Mortgage pulled day before exchange ...mine entry !

*FTBer_*

We have a mortgage offer from the Halifax , all was going well and should have exchanged contracts on friday.

Phone call from solicitors on Tuesday to say offer withdrawn because there is a mine entry within 20 metres of the property. We have lived here for 6 years and are buying from our landlord who apparently didn't know about the mine entry . We have paid for a more in depth search from the coal board but the valuer is still saying they can't recommend halifax lend on the property because of future saleability issues.

Has anyone had this issue and any advice on what else we can do ?

The house currently has a mortgage on it as do all the surrounding properties, we live in what was a mining town so there are mine shafts near most of the properties in the town

Thanks in advance

kidmugsy

What rotten luck. There but for the Grace of God .....

This may sound unlikely, but would the landlord be prepared to lend to you on mortgage? He would at least get to pocket the deposit you'd pay, and then he'd have a guaranteed income, with the house returning to him if ever you defaulted. Perhaps it wouldn't appeal to him because it's not different enough from letting, but no harm in asking.

kingstreet

Valuation and saleability aren't normally affected unless the shaft/entry/adit is within 5m.

If this is a very high LTV case, 95% perhaps, you may struggle at 5m to 20m.

Did you go direct to lender?

If so, talk to an independent broker. If you already have one, they should be working on this for you.

*FTBer_*

It says it's "within or within 20m of the boundary "
We went direct ,Consesionary mortgage 10% from land lord and our 5% .
Can we use a broker at this stage ?

Thanks

davidmcn

*FTBer_* wrote: »

It says it's "within or within 20m of the boundary "

Do you have a copy of the Coal Authority report? Normally they mark the shaft on a plan, so you should be able to see how close it is.

If the interpretive report is reassuring (and you're not actually on top of the shaft) then I would have thought it ok.

*FTBer_*

The interpretive report says it's in next doors garden but should it fail we would be in the area affected but that the coal board would pay any costs .
The valuer says it is a risk and would affect future saleability

We are at a loss at what to do next , we are going to speak to a broker tomorrow but not sure if we can do that at this stage ?

anotheruser

I don't understand why they care about future saleability as for all they know, you may never sell.

stalkah

anotheruser wrote: »

I don't understand why they care about future saleability as for all they know, you may never sell.

I would imagine it's to protect their interest. If the OP was to fail to pay the mortgage and the mortgage company repossessed the house, they'd want to get the most from the property.

PeacefulWaters

anotheruser wrote: »

I don't understand why they care about future saleability as for all they know, you may never sell.

The first rule of mortgage underwriting is "can we flog it if we have to repossess it".

*FTBer_*

I rang a broker who seems to think there is no way forward with the Halifax but say we could apply elsewhere . My problem is we have already paid money out only to be told no from the Halifax, although the offer is still there if we want to look for another house .
We have lived here for 6 years and it is our family home so I have been doing a bit of research myself.
There is something on the council of mortgage lenders website that says the coal authority are liable and that any risk is minimal . We are thinking of emailing the Halifax and colleys the valuer ( we have had direct contact with them so have an email address ) as a last ditch attempt to change their minds. The shaft is in next doors garden and that has a mortgage as well as the house we are trying to buy .

The landlord has today said he would be willing to reduce the price if that would help.
Any thoughts ?
Thanks

amnblog

Perhaps Halifax are assisting you by stopping you buying a property which may later prove to be difficult to sell on?