Advice Needed - Survey says house is Unmortgageable

silvercar

If you are desparate for this house (and now that the price has dropped 15k I guess it seems even more attractive), one solution may be to take the mortgage with full retention (ie they don't give you any money until the kitchen is sorted) and get a bridging loan to fund the purchase and the kitchen. Then you pay off the bridging loan when you drawdown the mortgage. An expensive solution, but a possibility.

weenster

The mortgage valuation report on the house I am buying has just come through. It says:

There is a single story, timber framed, flat roofed kitchen extension to the rear. The flat roof comprises approximately 30% of the total roof area. It seems unlikely that the kitchen extension will comply with modern building regulations and thus the property is considered unsuitable for mortgage.

We still really want to buy this place but are at a loss to understand exactly why it is being refused. I have spoken to the mortgage lender, the estate agent and my solicitor. No help from any of them. They all say, why don't you try another lender?

Has anyone any ideas which might stop me going slowly mad?

Thank you so much.

tek-monkey

Funnily enough I also have a problem with a kitchen extension, only mine is that the drains run under it. Also unmortgageable til fully checked over, bah!

Hailstorm

weenster wrote: »

The mortgage valuation report on the house I am buying has just come through. It says:

There is a single story, timber framed, flat roofed kitchen extension to the rear. The flat roof comprises approximately 30% of the total roof area. It seems unlikely that the kitchen extension will comply with modern building regulations and thus the property is considered unsuitable for mortgage.

We still really want to buy this place but are at a loss to understand exactly why it is being refused. I have spoken to the mortgage lender, the estate agent and my solicitor. No help from any of them. They all say, why don't you try another lender?

Has anyone any ideas which might stop me going slowly mad?

Thank you so much.

Have you asked your lender if they would consider a second opinion if a second survey is commissioned? Obviously you would have to pay for any additional surveys. Other then that I think trying another lender would be your only option.

Another factor to consider if you have difficulty getting a mortgage for a property is that your potential buyers might also have problems when you come to sell.

weenster

Thank you for your replies, Tek-Monkey and Hailstorm. Much appreciated. I have gone back to my lender and asked for a second opinion. They have said they will take another look at the report and give me some more information as to why it was refused. Hopefully, this will enable me to make a decision about whether to pursue the purchase or pull out. So jaded already by this house move! Good luck to everyone else though and hope you are successful with your house purchases.

amcluesent

Sounds like a classic scam to me! Bob the Builder no doubt slips the surveyer 10% for his 'help' in condemning the buildings. Just like garages fail your MOT and then offer a 'bargain' to repair. FACT - "professionals" are always looking for ways to fleece the punters.

What a nonsense that a building doesn't meet 'code'. Of course they don't as the "professionals" are always dreaming up more and more absurd rules for yer 'elf'n'safety. Round my way, houses are developing ludicrous 2m pipes sticking out from the ridge tiles as boiler flue rules have changed again.

All my DIY is done in a time-warp when it's always 2004!

pingu2209

petermatheson1 wrote: »

My problem is that I'm questioning the accuracy of the survey.

The current owners bought 5 years ago with the exact same Kitchen, and it wasn't raised as an issue on their survey.

I don't want to look into rebuilding the entire kitchen if it doesn't need it... Can I get a second opinion?

Clearly you really like the house but see this as a plus as you may be able to knock off quite a few thousand if you negotiate harder. Remember not to tell the Estate Agent much as he is working for the seller, not you! Then try a different surveyor once you knock of a few thousand. Use this information to your gain.

bubblybee

I can't really give a complete answer but two thoughts - don't rely on what a builder tells you, a surveyor chartered by RICS will be professionally trained and covered by insurance. Get another surveyor in to assess.

Secondly, can you arrange something through your solicitor in terms of getting money from the existing owners? When I've been looking at putting a deposit together one suggestion was that the owners pay into an account which the solicitors arrange specifically for that purpose. I don't know the ins and outs but something along these lines might work.

I agree with lots of the other posts here which say that the Estate Agents are only looking to sell the property. They want to meet sales targets and don't really care about the purchaser. The EA is employed by the seller.

While it can be disappointing, my impressions of house buying are that you can't trust anyone - not the seller and not the EA. Go on gut instinct and if there is an inkling of concern about kitchen don't pursue it. You'll only regret it later.

weenster

Thanks for all your replies and advice so far. No reply from lender yet with more information as to why extactly they won't mortgage the property.

However, I have had a phone call from the Vendor's estate agent telling me that the kitchen extension was built in 1975, 25 years before the Vendor bought the property. Also that when the Vendor purchased it she was told by her solicitor that it was irrelevant whether or not it had Planning Permission or Building Regs because it had been built so long ago. Does anyone know if this is right?

I am starting to feel a bit fed up with all the Estate Agent/Solicitor malarkey. I know I won't get any help from the Vendor's Estate Agent but you would think my Solicitor would be able to do something constructive. When I told them about the situation all they said was "Oh dear, that's awful, what are you going to do?"

Anyway, hopefully the Building Society will get back to me tomorrow.

Thanks again everyone, it's so useful to hear your views when I understand so little about this subject myself.

bubblybee

It all sounds a bit like a nightmare for you.

I can't help with the building regs but planning I may shed a little light. At the most basic level, as the extension was built over 25 years ago providing noone has taken enforcement action within the first four years after it was built and that it is still not ongoing (unlikely), it should be ok from that respect in planning terms. There might be some other restrictions however in the deeds of the property which means that planning permission should have been sought or extensions are never allowed - but that isn't necessarily planning related and I don't know how that fits in with the 4 year rule.

Now gets to the confusing bit, some extensions need permission and some don't. It might well have been that the extension never even needed permission in the first place due to its size, the type of house, etc. However, to protect yourself, I would ask to see a Lawful Development Certificate for the extension. The vendor can apply for it retrospectively but it does take about 4 weeks to work through the planning system and of course time and money to prepare the application not to mention the delay and frustration as a buyer. It is much more straight forward than a full application though. An LDC is not vital but it does put your mind at rest - although 25 years is a long time.

Good luck tomorrow.