Nationwide Mortgage Rejected after Valuation

BitterAndTwisted

I think the lender is doing you a favour. Buyers of ex-Local Authority high-rises are known to get stuck for absolutely MASSIVE service-charges and heart-stopping bills for improvement works. If I had a choice I'd look for something else.

movinghelp

We're buying it to live in but when we come to sell it in around 5 years hopefully we won't be too restricted as it is fine to get a mortgage on for a BTL.

Thanks for clarifying kingstreet. Yes they did ask those questions, except for the lift, and we gave them all the info. They definitely knew it was 5/6 floor ex-local authority. I'm not sure how I'm supposed to know the % of private ownership either, assuming the council wouldn't give me this info?!

movinghelp

Well it's not actually classed as a high rise for Santander as there's only 6 stories. The service charge is £700 but I know several people who live in similar blocks who haven't had heart-stopping bills for improvement works..

Tancred

Richard_Webster wrote: »

Perhaps that's all OP can afford?

Lenders really do need to train their branch mortgage people to ask questions like: "What floor is the flat on?" "Is it ex local authority?"

With all due respect, if the OP can't afford anything else they shouldn't be buying. Simple as that.

Common sense.

kingstreet

Richard_Webster wrote: »

Lenders really do need to train their branch mortgage people to ask questions like: "What floor is the flat on?" "Is it ex local authority?"

All they have to do is ask the questions on the application.

It devils belief sometimes. They only have to know about one application, their employer's!

wannahouse

movinghelp wrote: »

the service charge is £700 but i know several people who live in similar blocks who haven't had heart-stopping bills for improvement works..

.....yet.......

abankerbutnotafatcat

BitterAndTwisted wrote: »

I think the lender is doing you a favour. Buyers of ex-Local Authority high-rises are known to get stuck for absolutely MASSIVE service-charges and heart-stopping bills for improvement works. If I had a choice I'd look for something else.

It's something you need to bear in mind when buying an ex-LA, indeed any leasehold but you should have access to historic service charge invoices as part of conveyancing and your surveyor should opine on future building costs - my one pointed out that the flat roof would represent an on-going maintenance cost.

I bought my ex-LA maisonette, first two storeys of a four storey building, in 1997. It is in Wandsworth. There is no lift. During that time I have only had one 'major works' invoice which was c£2,000. The annual service charge has never been more than £600 which I consider to be very good value. As a massive landlord LAs have the resources to benefit from in-house professionals and economies of scale if they are well run.

I resented paying for installation of the intercom door entry system one year as my property has a direct street entrance/no communal areas so doesn't use it but that goes with the territory of a leasehold and isn't ex-LA specific. I have a friend who had to pay their pro-rata share for installation of balconies even though they lived on the ground floor so wouldn't get one and they are in a private leasehold.

adviceneeded1_2

Hi
Wondered if anyone can offer any help please, as I currently feel at a loss. We have applied for a mortgage with Nationwide, had an AIP survey has been done and we received a text to say this was satisfactory and our applciation was progessing we are currently 4 weeks into the applcication to then get a call from our broker that nationwide have now rejected our application! As we are so far down the line I feel very frustrated and confused :mad: by this can anyone offer any thoughts as to why, because we are now wondering if it is something our broker has done, or is this just how things work with nationwide?
Thanks any help is appreciated

Thrugelmir

Application being declined can be for any number of reasons. In outline your broker should of been informed why.

Having an AIP is no guarantee only a provisional unconditional status.

kingstreet

Ask your broker to investigate.

Valuation?
Income different to application?
Altered credit?
Legal issues with property from solicitor?

A case can go to decline if they decide they don't like something on your payslips and it remains on decline until they get an employer's reference.

There's little point us speculating, when the end result is always going to be "ask your broker."