What do mortgage lender deem to be an uninhabitable property?

gwernybwch

I did some viewings on a couple of houses this week, where the previous occupants were elderly and therefore the properties hadn't been internally updated in many, many years (although externally they seemed fine).

I've since read that some mortgage lenders turn down mortgage applications on what they deem to be an 'uninhabitable property'.

Can anyone provide any guidance on what criteria a mortgage lender or surveyor uses to deem that a property is 'uninhabitable'?

I'm assuming that the mortgage lender ultimately bases their decision on the advice of a surveyor, but if you just arrange a valuation report, does this get around the surveyor potentially drawing the attention to the lender to these are houses that need renovating?

Thanks in advance for any replies.

holly_hobby

Basics are habital i.e no holes in floors/roof etc ..! With a functioning bathroom, kitchen facilities, connection to utilities.

Although habital, a surveyor may raise further issues resulting in the requirement of a full or partial retention, until stated works are complete and have been re-inspected.

Hope this helps

Holly

gwernybwch

Thanks for the reply.

holly_hobby wrote: »

Although habital, a surveyor may raise further issues resulting in the requirement of a full or partial retention, until stated works are complete and have been re-inspected.

Would a surveyor potentially make these comments on a basic valuation or just if a full structural survey was comissioned?

GMS

Any potential lender would instruct a valuation for their own purposes to ensure that the property was adeaquate security.

As Holly said if there were no basic sanitation facilities it would be unsuitable for mortgage purposes. If the surveyor decided works were necessary he may recommend a retention. This could be a full retention, i.e no funds released or a part retention where a portion of funds would be held back until works completed and property re-inspected by the surveyor.

If the property in question is just old fashioned then you may find it to be ok. If it is decor and fittings such as kitchen and bathroom being old but functional, and property structuraly sound then should be fine.

Issues could be with the electrical system not meeting current regulations, possible damp and general items of replacement required due to age.