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  • Buy-to-Let

    Wimpey no fines - risks & finances?

    Good morning,

    Have you ever bought or considered buying a house of construction 'wimpey no fines'? I've read that it's the best of non-standard constructions but what are the risks associated with buying such house? Would it be worth to take a construction survey before purchase?

    Have you taken a loan for such property? Which lenders have you used? Would be great to hear your comments.

    Have a good weekSmile

    Joanna

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    The risk is the longevity of the property. Mortgage lenders as you know do mortgages typically at 25-year terms.
    So they want to be sure that a property will have longevity.

    This is why many mortgage lenders shy away from Wimpey No Fines. Others Set Maximum LTV's, some await valuer comments, others with guarantees, others with structural reports,  and some only two-story Wimpey No Fines.

    So you will have a problem getting a mortgage, though there are choices.
    That also means when it comes to selling, anyone buying the property from you will have issues getting a mortgage.
    This limits the market available to you which (with supply and demand) can mean low offers for the property.

    If you do proceed to make sure its a good deal. The team at Bespoke Finance will be happy to help on 08009202001 or email hello@bespokefinance.info if you require a Wimpey No Fines Mortgage.

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    _________________________________________________________________________


    My posts are not financial advice but often me rambling - passing time on a coffee break.
    Our team at Bespoke Finance offers Limited Company Buy-to-Let and Cheap Life Insurance.

    _________________________________________________________________________


    Hi Adam,

    Thank you for comments. 

    You mentioned longevity, so do you mean that such properties generally lasts shorter than standard brick houses? 

    Do I assume well that there are lenders which will lend on 75% LTV but it might be more difficult to get higher LTV? Are there lenders which would lend on short term let (Airbnb style)?

    What could be the best course of action to buy it? I'm thinking of placing an offer with condition that I'll purchase only if structural survey will give positive outcome... How much can be the cost of such survey and where to find proper specialist to carry it out?

    Joanna


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    I live in Cornwall and have bought Mundic block built houses. Lenders don’t like them, but they can be bought for far less than an equivalent standard construction house, and the tenants don’t care what the construction is, as long as it’s warm and dry.

    It means low or no leverage but the return on equity is good. I expect the same thing applies to Wimpey no fines, Cornish units Woolaways etc

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    Hi Joanna,

    I bought a Wimpey 'no fines' ex-council flat, constructed 1989, in Nottingham, 4 years ago.

    I got 80% LTV with The Mortgage Works at that time.

    Polly


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    Hi joanna

    fwiw we have five Wimpey no-fines in Leeds and have them all mortgaged through TMW or BMS with 70-75% ltv

    The rest of our houses are all Parkinson parkwall construction and again these two providers and Skipton BS are happy to lend, on all of course with reducing ltv's as the prudential regulation authority regulations dictate

    peter



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    Hi guys,

    Thanks for all answers.

    Peter, was it Buy to Let that you mortgaged with TMW and BMS? You mentioned Skipton, do they offer also loans for such BTL?

    Would appreciate your comment.

    Joanna


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    Hi Joanna

    yes, they're all btl mortgages.  The Skipton mortgage was taken out before portfolio landlord status was established but looking at their website doesn't exclude future possibilities.  Both BMS and TMW accept portfolio landlords with full asset and liabilities disclosed.

    Having more than four properties and being catagorised as a portfolio landlord makes the lenders we use more cautious but not impossible to deal with.  Mortgage works will still lend 75% on a purchase but only if the average of all our properties is below 65%.

    It seems the high street banks are keener to lend to a casual landlord as a one to four property proposition than an experienced one with a dozen or so properties, we were midway through remortgaging to HSBC on one property when portfolio rules and guidance arrived two years ago and had a devil of a job getting them to honour the original mortgage offer... they did but on renewal rates were uncompetitive and we're currently shifting this back to BMS. 

    Wishing you all the best in your endeavours

    Peter




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    Hi Peter,

    Thanks for your comprehensive answer. Since you have five 'wimpey no fines', can you please advise what should rise my allertness when I am viewing the property? Have you had building surveys done before the purchase? Is it advisable to do it? ''Longevity" is what was mentioned in this thread few times, does it mean that such building will 'grow old' faster than standard construction? Is there a need for any specific treatment?

    I would appreciate your comments Smile

    Joanna

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    Hi Joanna

    In east Leeds in the 1960's the council authorised many different non standard build types across the areas of Gipton, Seacroft, Whinmoor and Swarcliffe.  The failed build types have since been knocked down and there's massive building programs going on where they were.  This leaves the build types that are okay including the two types we own, Wimpey no fines and Parkinson parkwall.

    Some of these will never be loved by certain lenders as they're not "traditional".

    The Wimpey no fines need no certification, they have no cavity to insulate and on a couple of ours the previous owners had taken advantage of government funding available at the time to enable exterior insulation to be added.  This reduces heat loss and transforms the look of the property.  All ours have older double glazing long before trickle vents aided airflow and the biggest frustration, as with all our properties, is tenants drying clothes in their homes without proper ventilation such as opening windows or using dryers correctly, resulting in excessive condensation turning to mold on the coldest wall.

    trust this helps,

    Peter

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    Hi Joanna,

    One of ours is Wimpy No Fines and the pool of lenders was reduced, but got through no problem with BMS at a decent rate and LTV we wanted (75% at the time)...we added external wall insulation to the property with 10-year guarantee, which may have helped and ought to have a positive effect on the longevity of the property, while also improving its look and improving its thermal performance.

    Best,

    Guy

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    Guy Brown
    Blue Infinity Property Group
    M 07791-661491 | T 0118 3360366 | E guy@blueinfinityproperty.com<script data-cfhash='f9e31' type="text/javascript">/* http://www.blueinfinityproperty.com

    * New build residential developments and flat conversions in the Home Counties
    * High end HMOs in Reading and Bracknell