Mortgages, short-term neighbour agreements and valuation
Discussion
Slightly odd one, but was wondering if any of the brokers on here could shed any light on the implications (if any) that the potential for a future change in neighbour agreements might have on the ability to secure a mortgage on a property?
The specific house is one where, from a drive by/Google street view, it appears to have access to additional off-street parking but in reality access is only available by agreement of a neighbour (over whose land it is accessed). There would obviously be a valuation difference with/without the off-street parking.
I reckon an easement could be obtained for not too much money, but the current owner doesn’t seem to have formalised things with their neighbour in that way (just yet) and doesn’t seem keen to do. As a result it seems like there’s a risk there that a new purchaser could have a gun held to their head at some point in the future.
AIUI, a mortgage valuation is still usually done relatively early in the process but what I don’t know is 1) whether the valuer would be made aware of this issue by the vendor/purchaser (if not they probably won’t spot it?); or 2) whether the mortgage lender receives any sort of issues/title report from the conveyancing solicitor prior to the offer being finalised and what their reaction would most likely be to learning that there was an issue like this.
It’s not a property that I want to buy, but friends might so trying to find out if they’re wasting their time/money if the vendor (who has marketed/priced on the basis that is has this extra parking) won’t sort an easement and, even if they were ok with the risk of dealing with the access issues down the line, it’d just get knocked back by the mortgage lender, potentially at quite a late stage when they’ve incurred lots of cost?
Any insight into how this could play out with a lender would be really appreciated.
The specific house is one where, from a drive by/Google street view, it appears to have access to additional off-street parking but in reality access is only available by agreement of a neighbour (over whose land it is accessed). There would obviously be a valuation difference with/without the off-street parking.
I reckon an easement could be obtained for not too much money, but the current owner doesn’t seem to have formalised things with their neighbour in that way (just yet) and doesn’t seem keen to do. As a result it seems like there’s a risk there that a new purchaser could have a gun held to their head at some point in the future.
AIUI, a mortgage valuation is still usually done relatively early in the process but what I don’t know is 1) whether the valuer would be made aware of this issue by the vendor/purchaser (if not they probably won’t spot it?); or 2) whether the mortgage lender receives any sort of issues/title report from the conveyancing solicitor prior to the offer being finalised and what their reaction would most likely be to learning that there was an issue like this.
It’s not a property that I want to buy, but friends might so trying to find out if they’re wasting their time/money if the vendor (who has marketed/priced on the basis that is has this extra parking) won’t sort an easement and, even if they were ok with the risk of dealing with the access issues down the line, it’d just get knocked back by the mortgage lender, potentially at quite a late stage when they’ve incurred lots of cost?
Any insight into how this could play out with a lender would be really appreciated.
I think lenders and valuation surveyors are quite obtuse about practical matters like parking.
They will give high values for houses which have no parking at all.
If you have two houses in a street, one with ample parking and one with just one space, the values according to the 'experts' are often very similar.
They will give high values for houses which have no parking at all.
If you have two houses in a street, one with ample parking and one with just one space, the values according to the 'experts' are often very similar.
Thanks for the replies. Helpful, but does anyone know definitively if either a valuer or lender will take this sort of (potential) impairment into account?
They don't want to get close to the finish line and then have a last-minute down valuation or the lender knock it back if they get/see it is mentioned in a conveyancing report.
They don't want to get close to the finish line and then have a last-minute down valuation or the lender knock it back if they get/see it is mentioned in a conveyancing report.
Gassing Station | Finance | Top of Page | What's New | My Stuff