Help

Matt1982

Hi

Does anyone know mortgage lenders who will lend on:-

'External walls consist of a timber frame clad with render on metal mesh on plywood'

Surely someone will lend on this otherwise it wouldnt of been built?

Thanks in advance

kingstreet

I've never come across a lender who would lend on this construction. Sorry.

GMS

Do you know the construction type name?

Is this a purchase or a remortgage? If a purchase you need to consider very carefully as if you are struggling to arrange a mortgage to buy it then the same situation may well apply if and when you come to sell with any prospective purchaser struggling to arrange finance.

herbiesjp

It doesn't sound like anything I have come across previously.

However, brokers can normally get an insight as to whether or not a mortgage is possible, by getting in contact with the surveyors a given lender might use.

Can you ask your broker?

holly_hobby

The only lender (that I know of) who did lend on timber framed properties was Chelsea BS (pre merger with YBS). Which may have since changed - as Kings is a current adviser I would go tend to go with his view, so presume everyone's out.

However, it may not do any harm just to give YBS a quick call to see if they adopted the Chelsea stance re this construction type.

The issues for the lender re this type of property construction are all to do with hightened risk of complete destruction by fire damage and exposure to decay/rot/infestation - affecting the insurability of the building and the lenders security.

The only suggestion for the current owner would be to have this elevation replaced with standard construction, or hope for a cash buyer (who sees past the possible issues), but would face the same insurace issues/resricted market if they tried to sell on themselves at a later date.

Sensible solution would be back to house hunting for you I think !

Sorry if this isn't what you hoped to hear ..

Hope this helps

Holly

Matt1982

Hi All

Thanks for your quick responses. Its a remortgage. Currently got a mortgage with Natwest and looking to arrange a 2nd charge. Surveyor has currently said 'majority of lenders' will not lend on it and therefore he cannot give a value!

Fair enough that not everyone will lend but by him saying majority wont lend he must agree that some will so surely this gives it a value and not the £0 he has currently said. I appreciate that with not everyone lending on it this would reduce the value though.

The secured loan company have said they will lend on the property if he confirms mortgageable and gives a val.

Currently appealing the valuation and was just hoping to say x,y and z would lend (even if LTV restrictions).

Thanks all.

Thrugelmir

Matt1982 wrote: »

Fair enough that not everyone will lend but by him saying majority wont lend he must agree that some will so surely this gives it a value and not the £0 he has currently said. I appreciate that with not everyone lending on it this would reduce the value though.

Property best suited to cash buyers. Without something comparable to base valuation on. Then the surveyor is unlikely to wish to commit for a lending transaction.

herbiesjp

Sorry to be pedantic - this is not a remortgage. This is capital raising with a second charge lender.

As you already have a mortgage with NatWest, can they not give you the extra funds?

Matt1982

Thrugelmir wrote: »

Property best suited to cash buyers. Without something comparable to base valuation on. Then the surveyor is unlikely to wish to commit for a lending transaction.

The surveyor himself as provided 2 comparables on his valuation report.

To be honest his valuation report contradicts itself.

Matt1982

herbiesjp wrote: »

Sorry to be pedantic - this is not a remortgage. This is capital raising with a second charge lender.

As you already have a mortgage with NatWest, can they not give you the extra funds?

No worries on the pedantic side of things.

Natwest cannot assist due to other reasons. I have a 2nd charge lender willing to lend if he confirms mortgageable and gives a value.

So thats 2 lenders (Natwest and 2nd charge provider) who saying mortgageable. I appreciate the surveyor has a job to protect the lenders interest and also his own professional expertise but he just done half a job here. Surely if only one lender will lend the property is mortgageable? I know then a knock on effect of the actual valuation but doesn't mean its worth nothing.

Stage one of my appeal is in.

Thanks all.

kingstreet

Would NatWest lend on it if you wanted to buy it today?

Criteria has tightened considerably in the last few years. What was mortgageable in 2007 may not be now.