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Auction property mortgage

Hi all I am new here and is very much appreciated if anyone of you out there can help me with problem below.

I have decided to buy a repossessed property which is an unsold lot from auction house. Before tabling an offer I have went for legal document check and mortgage application to obtain Principle agreement. However the bank have insisted to do a valuation before they could offer anything and for that reason I have to pay 300+ to get the valuation done. It took them 2 weeks just to get the valuation done and at the end of it they simply said the application was rejected! For me the reason they rejecting the mortgage to the property is unreasonable but would love to know what's your view and any other resort I could still have (Or even appeal?!)

They said due to it being basement flat the light level is too low. And there are rubbish in front of window bays. Both the 2 bedrooms are too small.

I have been to a few other auction property and this is by far a much better proposition in terms of its current state which require only minor paintwork but the valuer seems to come from the other world.

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,382
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Forumite
    Problem is, they're lending you their money so you can buy an asset. If you don't pay them back, they'll want to sell the asset to get their money back. If they don't feel that the sale of that asset will cover what they've paid to you, they won't want to go ahead.

    And that's very difficult to argue against, as it's their money at the end of the day.
  • I am not surprised, either. When properties don't sell in the normal way, they go to auction. If it won't even sell in an auction, then that's telling you something.

    You may, or may not, be right in your assessment that a lick of paint would make it a desirable property, then the way to buy it would be a re-mortgage on some other property in which you have sufficient equity.
  • Thrugelmir
    Thrugelmir Posts: 89,546
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    I am not surprised, either. When properties don't sell in the normal way, they go to auction. If it won't even sell in an auction, then that's telling you something.

    The lender may feel the same way. Better quality property to lend against in the the current marketplace.
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