Mortgage expert / valuation advice urgently needed
Discussion
Hi guys
Apologies if this is in the wrong section but it is a strange one....
In May 2015 I purchased a one bed flat in Surbiton, Surrey for 201k (75% mortgaged).
The property would have been one large victorian house years ago but circa 1984 it was converted into a 2 bed flat upstairs and a physio clinic at the front and a one bed flat at the rear (my flat) on the ground floor.
I purchased it knowing that I would need to spend circa 20k on it as it needed everything; gas installation, kitchen, decoration.... the lot.
After living there for 6 months I decided to sell and after being on the market for only 3 days I accepted an offer of 261k.
It has all taken an age to go through as there have been delays with the property that I inted to now purchase.
My buyers went through their broker and on the 9/2/2016 a valuation survey was carried out. A few days later I spoke with my buyer (they are now friends) and was informed that they mortgage had been rejected.
I saw the report and it stated, amongst other things: some works of repair and maintenance are required and that it is a poor quality conversion.
I was alarmed/annoyed/frustrated at this as I know the property is in A1 condition and is an excellent quality conversion.
I suggested to my buyers that they should try for another mortgage but this time use the same lender as I am with (a major high street lender).
This they did and last week another valuation surveyor attended my property. He was from the same company that had been out a few weeks prior.
This morning I get a call from my buyer stating that again their application has been rejected and on the report it states 'the property is not suitable for mortgage purposes....' !!!
I immediately called the surveying company but they would not discuss the matter with me and asked me to e-mail them which I have now done.
I called my lender and explained the situation and how they are currently lending on a property which they are now saying that based on a current report they will not lend on...
They suggested that I get my buyer to call them and appeal the decsion and there is a possibility that one of their own surveyoys could do a site visit.
As it stands:
- I will probably loose my purchase property
- My buyers pull out
- I am in a property that could be 'un-mortgageable'.... (even though there is a mortage on it....)
- Say i simply put it back on the market (it would go on for about 300k as the market is booming in the area). Whats to say I wont have the same problems with buyers in the next few months putting me back at sqaure one.
- Surely my lender has a duty of care here; they have lent me money to purchase a property that as it stands I can not currently sell!!?
I am stuck between a rock and a hard place
I am waiting to hear back from my buyers as I hope they get some joy and get another valuation done by the lender.
Apologies for the long post but any advice is massively appreciated :0
Apologies if this is in the wrong section but it is a strange one....
In May 2015 I purchased a one bed flat in Surbiton, Surrey for 201k (75% mortgaged).
The property would have been one large victorian house years ago but circa 1984 it was converted into a 2 bed flat upstairs and a physio clinic at the front and a one bed flat at the rear (my flat) on the ground floor.
I purchased it knowing that I would need to spend circa 20k on it as it needed everything; gas installation, kitchen, decoration.... the lot.
After living there for 6 months I decided to sell and after being on the market for only 3 days I accepted an offer of 261k.
It has all taken an age to go through as there have been delays with the property that I inted to now purchase.
My buyers went through their broker and on the 9/2/2016 a valuation survey was carried out. A few days later I spoke with my buyer (they are now friends) and was informed that they mortgage had been rejected.
I saw the report and it stated, amongst other things: some works of repair and maintenance are required and that it is a poor quality conversion.
I was alarmed/annoyed/frustrated at this as I know the property is in A1 condition and is an excellent quality conversion.
I suggested to my buyers that they should try for another mortgage but this time use the same lender as I am with (a major high street lender).
This they did and last week another valuation surveyor attended my property. He was from the same company that had been out a few weeks prior.
This morning I get a call from my buyer stating that again their application has been rejected and on the report it states 'the property is not suitable for mortgage purposes....' !!!
I immediately called the surveying company but they would not discuss the matter with me and asked me to e-mail them which I have now done.
I called my lender and explained the situation and how they are currently lending on a property which they are now saying that based on a current report they will not lend on...
They suggested that I get my buyer to call them and appeal the decsion and there is a possibility that one of their own surveyoys could do a site visit.
As it stands:
- I will probably loose my purchase property
- My buyers pull out
- I am in a property that could be 'un-mortgageable'.... (even though there is a mortage on it....)
- Say i simply put it back on the market (it would go on for about 300k as the market is booming in the area). Whats to say I wont have the same problems with buyers in the next few months putting me back at sqaure one.
- Surely my lender has a duty of care here; they have lent me money to purchase a property that as it stands I can not currently sell!!?
I am stuck between a rock and a hard place
I am waiting to hear back from my buyers as I hope they get some joy and get another valuation done by the lender.
Apologies for the long post but any advice is massively appreciated :0
I'm no expert!!!!!
Mortgage lenders don't seem to like mixed residential and commercial property in 1 building as its harder to sell if they have to repossess. Rules seem to be getting tougher.
Is the title split between the commercial element and the residential element correctly?
I'd probably spend a few hundred quid and get your own RISC survey done, say its for mortgage purposes.
You MUST be present when your survey gets done as this is your opportunity to ask questions. Can you get a copy of the report to show to your valuer? Bear in mind they may know each other so don't be too arsey :-)
If your unlucky and end up with the same chap point out YOUR paying for his time, and ask what can be done to rectifly the situation. If nothing can be done throw it into auction and hopefully someone else will buy your problem
Some people were bullied at school and love being able to stop other people getting on (my opinion ofcource)
Good luck
One thing I don't understand is how you got a mortgage on it in the first place if it had no kitchen?
Mortgage lenders don't seem to like mixed residential and commercial property in 1 building as its harder to sell if they have to repossess. Rules seem to be getting tougher.
Is the title split between the commercial element and the residential element correctly?
I'd probably spend a few hundred quid and get your own RISC survey done, say its for mortgage purposes.
You MUST be present when your survey gets done as this is your opportunity to ask questions. Can you get a copy of the report to show to your valuer? Bear in mind they may know each other so don't be too arsey :-)
If your unlucky and end up with the same chap point out YOUR paying for his time, and ask what can be done to rectifly the situation. If nothing can be done throw it into auction and hopefully someone else will buy your problem
Some people were bullied at school and love being able to stop other people getting on (my opinion ofcource)
Good luck
One thing I don't understand is how you got a mortgage on it in the first place if it had no kitchen?
Edited by 528Sport on Tuesday 1st March 17:16
Edited by 528Sport on Tuesday 1st March 17:19
528Sport said:
I'm no expert!!!!!
Mortgage lenders don't seem to like mixed residential and commercial property in 1 building as its harder to sell if they have to repossess. Rules seem to be getting tougher.
Is the title split between the commercial element and the residential element correctly?
I'd probably spend a few hundred quid and get your own RISC survey done, say its for mortgage purposes.
You MUST be present when your survey gets done as this is your opportunity to ask questions. Can you get a copy of the report to show to your valuer? Bear in mind they may know each other so don't be too arsey :-)
If your unlucky and end up with the same chap point out YOUR paying for his time.
Some people were bullied at school and love being able to stop other people getting on (my opinion ofcource)
Good luck
One thing I don't understand is how you got a mortgage on it in the first place if it had no kitchen?
HiMortgage lenders don't seem to like mixed residential and commercial property in 1 building as its harder to sell if they have to repossess. Rules seem to be getting tougher.
Is the title split between the commercial element and the residential element correctly?
I'd probably spend a few hundred quid and get your own RISC survey done, say its for mortgage purposes.
You MUST be present when your survey gets done as this is your opportunity to ask questions. Can you get a copy of the report to show to your valuer? Bear in mind they may know each other so don't be too arsey :-)
If your unlucky and end up with the same chap point out YOUR paying for his time.
Some people were bullied at school and love being able to stop other people getting on (my opinion ofcource)
Good luck
One thing I don't understand is how you got a mortgage on it in the first place if it had no kitchen?
Edited by 528Sport on Tuesday 1st March 17:16
Thanks for the post.
There was a kitchen fitted when I purchased; it has been replaced.
The title has been split between the 2 flats and the clinic. Its a beautiful conversion.
I have just spoken with my lender in depth and have made little progress.
They are saying the onus is on my buyers to appeal the decision.
When I pointed out that they lent on the flat last May and will not lend now they are trying to make out that it is something I have done that is making it un-mortgageable now!!
What is the point in me re-marketing the flat now with the chance that I could be in the same position in 3 months time!
I have asked my buyers to speak with the lender to find out exactly what was said in the survey as to why they deem it un-mortgageable.
I have in front of me the valuation report that was done in March 2015. It was completed by a MRICS registered valuer. I am more than happy to call them and ask them to carry out another valuation but do not see the point as any lender will go through the valuer of their choice?
Cheers
Sorry to hear of the trouble you are having, the last thing you need after securing a sale is a load of trouble.
The property we purchased last year is timber framed. I thought originally you could not even get a mortgage for it, but if its old enough, then its ok. As it turned out, parts of the house were 300 years old, so we had no problem getting a mortgage. Anyway, thats beside my point.
Because it was timber framed, I was personally concerned and we paid a local surveyor to do our own survey, which was a lot more detailed than the one the mortgage company did. There were a few options and I paid for the best one and was pleased to get a very detailed report that they sat down and went through with my wife and me.
I would suggest speaking to a surveyor and getting your own detailed report, it might even be of use to your buyers mortgage lender.
The property we purchased last year is timber framed. I thought originally you could not even get a mortgage for it, but if its old enough, then its ok. As it turned out, parts of the house were 300 years old, so we had no problem getting a mortgage. Anyway, thats beside my point.
Because it was timber framed, I was personally concerned and we paid a local surveyor to do our own survey, which was a lot more detailed than the one the mortgage company did. There were a few options and I paid for the best one and was pleased to get a very detailed report that they sat down and went through with my wife and me.
I would suggest speaking to a surveyor and getting your own detailed report, it might even be of use to your buyers mortgage lender.
Hi
I have asked my buyers to contact both the lender and the survey company in the morning to find out why it has been deemed un-mortgageable.
I have seen the report that was done a couple of weeks ago and it stated 'poor quality conversion' which makes no sense.
I could call an independent company as has been suggested but all this would really do is give me some idea as to why the banks will not lend.
I feel that the lender themselves needs to view the property to satisfy their requirements but can not see this happening.
I could quite literally be sat in a property that is currently mortgaged but is now deemed un-mortgageable!
Is there an ombudsman or body who would look into this?
Cheers
I have asked my buyers to contact both the lender and the survey company in the morning to find out why it has been deemed un-mortgageable.
I have seen the report that was done a couple of weeks ago and it stated 'poor quality conversion' which makes no sense.
I could call an independent company as has been suggested but all this would really do is give me some idea as to why the banks will not lend.
I feel that the lender themselves needs to view the property to satisfy their requirements but can not see this happening.
I could quite literally be sat in a property that is currently mortgaged but is now deemed un-mortgageable!
Is there an ombudsman or body who would look into this?
Cheers
It sounds like a strange situation.
Do you know what kind of survey the lender is having done? Is it a basic valuation or what?
There are 4types and only the most basic is a contract between the lender and the valuer. The other 3 are a contract between the buyer and the surveyour.
If you haven't already try to view both surveys. The lenders duty is to ensure that the property is adequate security for a loan.
Several factors will be considered like the buyers deposit...
Lending decisions are never cut and dry, the hight st ones mostly want to lend on easy cases.
So a decent broker should be able to find the right lender, for prospective purchasers.. From what you have said there should be no reason that someone can't get a mortgage on the flat.
Hope that helps.
Do you know what kind of survey the lender is having done? Is it a basic valuation or what?
There are 4types and only the most basic is a contract between the lender and the valuer. The other 3 are a contract between the buyer and the surveyour.
If you haven't already try to view both surveys. The lenders duty is to ensure that the property is adequate security for a loan.
Several factors will be considered like the buyers deposit...
Lending decisions are never cut and dry, the hight st ones mostly want to lend on easy cases.
So a decent broker should be able to find the right lender, for prospective purchasers.. From what you have said there should be no reason that someone can't get a mortgage on the flat.
Hope that helps.
I would be surprised if the property is unmortgageable. However firms criteria does change all the time and it is not unusual for them to not consider property today that they would have lent on a week ago.
You need to find what the criteria is - and why you now fall outside it. Lean on your EA - they should be helping with this.
Lenders often do not like flats over shops. This may or may not be the problem.
You are shooting blanks appealing stuff without knowing the reasons. Get your EA doing some legwork then go from there. You should then know whether it is something that you can appeal (i.e. opinion), or something which is just fact.
You need to find what the criteria is - and why you now fall outside it. Lean on your EA - they should be helping with this.
Lenders often do not like flats over shops. This may or may not be the problem.
You are shooting blanks appealing stuff without knowing the reasons. Get your EA doing some legwork then go from there. You should then know whether it is something that you can appeal (i.e. opinion), or something which is just fact.
Is the flat freehold or leasehold? Mainstream lenders don't like freehold flats, and they don't like residential/commercial mix, particularly if the use class is A1 because the type of shop can change which can significantly influence the value of the adjoining residential property.
Usually a physio clinic would be D1 though. It may be that the surveyor has not looked into the use class or has wrongly assumed it's A1 and hence not suitable for a mortgage. This is something worth looking into.
Have a look at https://www.skipton-intermediaries.co.uk/mortgages... to get an idea of a mainstream lender's criteria.
Usually a physio clinic would be D1 though. It may be that the surveyor has not looked into the use class or has wrongly assumed it's A1 and hence not suitable for a mortgage. This is something worth looking into.
Have a look at https://www.skipton-intermediaries.co.uk/mortgages... to get an idea of a mainstream lender's criteria.
surveyor said:
m.
You are shooting blanks appealing stuff without knowing the reasons.
Plus you haven't really got anything to appeal as someone else got turned down not you.You are shooting blanks appealing stuff without knowing the reasons.
Mortgages lenders change criteria all the time, and things are tighter than they used to.
The Property being above commercial premises will definitely be a negative - so I suppose it depends on how the surveyor saw it on the day.
desolate said:
Plus you haven't really got anything to appeal as someone else got turned down not you.
Mortgages lenders change criteria all the time, and things are tighter than they used to.
The Property being above commercial premises will definitely be a negative - so I suppose it depends on how the surveyor saw it on the day.
HiMortgages lenders change criteria all the time, and things are tighter than they used to.
The Property being above commercial premises will definitely be a negative - so I suppose it depends on how the surveyor saw it on the day.
Thanks for all the replies so far.
I am out tonight so can't reply till the morn.
The flat is behind a physio clinc and not above as per my original post.
It's a leasehold and has 99 years left to run.
Cheers
pkrplyr said:
It sounds like a strange situation.
Do you know what kind of survey the lender is having done? Is it a basic valuation or what?
There are 4types and only the most basic is a contract between the lender and the valuer. The other 3 are a contract between the buyer and the surveyour.
If you haven't already try to view both surveys. The lenders duty is to ensure that the property is adequate security for a loan.
Several factors will be considered like the buyers deposit...
Lending decisions are never cut and dry, the hight st ones mostly want to lend on easy cases.
So a decent broker should be able to find the right lender, for prospective purchasers.. From what you have said there should be no reason that someone can't get a mortgage on the flat.
Hope that helps.
Cheers Do you know what kind of survey the lender is having done? Is it a basic valuation or what?
There are 4types and only the most basic is a contract between the lender and the valuer. The other 3 are a contract between the buyer and the surveyour.
If you haven't already try to view both surveys. The lenders duty is to ensure that the property is adequate security for a loan.
Several factors will be considered like the buyers deposit...
Lending decisions are never cut and dry, the hight st ones mostly want to lend on easy cases.
So a decent broker should be able to find the right lender, for prospective purchasers.. From what you have said there should be no reason that someone can't get a mortgage on the flat.
Hope that helps.
It's a basic valuation
TROOPER88 said:
desolate said:
Plus you haven't really got anything to appeal as someone else got turned down not you.
Mortgages lenders change criteria all the time, and things are tighter than they used to.
The Property being above commercial premises will definitely be a negative - so I suppose it depends on how the surveyor saw it on the day.
HiMortgages lenders change criteria all the time, and things are tighter than they used to.
The Property being above commercial premises will definitely be a negative - so I suppose it depends on how the surveyor saw it on the day.
Thanks for all the replies so far.
I am out tonight so can't reply till the morn.
The flat is behind a physio clinc and not above as per my original post.
It's a leasehold and has 99 years left to run.
Cheers
I've had an issue in the past where a out of town valuer downvalued my house. Deal fell through, and then sold again at bigger money. Happy days. Same valuer instructed. aghhh. Spoke to them and they agreed that they would decline the instruction due to a conflict - which was pretty good of them really.
TROOPER88 said:
pkrplyr said:
It sounds like a strange situation.
Do you know what kind of survey the lender is having done? Is it a basic valuation or what?
There are 4types and only the most basic is a contract between the lender and the valuer. The other 3 are a contract between the buyer and the surveyour.
If you haven't already try to view both surveys. The lenders duty is to ensure that the property is adequate security for a loan.
Several factors will be considered like the buyers deposit...
Lending decisions are never cut and dry, the hight st ones mostly want to lend on easy cases.
So a decent broker should be able to find the right lender, for prospective purchasers.. From what you have said there should be no reason that someone can't get a mortgage on the flat.
Hope that helps.
Cheers Do you know what kind of survey the lender is having done? Is it a basic valuation or what?
There are 4types and only the most basic is a contract between the lender and the valuer. The other 3 are a contract between the buyer and the surveyour.
If you haven't already try to view both surveys. The lenders duty is to ensure that the property is adequate security for a loan.
Several factors will be considered like the buyers deposit...
Lending decisions are never cut and dry, the hight st ones mostly want to lend on easy cases.
So a decent broker should be able to find the right lender, for prospective purchasers.. From what you have said there should be no reason that someone can't get a mortgage on the flat.
Hope that helps.
It's a basic valuation
It just sound like the lender not wanting to lend on this occasion.
There will be plenty that will want to lend.
TROOPER88 said:
528Sport said:
I'm no expert!!!!!
Mortgage lenders don't seem to like mixed residential and commercial property in 1 building as its harder to sell if they have to repossess. Rules seem to be getting tougher.
Is the title split between the commercial element and the residential element correctly?
I'd probably spend a few hundred quid and get your own RISC survey done, say its for mortgage purposes.
You MUST be present when your survey gets done as this is your opportunity to ask questions. Can you get a copy of the report to show to your valuer? Bear in mind they may know each other so don't be too arsey :-)
If your unlucky and end up with the same chap point out YOUR paying for his time.
Some people were bullied at school and love being able to stop other people getting on (my opinion ofcource)
Good luck
One thing I don't understand is how you got a mortgage on it in the first place if it had no kitchen?
HiMortgage lenders don't seem to like mixed residential and commercial property in 1 building as its harder to sell if they have to repossess. Rules seem to be getting tougher.
Is the title split between the commercial element and the residential element correctly?
I'd probably spend a few hundred quid and get your own RISC survey done, say its for mortgage purposes.
You MUST be present when your survey gets done as this is your opportunity to ask questions. Can you get a copy of the report to show to your valuer? Bear in mind they may know each other so don't be too arsey :-)
If your unlucky and end up with the same chap point out YOUR paying for his time.
Some people were bullied at school and love being able to stop other people getting on (my opinion ofcource)
Good luck
One thing I don't understand is how you got a mortgage on it in the first place if it had no kitchen?
Edited by 528Sport on Tuesday 1st March 17:16
Thanks for the post.
There was a kitchen fitted when I purchased; it has been replaced.
The title has been split between the 2 flats and the clinic. Its a beautiful conversion.
I have just spoken with my lender in depth and have made little progress.
They are saying the onus is on my buyers to appeal the decision.
When I pointed out that they lent on the flat last May and will not lend now they are trying to make out that it is something I have done that is making it un-mortgageable now!!
What is the point in me re-marketing the flat now with the chance that I could be in the same position in 3 months time!
I have asked my buyers to speak with the lender to find out exactly what was said in the survey as to why they deem it un-mortgageable.
Cheers
You mentioned the lease and its a 99 year one. Ive heard some lenders need to know that when a mortgage runs out there is at least 70+ years left on the lease so it can be sold on. Yours will have 70 years but it'll be tight. Could the lease be extended to 125 years?
As for marketing it, auction it. Set a sensible reserve and guide price.
People at auction are usually cash/bridge loan buyers. Dont forget if it gets bid upon and sold to a mortgage buyer and their mortgage falls thru you get a nice little non refundable deposit to play with :-)
Good luck
Edited by 528Sport on Wednesday 2nd March 09:37
Hi
My buyer has been in touch. He tried calling the surveyors directly but they would not give him any information.
He then spoke with the lender and they said:
Property not considered to be readily saleable. Does not comply with banks lending policy. They also mentioned the commercial shop.
Strange as it did in May last year!
I am really unsure where to go.
- My buyers are going to pull out
- I loose my purchase
- I could put it back up for sale with a new agent and start afresh hoping that it is surveyed in a different light next time / by a different surveyor....
- I will e-mail my solicitor to keep in the loop. They have put a fair amount of work into this as it has been a sale and a purchase and neither have been straightforward.
- I am not sure it is worth me getting my own survey done as the above is not something I can change. I agree that had it been an internal issue I could address then this would make sense.
Cheers
My buyer has been in touch. He tried calling the surveyors directly but they would not give him any information.
He then spoke with the lender and they said:
Property not considered to be readily saleable. Does not comply with banks lending policy. They also mentioned the commercial shop.
Strange as it did in May last year!
I am really unsure where to go.
- My buyers are going to pull out
- I loose my purchase
- I could put it back up for sale with a new agent and start afresh hoping that it is surveyed in a different light next time / by a different surveyor....
- I will e-mail my solicitor to keep in the loop. They have put a fair amount of work into this as it has been a sale and a purchase and neither have been straightforward.
- I am not sure it is worth me getting my own survey done as the above is not something I can change. I agree that had it been an internal issue I could address then this would make sense.
Cheers
Whilst I can see the commercial premises and 99 yr lease being negative factors, I would take everything said by the potential purchaser and their lender/adivser with a pinch of salt as they don't owe you anything at all.
It may well be that the purchaser has had the knockback, or changed their mind, and they are trying to save face with some excuses.
On the other hand, mortgage lending is getting tighter, so it is possible that your lenders rules changed and you are not now acceptable to them.
It could be as simple as their computer says they need a 100 yr lease and you now have 99 years.
It may well be that the purchaser has had the knockback, or changed their mind, and they are trying to save face with some excuses.
On the other hand, mortgage lending is getting tighter, so it is possible that your lenders rules changed and you are not now acceptable to them.
It could be as simple as their computer says they need a 100 yr lease and you now have 99 years.
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