What effect does non-standard construction have on value?

Better_Days

This property is a pre-fab with a brick skin:
http://www.rightmove.co.uk/property-for-sale/property-33849205.html

Lots of interest, going to sealed bids.

Any thoughts on how much the construction will affect the value?

cattie

Lots, do you ever watch Under the Hammer? They come up on there every so often & bids never seem to go very high as mortgages are difficult if not impossible to get on some of them.

GDB2222

Lots of people will bid plenty, but whether they can get a mortgage is an entirely different matter.

Owain_Moneysaver

The value of that house is, I suspect, in the plot. You could probably get 2 bungalows or 3 2-storey houses on it, even more if you can get the agricultural restriction on the paddock removed.

The fact that it's a detached bungalow (and so less vulnerable to structural problems compared to a 2-storey or semi-) and there's value in the land mean it may be mortgageable with a sizeable deposit.

Better_Days

Thanks, any ideas on the rough percentage reduction on a pre fab?

EA told me that putting a brick skin on the pre fab enabled buyers to get a mortgage!

GDB2222

Better_Days wrote: »

EA told me that putting a brick skin on the pre fab enabled buyers to get a mortgage!

in the immortal words of Mandy Rice Davies, "he would say that, would'nt he?"

Seriously, if you are really interested in buying, get some advice from a surveyor who knows the type of construction used in the property. Alternatively, put in an offer on the basis that there is no reduction in value due to the construction, and then reduce your offer once you get the survey report in.

Better_Days

Seriously, if you are really interested in buying, get some advice from a surveyor who knows the type of construction used in the property. Alternatively, put in an offer on the basis that there is no reduction in value due to the construction, and then reduce your offer once you get the survey report in.

Thanks GDB2222

Definitely need to do some more research on this one.... DH very enthusiastic about this property, but I am a bit more cautious, although it is in a lovely spot. The construction is not mentioned in the details, which may well skew the initial offers (until surveys are done!).

GDB2222

it certainly seems a fantastic size of plot, and a great location. I would be a bit put off by the closeness of the junction with the main road and the de-restricted speed limit sign just outside the front door. I can imagine people coming round the corner and then accelerating noisily up to 60 miles an hour past the front door. Still, I have no idea how busy the roads are around there.

Owain_Moneysaver

Better_Days wrote: »

EA told me that putting a brick skin on the pre fab enabled buyers to get a mortgage!

That depends on what sort of prefab it was and how the work was done - and whether there's a guarantee on it.

If it was just cosmetic work and the underlying concrete (assuming its a precast reinforced concrete (PRC) house) remains, then the house remains defective and unmortgageable.

You need a specialist surveyor with experience of PRC properties and your solicitor needs to make enquiries about certificates and guarantees for the remedial work.

And I query whether that sunroom extension to the kitchen meets Building Regulations either.

phill99

Better_Days wrote: »

Thanks, any ideas on the rough percentage reduction on a pre fab?

EA told me that putting a brick skin on the pre fab enabled buyers to get a mortgage!

You will probably find that the non-standard construction has already been accounted for by tha valuation that the estate agent has done.

They wll know the problems and the difficulty selling them due to the unmortgageability,. What do other 3 bed (standard construction) detached bungalows in that are go for? A lot more I guess.

And in terms of the EA advising you that because it has a skin, then you could get a mortgage - thats rubbish. Remember if you coat a turd in sugar, it still tastes of sh%t when you bite into it.

Gallstones

Wife used to be a mortgage broker, and she really struggled with this type of property. apparently there is an ingredient in the prefab which causes it to degrade over time and thats why lenders don't like them. Brick skinned or not, this is going to give you trouble, not only with buying but if you want to sell in future you could end up waiting a long time for a cash buyer to come along as lenders are getting more and more fussy about who/what they lend on.

Phil is right about the majority of estate agents, they are not regulated so they can tell you whatever lies they want and get away with it apart from the property misdescription act

don't buy it.