Flat "too small" to lend against - Leeds BS

tissyblue

I went to Leeds BS looking to re-mortgage a flat I have leased out for 10 years as their buy to let rates looked very competitive. My application was approved in principle, I have an A1 credit score and I'm well within the LTV rates (borrowing 65% of valuation). Leeds came back today and told me that they wouldn't be proceeding with the mortgage as the flat "isn't big enough" to meet their lending criteria.

Its a large one bedroom flat they calculate at 55 sq m and they say the minimum requirement is 60 sq m.

Has anyone heard of this criteria before - seems absolute rubbish to me - and does anyone know if any other lenders have the same rule (before I waste another few weeks of my life)?
Thanks

Thrugelmir

tissyblue wrote: »

Has anyone heard of this criteria before - seems absolute rubbish to me -

Lenders can set any criteria they wish when advancing money.

ACG

Lenders do have this criteria, as for what every lenders criteria is im not sure, it may be different. You would have to speak to the lenders before submitting an application.

_Andy_

"Has anyone heard of this criteria before - seems absolute rubbish to me "

- Yes
- Doesn't matter

kingstreet

From Leeds criteria;-

Modern high quality conversions (flats, maisonettes and studio flats) with a minimum floor area of 60sq metres are acceptable.

Prothet_of_Doom

Did they include the floor area of the stairs?

Would it have been mortage fraud to write "Approximately 63 sq meters" ?

(Which it technically is if I were to measure it.....with a broken 12 inch ruler)

Dave_the_Ginger_Cat

Prothet_of_Doom wrote: »

Would it have been mortage fraud to write "Approximately 63 sq meters" ?

Yes, any activity which is designed to deceive is clear fraud

Prothet_of_Doom wrote: »

(Which it technically is if I were to measure it.....with a broken 12 inch ruler)

I think they would only look at the surveyor's view, not the applicant

tissyblue

Thanks for the replies.

I found the original valuation from 1996 when the Halifax measured the flat at 65 sq m. So its obviously shrunk over the years.
I have challenged Leeds and they "are reviewing" after I told them I was with the surveyor last week and he didn't measure any part of the flat.

Fingers crossed.

ValHaller

tissyblue wrote: »

I found the original valuation from 1996 when the Halifax measured the flat at 65 sq m. So its obviously shrunk over the years.

I have challenged Leeds and they "are reviewing" after I told them I was with the surveyor last week and he didn't measure any part of the flat.

There are various ways of assessing floor area. May be your surveyor added up areas from the EA details. Worth doing your own check. Perhaps the 1996 valuation was based on the external envelope.