Flat with Open Communal Access - mortgage woes

fakiee

Would just like to get an opinion on this. Out of all of the mortgage providers we have found only 3 will mortgage a flat with "Open communal Access" (doors are along the same corridor with no security entrance for communal tenants).

The providers who do are: HSBC, YBS and Nationwide (because the latter already mortgage the property).

I have heard that once these sort of rules are put in place by providers it is VERY rare that they go back on them. Meaning we could struggle to re-mortgage or find buyers in the future

The flat we want to buy has this access (even though its in a quite cul de sac and very pleasant) is it worth the risk?

I am not scare scaremongering with the details above, just relaying my recent experience with providers.

Thanks for your help,
Andy.

Twood

I can't comment about your specific situation however we were in a similar situation in that we purchased a property with a double story single skin extension. This also limits the amount of lenders howvere as we were 1st time buyers we didn't pay much attention. When we came to sell however there was a real nail-biting time waiting to see if the buyers would be able to get a mortgage.

I now wouldn't buy any property that I thought would have a feature that would limit lenders - I always have one eye on re-sale!

fakiee

Thanks Twood,

That's the predicament we are in, 2-3 years ago mortgage providers would have no problem on lending on this type of property (except the post office who have never done it).

Now very few will, and from what I have heard once providers put these rules in place they RARELY remove them. This will cause problems with re-mortgaging and selling on.

Can i hope that providers will become more flexible in the future or should I take for granted that these rules will stay in place?

I know several providers already mortgage the identical flats in the same block (santander, nationwide, halifax & woolwich), is it more likely they will mortgage the property (I am waiting back from underwriters with a few of them).

Thanks for your help!