Mortgage valuation question?

[Jammez]

Hi Folks

Any mortgage experts out there?

Just in the process of buying a new house. Our loan to purchase price is 45% due to us having a hefty deposit from the sale of our current house.

Nationwide who our current mortgage is with and who had approved our new mortgage have come back today saying they may not be able to lend us the money as due to valuing the property below what we've offered. We're paying less than the original home report value but they are saying due to the renovation work required on the property they may not be able to give us the mortgage? Surely a home report value reflects this?

They've come to this conclusion without even viewing the property themselves! They've only gone on the home report info which they've had right since the start of this process & right through the agreement in principle & the formal acceptance. They are sending someone out on Thursday to survey the property (which they decided not to do 2 weeks ago as they'd already decided from the home report it was too risky but failed to get in touch with us till today) so we'll no more after that.

I get this would be a problem if you were mortgaging right to the limit and a house valuation was lower but we have over £200k of equity going into the purchase and there's no way the house is going to be devalued by anything like that.

Why would they be doing this? We're also long term Nationwide customers for 30+ years with mortgages, credit cards, loan history with them + a perfect credit rating and well within the affordability for the mortgage.

To say we're pissed off when we should be finalising in 9 days in an understatement!

Any thoughts or advice?

Cheers

James

[Jammez]

Thanks Hyena

The house is moveinable (made up word!) if you had low standards! All the main stuff is sound, roof & walls are all solid, electrics, heating & plumbing are all serviceable but the house hasn't been lived in for about 3/4 years so it's in a state.

There's an old coach house & loads of steading buildings and these are in various states. I get the impression they've focused on the information in the home report that relates to the outbuildings rather than the main house. What's frustrating is they seem to have come to this conclusion without actually visiting the property!

We'll see if anything changes on Thursday when they send the surveyor out. I'm assuming if they due decline there must be companies that specialise in supporting people who buy houses to renovate or self builds

Cheers

James

[Jammez]

As predicted they came back on Monday saying it doesn't fit their risk profile. I understand the concept but what's most annoying is they've left it to the very last minute to tell us this!

They had the home report, which is a pretty honest description of the place right from the get go 2 months ago and they leave it till 5 days before we close to tell us!

Off to see a broker this afternoon, only looking for £160k on a property that was originally valued at £380k & we're purchasing at £350k so fingers crossed he can sort something for us.

[Jammez]

55palfers said:

Tossers!

How much do you reckon the land alone is worth?

Difficult to say but not a huge amount. Its a rural property so if there were no buildings on it you'd only be looking at around £30k for the land circa 4.5 acres. (there's an adjoining piece of agricultural land which we're not buying that's up for £35k so that's where my estimate comes from)

The farmhouse on it's own in renovated condition would be worth what we're paying for the farmhouse house, coach house, steadings & 4.5 acres.

The opportunities for the steadings & coach house are huge. It has lapsed outline planning to convert into 5 properties, with one of those being a 5 bedroom house.

Long term we will probably look to convert some of the steadings into 3 holiday lets with the rest being garages & workshops for toys!