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  • Mortgages & Finance

    Non standard construction - survey problem

    Hi ,

    I own a 3 bedroom flat that I bought from a distressed selling company, The deal had to be completed within 14 days, Home report value was 80k, I bought the house at 55k, And spent 5k modernize redecorating as that's all that was required to let it, It was let out the day it went on the rental market to a young family at 650PCM.

    It's now 2 years on and I decided to convert the flat to a BTL mortgage to fund another purchase I was in the process of doing, I contacted my mortgage broker who put it through with Bank of Scotland and all went throgh, They instructed a survey on the property which I was present at, And the surveyor seemed ok, I explained what I had done to the property and what I was doing, The weather was freezing (-7) and the snow was fairly bad that the surveyor had to ask me what material the roof was made of.

    I found out a week later by post that the mortgage has been declined due to non standard construction of the building,  Even though I know personally the same lender has 2 other properties in the same building.

    One of my friends is a surveyor for a large well know surveyors and he had a look at the property and said the construction is foam slag but still fine for lending panels.

    Has anyone been in a situation like this before that can advise me how to proceed ? My broker has asked the lender to appeal the decision but that was nearly a month ago and doesn't seem to be getting anywhere.

    The original home report when I bought the flat does not mention anything in regards to the construction being non standard.

    Thanks.

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    Just so I understand something ... do you currently have residential finance on the property or was it a cash purchase?

    I would not waste your time chasing BoS to appeal the decsion.  Firstly, it is virtually impossible to challenge a lender when they decline, and secondly, they may have declined because they already lend on two other flats in the building, and may feel over-exposed there.

    ​Now that you know the construction of the property, your mortgage broker can fit you to a lender with an appetite for this kind of property.  I am sure there will be one.

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    It was a cash purchase at the time when I bought it.

    My broker seems to think chasing the appeal is the way to go, But I actually read on here some time ago by yourself I'm sure that changing a lenders decision is nearly impossible.

    The whole situation is quite disappointing.

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    We have a flat roof property we have tried many times to mortgage and have always been turned down.

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    This isn't a flat roof property and all other 5 houses in the block are owned outright.

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    Even though I know personally the same lender has 2 other properties in the same building.

    This isn't a flat roof property and all other 5 houses in the block are owned outright.

    Those 2 statements contradict each other....




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    Sorry I should have been clearer.

    There is no council owned property's in the block of flats, The roof is not flat, And I know 2 of the other flats have been mortgaged via the same broker using Hallifax/Bank of Scotland.

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    Lenders will limit how many properties they will mortgage in any one block of flats and also in any one postcode.

    This sounds to me like they didn't want any further exposure in that block of flats.  That why I think a different lender is the best way forwards.

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    You can certainly appeal but you need a good reason to be successful. I suspect the above contributors are right - lender over-exposure. You need to challenge them on that to be sure but I suspect that will be the answer.

    Ensure that you get a copy of the valuation report and then ask your broker to source someone who can lend on the basis of the contents of this report.

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022


    I would suggest as other contributors to this topic, you need to find a new lender. You can keep the appeal going in place and see it through, but have a plan B. You can apply to the new lender whilst the appeal is going through.

    It would be worth speaking with other owners in the block to see who their mortgages are with - generally a great place to start (as long as the lender is not over exposed)

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    Jenny Reeves

    Property Tribes Financial services

    You can contact me via Direct Message, or 07581 794922 or call the team on 01206 654444 for personalised quote and advice


    Thank you for the replies, I will speak to my broker and If he cant progress it forward I will look at changing brokers.

    Thanks.

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