Mortgages and High Alumina Cement Towers

Camberwell

I would very much like to know if there are any precedents for mortgages on ex council properties in high alumina cement constructed tower blocks.

I would only need a relatively small loan (maximum 50,000) and I am reasonably flexible regarding the repayment term.

Are there any lenders who deal with this kind of property?

Thanks!

ethank

I think it will be very difficult to get a mortgage on the property.

amnblog

Find out how your neighbours are mortgaged with.

Camberwell

Hi amnblog,

Thanks for your message. I don't currently live in such a property, so I have no neighbors to ask. I am a first time buyer looking to get a mortgage on one. Preferably a mortgage in principal on ex council flats in buildings greater than 5 floors.

amnblog

You will be very fortunate to find a lender for this.

The last one we looked at in Lambeth came up blank.

Each building is considered on its own merit.

A mortgage broker located near the building may have done cases there before.

Camberwell

Thanks very much for this.

Mokka

There are v. few lenders who will lend on high rise buildings, and of these all loans are subject to valuation. In other words you can end up paying for valuation and being turned down for a mortgage.
Your chances depend on many factors, most importantly how easy for your bank would be to re-sell your property in case of repossession. LTV also matters a lot.
The best indication of saleability is to check how many flats in the block are privately owned and how desirable they are (both to rent and to sell). You can get some idea of this by doing a search for the block on line.
From my research there are currently 4 potential lenders: HSBC, Santander, TSB (apparently their new lending criteria don't exclude high rise any more) and Virgin Money who are lending up to 10 storeys. Also Halifax don't seem to exclude high rise in their lending criteria, but a broker told me not to bother with them. A broker also told me there is one more 'specialised lender'- only accessible through them.
The problem with asking a broker for advice is that they won't be able to access HSBC and TSB mortgages.
Your best bet is to get a mortgage advisor at your chosen lender's to speak to the bank's underwriters- they can look up the block and give you a rough idea.
Also these types of properties are seen as higher risk so the lenders will be more demanding (good income, good credit record, low LTV etc).

Camberwell

Very interesting and useful Mokka. Thanks.