Ex-Local flats in London

Chris12345678

Hi there,

Is the general consensus that these are effectively impossible to get a mortgage on? I'm aware of the pitfalls regarding service charges, potential major works, etc, but the differences in price, room size and location can be very significant.

Estate Agents I've spoken to suggest that even for large (maybe six storey) buildings they have had clients able to get mortgages from high-street banks in the past, I'm wondering if that may have been at the peak of the credit boom and now private developments, converted terraces etc are all that it's worth looking at?

I'm a FTB with a large deposit but will still be looking for a mortgage of at least £50k given prices in the areas I'm interested in.

Any advice will be appreciated!

Dave_Ham

They will pretty much be "subject to valuation" although there is some risk here.

Typically Halifax and Woolwich are more flexible, but check with the lender in advance..


All the best

Chris12345678

can you explain "subject to valuation" - would this basically mean after an offer is accepted I'd pay a fee, they'd have a valuer go in and maybe turn me down, keeping the fee if they didn't like it? How would I know if they'd be likely to?

Dave_Ham

Therein lies the issue.

You would have to pay a valuation fee that you would not get back.

Sometimes a bank will just say no on a certain block, or specific area of ex local places.

Sometimes they will say maybe, based upon a surveyor going out and stating it is suitable security for the bank..

Be mindful that why risking the valuation fee (£350 ish) is minor as if you buy a property like this and then a lender decides they will stop lending on this "area" you may find yourself unable to sell at any point if any buyer can not find a lender that will "lend"

Hope this helps...




Dave

Conrad

Chris12345678 wrote: »

I'd pay a fee, they'd have a valuer go in and maybe turn me down, keeping the fee if they didn't like it? How would I know if they'd be likely to?

There are way too many variables to be able to pre - judge;

+ Galleried landings are a no go usually
+ Dark back alleys full of rubbish are a minus
+ Concrete construction is particularly problematic
+ Lifts are a negative as they often need costly maintenance and some owners refuse to pay thier share meaning other flats become difficult to shift
+ Level of arrears in the erea has an impact - so if you try Halifax and they have a higher than norm arrears number in the locailty, thats a miunus
+Lender exposure in the block - no lender wants exposure to too much of one block



It's up to you to weigh the pro's and con's and decide if you want to risk a val fee, this is not a scientific tick box excercise as in the end the valuers opinion is where the buck stops.

Serious minded adults understand that buying home means costs may be incurred without sucess.

No point asking agents, they wont have time for someone wanting a load of time vampire information, afterall they get paid on sales only and in my experience like dealing with quick minded can - do folk who take a chance and don't tend to have time for tyre kickers

This I think is the reason so many people claim EA's are rude and arrogant - but really it boils down to EA's early on realising tyre kickers have a mUch lower chance of doing business, so are not good to waste prescious time on, afterall the tyre kickers themselves wouldn't give thier own time away for free.

NOT AIMED AT YOU OP - this is more a genral comment as it may help some readers to get inside the mind of EA's especially those buyers who tend to find EA's rude.

Wh05apk

If you go through a broker, they should be able to contact the valuer who will give an "indication" of whether there could be any issues. The valuer should be local and will normally know beforehand whether there are likely to be any areas of concern with the property.

Chris12345678

Thanks for all the info - food for thought.

One last question on this - if the worst happens - I go ahead with an offer, get a mortgage lined up, the valuer doesn't like it and I bite the valuation cost and whatever I've paid for solicitors up to then, would the presence of that credit search etc on my credit report disadvantage me if I came to apply for a mortgage elsewhere soon afterwards?

Conrad

Chris12345678 wrote: »

Thanks for all the info - food for thought.

One last question on this - if the worst happens - I go ahead with an offer, get a mortgage lined up, the valuer doesn't like it and I bite the valuation cost and whatever I've paid for solicitors up to then, would the presence of that credit search etc on my credit report disadvantage me if I came to apply for a mortgage elsewhere soon afterwards?

No, you'll be fine.

I'd usually suggest not paying anything to Solicitors until valuation result known, but bare in mind some lenders can take weeks to get the valuation done, for example those that like to do all the underwriting up front (which is to protect customers incidentally).

Service wise I find Natwest / Rbs, Abbey (Santander) and Woolwich (Barclays) to be quite bad. Woolwich use overseas processing depatments which is fun.

If you were my Brother I'd be suggesting a nice little local Building Society - so much better to deal with real thinking people. They are often more flexible on non standard property types.

There's more to life that slavishly hunting for a supposed best deal.