Mortgage Survey. Help needed!!

julielouise_3

Hi.
I recently found a great little flat with the asking price being 215k I put in an offer for 182k and it was accepted, Royal Bank of Scotland seemed happy with me and my 25% deposit. The flat is above a clothes shop and they were fine with that.
The survey was carried out and they have said it isn't suitable security for a mortgage.
Trying to get to speak to someone is like getting blood out of a stone.
I paid £300 for this, can I dispute the survey, is there any possibility I can get them to change their minds? Or once they've made their decision is it set in stone? The flat has a back entrance via a metal staircase, the estate agent told me the surveyor was huffing and puffing about this entrance.
If anyone could give me a bit of advice on how best to deal with this I would be very grateful.
Many thanks.

anniecave

have you actually seen the survey results? what exactly does it say?

Is it bank of scotland saying they can't offer you the mortgage based on the survey? What are they saying exactly?

julielouise_3

Have been trying to get it faxed across, hoping i'll get it tomorrow. My broker told me that RBS wont lend on it as it is not suitable security for a mortgage. Wasn't sure if this was jargon for it isn't worth 182k. I'm gonna post exactly what it says when they finally decide to send it to me, the survey was done 2 weeks ago.
Thanks.

anniecave

Sounds like there is something in the survey that means that RBS wont touch it. I know flats in general can be difficult to get mortgages for as it's part of a building with another property.
Your mortgage broker may be able to advise you if there are any other lenders that may lend to you?

Cazza

The phrase not suitable security does mean they won't lend on it. You can try to argue it, but it's a very slim chance you will win. Basically, the surveyor has gone round and decided that the property isn't good enough for a mortgage with RBS, so you're arguing with someone's opinion. Whether he thinks it's worth £182k or not is beside the point, as he's just saying he doesn't think RBS should lend on it full stop.

Usually, if a lender refuses to lend on a property, it's due to resaleability issues (unless it's structural). The thing they are worried about is how easily they will sell your flat, if they have to repossess it. In the current climate, with properties taking a long time to sell anyway, flats which are above commercial property (of any type), and with the entrance as you descirbed, might be viewed by some people as less desirable than other properties, and that is what your surveyor has told RBS.

Geenie

I wouldn't pay £182,000 for a property above another property which could have liability problems.

The shop will be empty at various times, and therefore whatever happens down there could impact on the flat above, for better or worse.

It seems a lot of money for a flat above a shop! I would imagine your lender has realised this after inspecting and is more accurate then the EA trying to sell.

Keep a cool head OP, and don't get caught up in doing something you may regret further down the road. Good luck.

barrymoney

I tried to buy a flat above a shop a few years back and had the same thing, the lenders wouldn't touch it, had to pull out.
For what its worth , the shop was a restaurant.. (obvious fire risk, amongst other things!). Your clothes shop might change to something else.

In retrospect I'm very glad I didn't buy it, must be impossible to sell now. But I was also a tad annoyed the broker didn't guess this problem before I paid for the survey. IIRC they valued it at the price I offered (but that was 05).

julielouise_3

Thanks for your replies, but it was made clear to RBS it was above a shop.
The reason for the price is that it's very near to central London, just on the outskirts of Camden Town.
This is actually the second mortgage I applied for on this property, the first one was with The Halifax, they did the survey it came back ok and then 2 weeks later they decided not to give me the mortgage. So that's 2 lots of survey costs i've paid out for.
Both mortgage lenders have made me wait so long for replies and everyone involved just keeps telling me that's the climate, this has all taken 3 months so far.
Even if this is the surveyors opinion, is there anything I can do to change his opinion?
Offer a lower asking price?
Thanks.

poppysarah

Save up and buy it with your own cash.

You need to look at why it's a bad risk for them.

Debt_Free_Chick

Many lenders simply won't offer a mortgage on a flat above a shop. You need a mortgage broker to find those that do.

julielouise_3

I would love to buy it with cash, but not sure if the vendor would want to wait 20 years for me to do so.
This mortgage was through a broker and the mortgage apllied for was one that is supposed to lend on flats above shops.
Would I be able to speak to the surveyor in person? I spent £300 surely i'm entitled to ask a few questions and get answers as to what to do next. Rather than a couple of lines of surveyor speak jargon on a bit of paper.