Mortgage when less than 6 months from last sale

Dave_Ham

I would say to ensure you either has this in writing from Platform or you have the full name of the person you spoke to.

The logic sounds fine in regard to valuation no more than previously paid as that is what the banks are protecting against, although I am surprised they have made this acceptable.

I am confident you sound pragmatic and have already checked what it was sold at, but would check Platform are working off the same page as you do not want any costly errors on their parts post acceptance.

I am not trying to scare you off the auction, rather just 100% be sure what you are entering into as many non professionals get their fingers burnt at auctions...

I also assume, that you will get the mortgage offer prior to auction so nothing else can come out of the woodwork..

Good luck, be interested how this goes for you and with a good solicitor and prudent approach I am confident you will be fine...

sockpuppet

This, from Platforms current lending policy:

Properties purchased by the vendor within the last 6 months - Platform will only lend on the original purchase price
unless the property type has been changed i.e. a house converted into flats

Dave_Ham

sockpuppet wrote: »

This, from Platforms current lending policy:

Properties purchased by the vendor within the last 6 months - Platform will only lend on the original purchase price
unless the property type has been changed i.e. a house converted into flats

Good call and unusual (just got into my lenders notes book) but this is not totally transparent and with what is at risk I was just saying please double check and have come back.

For a stupid example, say the OP bought this at £10k less than the vendor purchased for - is this within policy?

kmmr

Thrugelmir wrote: »

Have a budget and stick to it.

Don't appear to be an eager bidder.

Have you viewed the inside of the property?

Dave_Ham wrote: »

I am not trying to scare you off the auction, rather just 100% be sure what you are entering into as many non professionals get their fingers burnt at auctions...

I also assume, that you will get the mortgage offer prior to auction so nothing else can come out of the woodwork..

Good luck, be interested how this goes for you and with a good solicitor and prudent approach I am confident you will be fine...

We did look inside, and it was in very good clean condition, if very basic. It looks like the carpets were removed so there was only the underlay, but overall good condition with a new basic kitchen and no damp etc visible.

Our plan was to take a very spacious 1 bed masionette (over 3 levels) and convert it into a 2 bed masionette. It would have been a lovely project, but I think we have found the reason it is being sold!

It seems the freeholders are refusing any consent at all to move walls, or move any plumbing. The masionette is over 3 levels, but technically the space between the ceiling of one level and the floor of the next isn't demised, and the freeholders are refusing consent to put any plumbing into those voids, even though they are fully contained within the upper maisonette.

Today (the day before the auciton) the solicitors have been uploaded some new documents showing increasingly fractious emails and letters between the current owners and the freeholders. The freeholders come across as very difficult over multiple petty issues, and as they live downstairs they are refusing any work to be done on the flat at all, constantly referring the owners back to lease covenants that don't really say what the freeholder thinks they say. For example, they complained that the plans indicated that the doors would always be open as they are open on the plans (!!), and one sketch of a bathroom showed a toilet where their flue was - and they sent URGENT emails to address this. Bearing in mind this was just a preliminary sketch the architect was just putting a few icons in to show it was going to be a bathroom, not actually designing the location of every item.

Good luck to them on the sale! It's a great project, but if the freeholders refuse to let anyone touch it, it's simply a money pit. Glad we found out before auction!

Dave_Ham

kmmr wrote: »

We did look inside, and it was in very good clean condition, if very basic. It looks like the carpets were removed so there was only the underlay, but overall good condition with a new basic kitchen and no damp etc visible.

Our plan was to take a very spacious 1 bed masionette (over 3 levels) and convert it into a 2 bed masionette. It would have been a lovely project, but I think we have found the reason it is being sold!

It seems the freeholders are refusing any consent at all to move walls, or move any plumbing. The masionette is over 3 levels, but technically the space between the ceiling of one level and the floor of the next isn't demised, and the freeholders are refusing consent to put any plumbing into those voids, even though they are fully contained within the upper maisonette.

Today (the day before the auciton) the solicitors have been uploaded some new documents showing increasingly fractious emails and letters between the current owners and the freeholders. The freeholders come across as very difficult over multiple petty issues, and as they live downstairs they are refusing any work to be done on the flat at all, constantly referring the owners back to lease covenants that don't really say what the freeholder thinks they say. For example, they complained that the plans indicated that the doors would always be open as they are open on the plans (!!), and one sketch of a bathroom showed a toilet where their flue was - and they sent URGENT emails to address this. Bearing in mind this was just a preliminary sketch the architect was just putting a few icons in to show it was going to be a bathroom, not actually designing the location of every item.

Good luck to them on the sale! It's a great project, but if the freeholders refuse to let anyone touch it, it's simply a money pit. Glad we found out before auction!

Well done doing your research and another special mention to your solicitors - investment nightmare..

All the best with the next project..