Buying a house built with concrete blocks?

kh904

Hi, i'm a first time buyer who's seen a property that i'd like to put in an offer.

It's an ex-local authority 3 bedroom terrace house, in need of some modernisation. It's within my budget, have deposit etc etc.

The problem is that I have been told that it's built with concrete blocks (and then rendered on the outside). The estate agents have also said that the availability of a mortgage may be limited due to the way it was constructed.
My parents were refused a mortgage for their previous home on the same basis.

Any advice or specific q's to ask, before even considering paying for a surveyor?
It seems that it would be difficult to sell in the future if it means buyers will find it difficult getting a mortgage on the property.

Most of the homes on the road I believe are constructed the same way, and I believe that many of them are now privately owned (right-to-buy). So surely it can't be a major problem.

The estate agent says that they could sort the mortgage for me, but I don't feel comfortable, as they have an interest in the home being sold- conflict of interest.
Doing a survey and mortgage independently of the estate agent seems sensible.

Anyone have any expert advice when it come to buying concrete block built homes?

Many thanks!

Richard_Webster

Find out precisely what type of house it is - as much detail as possible. Sometimes a company could have made more than one type of house e.g Reema Hollow Panel are classed as "Defective" unmortgageable without repair and lenders vary as to the kinds of repair and certification they require if a repair has taken place.

Reema Conclad are not defective, nor are e.g. Wimpey No Fines, but some of the smaller lenders still won't touch them but people like Halifax and Barclays will do so.

kh904

Thank you for the reply

I believe (not confirmed), that it's big concrete bricks/blocks ie like breeze blocks??? and it has rendered plaster on the outside. Other homes on the street are the same, or have pebbledash.

As mentioned before, some of the other homes on the same road have been sold by the council to their tenents, so getting a mortgage isn't impossible.
However, the availability of a mortgage on the property is limited due to its construction.

tbs624

You may find it useful to have a look at an article called "Non-traditional housing in the UK– A brief review" written by Keith Ross from the BRE (Building Research Establishment). There are links within it to BRE papers on the specific types of Non standard construction properties.

Will check bookmarks for direct link. Edit - see here

There are specialist mortgage lenders - as Richard says, you need to know exactly what type the property is. Contact the RICS (Royal Inst of Chartered Surveyors), the Inst of Structural Engineers link and the CML (Council of Mortgage Lenders) for further guidance.

You may also find this interesting. I have no personal links with the firm but their site shows what can be done with these properties.

Mrs_Money

An estate agent told me recently that Halifax will give mortgages on non-standard construction properties- may be worth a try?

Sorry can't vouch for Halifax - or the estate agent come to that!

In recent experience, it seems that estate agents can get you a mortgage - but probably with a bigger deposit than you (or anyone else!) can realistically afford.
Good luck with it - sounds like a good possible investment. I think older LA properties are usually fairly sound- well round my way they seem to be anyway.

kh904

Mrs_Money wrote: »

An estate agent told me recently that Halifax will give mortgages on non-standard construction properties- may be worth a try?

Sorry can't vouch for Halifax - or the estate agent come to that!

In recent experience, it seems that estate agents can get you a mortgage - but probably with a bigger deposit than you (or anyone else!) can realistically afford.
Good luck with it - sounds like a good possible investment. I think older LA properties are usually fairly sound- well round my way they seem to be anyway.

I have a mortgage decisicion in principle from the halifax (through the estate agents that are selling the property) and 30% deposit.

shortchanged_2

Best thing is to steer well clear of non standard construction houses. You would probably find in the future it would be difficult to sell if you wanted or needed to.
They are probably not worth the hassle.

tbs624

shortchanged wrote: »

Best thing is to steer well clear of non standard construction houses. You would probably find in the future it would be difficult to sell if you wanted or needed to.
They are probably not worth the hassle.

On the contrary, bought at the right price they can be a very worthwhile purchase (see Artful's post above) :many of these properties are on larger than average plots of land.

Mrs_Money

kh904 wrote: »

I have a mortgage decisicion in principle from the halifax (through the estate agents that are selling the property) and 30% deposit.

Goodness me - 30% thats horrendous! Still, if you can manage it I suppose that's less mortgage interest to pay in the end.

Other posters have a point - have you thought about the implications when you come to sell on?

shortchanged_2

tbs624 wrote: »

On the contrary, bought at the right price they can be a very worthwhile purchase (see Artful's post above) :many of these properties are on larger than average plots of land.

But haven't you noticed that even during a property boom these properties are difficult to shift and immensly so during a property slump.

They certainly are not top of most buyers lists.

kh904

Mrs_Money wrote: »

Goodness me - 30% thats horrendous! Still, if you can manage it I suppose that's less mortgage interest to pay in the end.

Other posters have a point - have you thought about the implications when you come to sell on?

I think you misunderstood me. I have 30% deposit saved that I want to put down (regardless if it's this property or anyother), to minimise
the monthly repayments.
The banks haven't specifically required 30%!

Regarding selling on, yep that's my concern, but the selling price has been reduced to reflect that.