Mortgage refused on property which is already mortgaged with the same bank

hunnie

Hi,
can you rent off the flat? Will Abbey/Santander consider giving you consent to let?
Some lenders will consider rental income when working out how much you can borrow
so this could help you to buy another property.
Regards,
Hunnie

BitterAndTwisted

One of the main considerations when buying an ex-Local Authority high-rise is the MASSIVE potential for future liability for refurbishment costs as well as spiralling service-charges, especially where there are lifts. Imagine what sort of contribution would be demanded if they had to be replaced?

As I said before, I believe that the OP has had a very lucky escape from a potentially disastrous situation

geoffky

The purchaser would be wise just to walk away as the bank has considered the property a very high risk and therefore you need to heed this.As for the owner you need to stipulate in your advert that it is a cash only sale...You are both victims of tighter lending criteria s which I agree with as anyone who could breathe was allowed a mortgage hence a lot of problems.

taxsaver

.... and yet he seems determined to jump in front of the bus regardless!! :eek:

taxsaver

geoffky wrote: »

anyone who could breathe was allowed a mortgage hence a lot of problems.

... erm, I'm not at all sure that WAS a requirement!

balich

poppysarah wrote: »

What lifespan has the building got?

I think the building was build in 1967. It is a brick build and the owner has had to pay 7,600 on off payment to renovate it already about 3 years ago.

balich

Thanks for your input everyone! It seems that the lending criteria has changed and it is very difficult to buy such properties. I am certainly reconsidering now on whether to persit on finding ways to buy the property and will let you know in the near future of the outcome.

If anyone else has had a similar experience please post here. It would be interesting to hear.

poppysarah

balich wrote: »

I think the building was build in 1967. It is a brick build and the owner has had to pay 7,600 on off payment to renovate it already about 3 years ago.

Similar age blocks in Manchester are in need of their second lot of concrete repairs ... Concrete fatigue seems to have hit them badly.

8 storeys all brick?

JoannaK_3

yes the block is made of briks only, there are still some lenders borrowing money on those kind of properties, but it's not that easy. We didn't simulate in our advert that we want the cash buyers only as we didn't know the criteria had changed this much. I still think banks should be band from being allowed to refuse mortages on the properties which they have alredy borrowed money for once.
And the building was build in 1976.

hcb42

banks can lend money based on whatever criteria they like/feel are appropriate risk. It would not be appropriate for them to be banned from doing this