Mortgage valuation- unlikely to comply with building regs

bodmil

Hullo hullo, just wondering if anyone can help? Last week the valuation came back with a comment that the 2nd bedroom in the loft with spiral staircase access is unlikely to comply with building regulations and has been viewed as a storage area only. I will be renting the 2nd room to a lodger and would very much like the option to rent it out fully in the future so I'm concerned about the mortgage lender or insurance companies allowing this.

I've got a full survey due next week and the estate agent says the vendors have some paperwork confirming that it is ok but I haven't seen this yet.

Anyone had any experience of this? I know valuers don't have the best reputation for doing a thorough job so maybe it's all fine but can anyone guess at possible outcomes and how to get around it?

Thanks!

DannyboyMidlands

I think that you are being a bit hard on the valuer. They have said that in may not comply with building regs, have drawn your attention to it and said they will not include it as a habitable room in their valuation. Fair enough really.

From the description of the stair and the fact that a lack of fire enclosure would be obvious to the valuer, I suspect that the EA is full of crap and that the thing doesn't comply. Don't spend any more money until you have seen this "paperwork". My gut feeling is that you will not end up buying this place.

There could be all sorts of issues. In my opinion, the main one being fire safety but also structural adequacy, insulation, access.......... the list goes on.

How do you get around it? Not advisable. Without BR you can't go renting this out. If the worst happens you could be looking at dead tenants and jail time.

bodmil

Ooops, well I've agreed to a survey which I'm guessing will confirm or deny the issues you've brought up. Oh dear... I am prepared to walk away if needs be.

DannyboyMidlands

What kind of survey have you gone for? They might end up saying pretty much what has already been said ie "may not comply, should be investigated further etc.".

Chase the EA for the paperwork. If it exists then nothing to worry about.

If it doesn't then get some advice on bringing the place up to standard and reduce your offer accordingly. Or walk away.

Out of interest was the place advertised as 2 bedroom?

bodmil

Does this imply that my mortgage offer is based on the flat being a 1 bedroom? Therefore if I can later provide proof that it is a compliant two bed, will I need to have a second valuation and/or reapply for the mortgage?

bodmil

DannyboyMidlands wrote: »

What kind of survey have you gone for? They might end up saying pretty much what has already been said ie "may not comply, should be investigated further etc.".

Chase the EA for the paperwork. If it exists then nothing to worry about.

If it doesn't then get some advice on bringing the place up to standard and reduce your offer accordingly. Or walk away.

Out of interest was the place advertised as 2 bedroom?

I've instructed a full structural survey and I have forewarned the surveyor of the issues and am trying to get this paperwork to him prior to looking at it so that it can be investigated further right away.

The estate agent has said that the vendors have forwarded this to their solicitor. Is this something I can just get directly from them to speed things up?

Yep, it's advertised and currently in use as a two bedroomed flat.

DannyboyMidlands

Have they agreed to lend based on your current offer price?

DannyboyMidlands

bodmil wrote: »

I've instructed a full structural survey and I have forewarned the surveyor of the issues and am trying to get this paperwork to him prior to looking at it so that it can be investigated further right away.

The estate agent has said that the vendors have forwarded this to their solicitor. Is this something I can just get directly from them to speed things up?

Yep, it's advertised and currently in use as a two bedroomed flat.

I imagine their solicitor will pass it to yours. Just take your time.

I strongly suspect that the flat layout wouldn't allow a BR compliant stair to be installed without taking up too much space. Then, as the thing didn't comply anyway, they probably cut a load more corners. Spending about £5k rather than the £15k needed to do it properly.

bodmil

DannyboyMidlands wrote: »

Have they agreed to lend based on your current offer price?

Yep, no caveats on the mortgage.

DannyboyMidlands

bodmil wrote: »

Yep, no caveats on the mortgage.

So the mortgage is fine.

You just need to satisfy yourself that you are getting what you thought you were getting when you made the offer.