Renegotiating or walking away
What is the difference between a price reduction and a retention held by a lender?
A price reduction changes what you pay the seller. A retention is the lender holding back part of the mortgage until specified works are done. The retention is not cash the seller hands you, and it is not the builder’s quote. They can happen together and they are still different.
Last reviewed 24 October 2026. Written for buyers in England and Wales unless this answer says otherwise. No named surveyor has signed this page. It is general guidance, not a report on your house, and not legal advice.
What is the fuller explanation?
The lender sets a retention from their valuation and their criteria. Your home survey may have prompted questions, but the retention letter is the lender’s. Read what works release the money and whether you must pay for those works before the funds are released. Some buyers find they must fund the repair from savings because the mortgage is short by that amount until the work is signed off.
Do not ask the seller for “the retention” as if it were a discount with that name. Ask for a price change if that is what you want, and understand the retention separately with the broker. There is no standard retention for a rating 3. Anyone who names one without the lender’s letter is guessing.
What should you ask your surveyor?
- Which defects might a lender care about, as distinct from the ones that only affect me?
- Are you able to predict a retention? You should not.
- What wording is accurate if I tell the broker what you found?
What are the typical next steps?
- Wait for the lender’s letter before you describe a retention to the seller.
- Negotiate the price on the survey and the quotes, not on a retention you have imagined.
- Ask the broker how their retention is released. Get it in writing.
Costs vary with the building and with who you instruct. Where this page does not cite a published figure, ask the surveyor, a relevant specialist, or your solicitor for a written quote. Do not treat a forum average as the price.
Also asked about this
Is a down-valuation the same as a retention?
No. A down-valuation is the lender’s value coming in below the price. A retention is money held back for works. You can have either, both, or neither.
Can you use the survey to force the lender’s value?
No. The valuer and the surveyor are doing different jobs. A condition report is not a valuation unless a valuation was instructed.