Not Suitable Security - What can we do?

monkeydust_2

We are currently trying to re-mortgage our ex-local in south london and got stuck. The property and block are in excellent condition and there is a track record of sales. However a ING did a survey via Legal And General and they came back with "not suitable security". Is this is a sign of a some wider problem or just something with that particular surveyor? Do I have any grounds to appeal directly to ING?

Thanks in advance

Martin

GMS

Lenders have different criteria as to what they will lend on. If ING do not lend on ex local flats then there is no appeal to be made. It is outside of their criteria, simple as that.

It may be possible to find a lender elsewhere. One lender rejecting does not necessarily mean there will be issues with others.

Have you been told why it is unsuitable security?

kingstreet

As GMS asked. What's the problem?

How many floors in the block? What floor is the flat on? What's the construction type? Who's the existing lender?

Last question - was ING aware of the problem before it went to valuation? (ie if it knew it was on a floor it wouldn't lend on, did it spend your fee when it shouldn't have?)

monkeydust_2

Sorry for delay - basically its 7th floor (top floor) - 30 flats - 80% private. The surveyor was concerned about re-sale even though we have had 4 in the last 3 years. Which lenders are more open to ex-local apart from Abbey? I tried to appeal to ING but no luck. I got the fee back though but would rather have had the re-mortgage. Any brokers out here who can help with this type of situation please PM me. Cheers MD

kingstreet

http://www.independent.co.uk/life-style/house-and-home/property/lenders-tighten-the-rules-on-exlocal-authority-properties-499782.html

Lenders prepared to take on former council flats include Nationwide, which will lend on most ex-local authority properties on the condition the block is well maintained, and Britannia, which is happy to lend in tower blocks, as long as they are at least 80 per cent privately owned. Halifax says it will look at each flat on its own merits. Yorkshire Building Society will lend on blocks of up to six floors.

It was 2005 though!

kingstreet

Nationwide;-

We will not accept former local authority flats in blocks of more than five storeys

That article might not be much use then.