Un-mortgageable flat - advice needed!

eddj1

Hi,
We had a buyer on our basement flat who tried to get mortgages through three different lenders, the last being the lender who we currently have a mortgage with - they all refused based on valuations from two different surveyors, something to do with no windows downstairs therefore no natural light or ventilation. Our buyer has now understandably pulled out. The mortgage was only given to us four years ago, nothing was mentioned on the valuation report we received, which we have a copy of, and as far as we are aware no legislation has changed.
My main queries are -
Where do we stand with having a mortage that was approved four years ago that they are now refusing for anyone else?
Where do we stand with paying for a mortgage on a property that the current lender says is unmortgageable?
Have we got any comeback against our lenders for giving us a mortgage on a property that is unmortgageable?

Any advice will be greatfully recieved as we are completely stuck ourselves!
Many thanks in adavnce,

System

That was 4 years ago, this is now
You have a mortgage - keep paying
No.

ILW

Lenders change their criteria from time to time. You have no comeback.

Simon_gloster

eddj1 wrote: »

Hi,
We had a buyer on our basement flat who tried to get mortgages through three different lenders, the last being the lender who we currently have a mortgage with - they all refused based on valuations from two different surveyors, something to do with no windows downstairs therefore no natural light or ventilation. Our buyer has now understandably pulled out. The mortgage was only given to us four years ago, nothing was mentioned on the valuation report we received, which we have a copy of, and as far as we are aware no legislation has changed.
My main queries are -
Where do we stand with having a mortage that was approved four years ago that they are now refusing for anyone else?
Where do we stand with paying for a mortgage on a property that the current lender says is unmortgageable?
Have we got any comeback against our lenders for giving us a mortgage on a property that is unmortgageable?

Any advice will be greatfully recieved as we are completely stuck ourselves!
Many thanks in adavnce,

Lenders can change their criteria on what they lend on at any stage. For eg some used to not lend on ex local tower blocks, some not flat roofs.

There is nothing you can do i'm afraid, they also took the risk back then. Cash buyer only possibly.

Joe_Bloggs

Can you get CCTV installed and an air conditioning system ? Is your dwelling entirely underground ? What can your leaseholder do ?
J_B.

eddj1

Thanks for the help - unfortunately not what i wanted to hear!!

The living room is on the ground floor and you go downstairs to the bedroom and bathroom. There is already an extractor fan in the bathroom.
Unsure of what CCTV would do?

Have been researching other sites and havent found anything similar to our situation. But, if the original surveyor signed it off as habitable and now two others have deemed it un-habitable would i have any claim against them?

I think cash buyer is our only option, but with the value of the property now reducing considerably what happens when we are now in negative equity? do we have to pay the lender back in full or can we pay them a little bit back each month? Will probably be around (£10-15k)

again, thanks for your help in advance

Annisele

You can't sell it at all unless you either: have enough money (from the sale and your other resources) to pay off the mortgage in full; or come to some agreement with the lender about how to finance the shortfall.

The lender might agree to let you pay off the shortfall over time, but they don't have to and they might not. Even if they do agree, chances are that loan will be at a higher rate than you're currently paying on the mortgage.

Are the new surveyors saying that your property is uninhabitable, or just unmortgageable? They're not the same thing at all.

eddj1

Are the new surveyors saying that your property is uninhabitable, or just unmortgageable? They're not the same thing at all.

I believe that the surveys have come back saying that the property is unhabitable therfore unmortgageable. We have lived here perfectly happy for the last four years and apart from their being no window downstairs in the bedroom i don;t see how it can be unhabitable. The window in the lounge funnels some light down into the bedroom and we have a pavement window which allows light into the bathroom. Although we think the main stumbling block is the ventilation, we do have a new fan in the bathroom so we are not sure what is causing the property to be unhabitable.

It seems strange that one surveyor would say this is ok, with the habitable box claerly ticked on the valuation report whilst 2 others now say the property is unhabitable. As far as we are aware, and the estate agents are aware no legal legislation has changed.

Emy1501

I maybe wrong but years ago I neary bought a flat which had a bedroom in the basement. It had no window and I was told that legally it was not a room and therefore the flat was only really a 1 bedroom rather than a 2 bedroom flat.

Your EA should be able to advise you regarding this. Did you get a homebuyers report when you bought the place?

cattie

I've always understood that a room without a window cannot be classified as a bedroom or a habital room. It's very strange that your surveyor didn't pick up on this & warn you. What kind of survey did you have? I hope you didn't just go for the lenders valuation, as it's very basic & is for the lender only, it provides no information for the buyer?

eddj1

Thanks for the advice.

We did only have a valuation survey, although one of the questions is 'Is the room habitable?' which has been ticked as yes. If no window makes a room unhabitable am I right in thinking this shouldn't have been ticked and therfore a mortgage not given.