Un-Mortgageable Property - any ideas?

Dijor

Hi. Only just read your article so apologise if the information is not now needed. Firstly, what classification or grade mundic is it? This is vitally important as if its Class A, you can get a mortgage no problem, if its A/B, most lenders will lend on it, if it's Class C, it is, as you say, unmortgageable. On an A/B classification, you can have further tests undertaken on the blockwork which will determine any degradation. This of course has to be paid for and I think it's in the region of £350, the same as a standard mundic survey. I work for a surveyor who has a real "thing" about why lenders will not lend on mundic property when the majority of them are perfectly sound for many years, if kept in good order. Out of interest, where abouts is the property? As you say, mundic property is quite sought after by cash purchasers simply for the plot alone, if its in a good area with sea views. This can often produce a higher selling price than if the property were okay as it would not be so easy to get planning permission to demolish a perfectly sound building.

Anyway, hope the above is useful. If you require any further info, i'm happy to help.

MortgageMamma

I'vre just found out that cheltenham and gloucester will lend on mundic constructed properties. I've been told by a branch manager that they do not increase rates for it either but im not convinced! I am currently placing a deal with them now on this basis, will update when it completes and let you know how it went.

TAKEAWAY_2

If all of the above fails, why not knock it down and build a new house it's alot cheaper than you think, there are loads of mortgages available that are designed for this purpose and release funds in stages as each part of the build completes.

Like you says it's on a good plot, so you may even create some real equity on the way!

Think out side of the box!!

Bit of a rash idea, but personal loans to the tune of 70k...DON'T BOTHER!

Dijor

Hi MortgageMamma,

Could you let me know which Branch of C&G you are placing the mortgage with?

I'm very keen myself to contact them to see what they say and it will be fantastic news for a huge amount of people here in Cornwall if they will lend on them. Perhaps you could post a reply asap?

Thanks.

MortgageMamma

I spoke to a branch in worcester. but on my sourcing system (I'm a broker) it says they will accept mundic construction. get in touch with them and see what they say. Ive submitted my case, its at underwriting and its not been immediately declined so things are looking good.