Classification of a house/barn being uninhabitable?

james35_2

Hi

I'm potentially going to buy an old stone barn and convert it into a home.

I'm going to see an IFA tomorrow but just wondered how banks classify the term uninhabitable with regards to a mortgage.

The barn in question is grade II listed which has approved planning permission for conversion.

The barn has electricity and a repaired slate roof over the main living area area.

Water is not connected but will at some stage have it's own private supply. Also it is not secure i.e. lockable doors and windows.

Does this make the barn inhabitable in terms of occurring a mortgage in the eyes of the banks?

Many thanks
James

GMS

No running water and non water tight would render it uninhabitable.
You may need to arrange bridging finance to get the works done prior to refinancing

james35_2

Hi thank you for your reply.

Does this mean I have to carry out some repairs by a separate loan before the mortgage? Sorry I'm making no sense - a little confused...

Thrugelmir

james35 wrote: »

Does this mean I have to carry out some repairs by a separate loan before the mortgage? Sorry I'm making no sense - a little confused...

Habitable - Suitable to live in.

So watertight roof, an inside bathroom, basic water and power supplies and a usable kitchen so you can live in it while any works are carried out.

GMS

james35 wrote: »

Hi thank you for your reply.

Does this mean I have to carry out some repairs by a separate loan before the mortgage? Sorry I'm making no sense - a little confused...

The lender would almost certainly impose a full retention meaning they would not release funds until required works were completed.

What is the purchase price? How much deposit do you have?

james35_2

Asking price £310,000. I have savings/shares up to approx £110,000 but would prefer to pay about 20%. Also equity in current property about £40k (current property value ~£180,000) - ideally I would like to keep this property and let it out. All sounds rosy but I have a default on my credit history - settled Jan 12.

Thanks again James

holly_hobby

Traditional residential mge requires a fully habital unit - functioning bathroom with sanitary ware, kitchen, weather proof etc.

You are really looking at self build and renovation lenders - whom will release monies in stages at each stage of completion (as verified by their surveyor), along with planning permission I am assuming this will also have its own right of way and independent utility services (ie access is not via anyone elses property, with utilities not sparred off a main house etc).

Your IFA may have some experience, or may not, there a few high st lenders still in the market, or you may want to have a look at buildstore - whom specalise in sourcing such finance ... http://www.buildstore.co.uk/ and may cut to the chase quicker than an mge broker unfamiliar with this type of business.

The additional issues you have are the grade II listed status, which can complicate sign off/acceptance and cost of materials used/changes to extgerior etc ..... along with your default .. how much ? why (is it disputed) ? satisfied or not ? ....

Not an easy enquiry for whomever gets it..

Hope this helps

Holly x

james35_2

Hi Holly, yes the property has its own private access and independent utilities with full planning permission granted. Thank you I've been doing my homework. I've been checking out buildstore.co.uk and made an inquiry with Ecology BS too.

Indeed my default could be my achillies.. it was for just over £10k. The account is now satisfied, paid off by myself in Jan/12.

Thanks again, James

amnblog

Unless you are a donkey an unconverted barn is not habitable.

Once again Holly is correct and a specialised mortgage if required as this is a conversion project.

The default is likely to kill lending options for you on this James.

Don't spend any money on this purchase until you have investigated the financing.

holly_hobby

Absolutely .... as Amnblog states please don't spend (or agree to part with) any pennies until you have at least a prelim. agreement from an UW referral via your broker.

So what you may want to do, along with details of your default etc, is take the property marketing spec's and plannning permissions to your first broker meeting - I would expect them in the first place to obtain a prelim. UW placement (ie have a UW having taken a look at both the dwelling specs, LTV, status and crebit blip to give a tacit yes .....) however please take note that even with a prelim acceptance, it may still be declined upon full application, if the reced data doesn't match what was given during the prelim consultation, and/or where the surveyor on inspection may feel uneasy re the conversion and/or re-sale potential and the exercise as a whole.

Anyhoo, this is all a job for your broker, take it to the bridge and let us know how you got on ...

Best of luck

Holly x

HARSA

but what about a bungalow that has one of it's bedroom ceiling down due to roof leakage. The damage is only on one corner of the bedroom.

Also a hole in one of the bedroom floorboard and another one in the conservatory?

Thanks in advance