Mortgage refusal due to Pylon - Help needed

boycies

Hello,

My girlfriend and I are in the process of buying our first home. Everything was going fine until we had the survey done on the property we are buying.
Bristol & West have refused to lend us becasue there is a pylon near by. In the survey it states:

"There is high voltage electricity supply equpment close to the property in the form of cables that pass over the roof line. The possible effects of electromagnetic fields have been the subject of media coverage. Public perception may affect marketability and future value."

We were now thinking of going with the Nationwide for a mortgage, but we are not sure if this will be the same, and we don't want to fork out for another survey.

Also we are not entirely sure of the legislation and actual evidence of any health risks.

We need to know if there is a way we can find out whether Nationwide will lend to us or not taking this into account. (we have called them, but they said they will only be able to tell us for certain after a survey)

Also if we can find out more about pylons and maybe this one in particular...

Really appreciate any help you guys can shed on this one.

Cheers

A_Nice_Englishman

Personally, I would look elsewhere.

Even if you don't think the power lines are a problem Bristol & West's surveyor is right and the house will be very difficult to sell.

I know of two properties like this locally which have been on the market for months.

AndyWallace

What is the purchase price and what is the valuation amount?

Andy

boycies

It was the same - £170k. Its in a really good area and houses of this type don't come up often. We offered full asking price just days as it came on the market because they go so quickly! We were really happy but now things have gone a bit pear-shaped!

AndyWallace

Personally, I would challenge the lender on this. The valuers say that the pylons could affect marketability and future value but have still placed a full valuation on it with this in mind.

I would ask that the lender instructs a second valuation at their own cost if they are unwilling to make a mortgage offer based upon an 'expert' 'independent' valuation by an 'RICS' surveyor. Afterall, the survey was carried out on their behalf and for their benefit. If it subsequently transpires that the survey was incorrect then the lender will have redress against the surveyor.

I've had loads of problems with Bristol & West surveys in the past. And TBH usually get nowhere with them either, but the fact of the matter is that they have instructed an independent valuation for mortgage purposes that they should be willing to rely on. Or at least refund your survey fee.

Andy.

dunstonh

The lender is quite within its right to not lend on a property it feels could have issues to resale in the future.

The concerns seem valid enough for a refusal.

What has your whole of market mortgage adviser said about this? They could check with alternative lenders underwriters to see who will be willing to consider a higher risk property.

toonfish

I'd be more concerned about the health implications rather than resale - look for another house

Barney088

I'd challenge the lender too, if this is unsuccesful then you will have a copy of the report which you could show new lenders and see what they thnk, get an "agreement in principle" which will cost you nothing.

AndyWallace

dunstonh wrote:

The lender is quite within its right to not lend on a property it feels could have issues to resale in the future.

The concerns seem valid enough for a refusal.

This is quite true and I probably wouldn't consider the property myself, but the lender has its own panel of surveyors and should be 'willing' to take their valuation of the property at face value.

My concern here would be that the client has paid for a survey from their own funds, the valuation has been done and come back satisfactory. So why should the client be out of pocket here? As a broker I would challenge the lender on this, it may be that the decision maker was having a bad day.

Andy.

boycies

Thanks guys,

Well we had paid £470 for the survey and they say we will get £270 back.

The nationwide survey will cost us an extra £375 - but we aren't sure whether they have policies on pylons.

My Mortgage advisor contacted the top 5 lenders for our situation. 2 said no 2 said maybe depending on the survey and 1 said yes.

AndyWallace

boycies wrote:

Thanks guys,

Well we had paid £470 for the survey and they say we will get £270 back.

The nationwide survey will cost us an extra £375 - but we aren't sure whether they have policies on pylons.

My Mortgage advisor contacted the top 5 lenders for our situation. 2 said no 2 said maybe depending on the survey and 1 said yes.

I'd want the full £470 back.

Andy