyor's opinion. Ask first, because commissioning the wrong report costs time.
Where the lender accepts a roofer, the document should say what was wrong, what was done and that the roof is now sound. It should be dated and carry photographs. If the roofer gives a written workmanship guarantee, include a copy; it is a promise about the work and not an insurance policy, but it gives the lender and your solicitor something more to file.
Where the lender wants an independent view, a chartered surveyor can provide it, and roofer or surveyor explains the difference. In either case, a good pre-work report makes the post-work evidence easier, because the two sets of pictures match.
If the valuer has found a flat roof at fault, the inspection should follow the structure described on our roof inspections hub, covering the membrane, the falls, the edges and the deck.
Avoiding trouble, and what else to check
Several things go wrong in practice. A repair done cheaply to match a retention figure may not satisfy the lender if it does not address the actual defect. A repair done by someone who leaves no paperwork leaves you with nothing to send. And a repair done after completion, without telling the lender, can leave the retention in place.
Landlords can meet retentions too, on a buy-to-let purchase. Our page on landlord roof inspection explains how a landlord keeps a roof in a state that satisfies a lender and a tenant.
If the house is old or listed, find out what consent applies before any work starts. Bath is a World Heritage Site throughout, about half of the city sits inside the conservation area, and B&NES Council issues listed building consent. Re-roofing work above a certain size also needs Building Regulations approval: not normally for work affecting less than 25% of the building envelope and less than 50% of the roof. Ask your building control body if you are unsure.
Any consent question is settled with you before work begins, and the price is put in writing once the survey is done.
