Flat above shops problems

welshjpc

Hi All,

I have made an offer for a flat above a row of shops in a quiet village. The shops include a newsagents, vet, bookmakers, dog groomers & a chinese takeaway. I have used the mortgage adviser affiliated with the selling estate agency for convenience and the hope of obtaining continuity. They recommended Halifax. Halifax who gave a decision on principle and then sent out a valuer who refused to give a valuation due to some rather pathetic reasons claiming the dog groomers is too noisy (rubbish) and the chinese vent being too close to the flat (complete lie - it's on the end of the row) but are falling back on Lloyd's bank policy of not mortgaging properties above commercial premises. Turns out it was not a halifax / lloyds valuer but someone from "Countrywide". I guess they outsource this to save money?
Anyway, mortgage adviser reckoned that NatWest WILL mortgage above commercial - we have had the decision in principle and they have requested a valuation. Turns out that they have called on Countrywide to carry out the valuation. Who have refused to even go out to the property.
What - if anything - can I do in this instance? Does anyone know of mortgage lenders who use their own internal valuation team? Otherwise if everyone just uses the same "dial-a-valuation" team I am sunk.

Please help!
welshJPC

Thrugelmir

welshjpc wrote: »

I guess they outsource this to save money?

Banks business is to take deposits and lend money. Far removed from surveying and valuing property. So yes they employ professionals to act on their behalf.

ACG

You are probably best trying a smaller lender where you can send them a google maps screenshot and have the view it before submitting an application.

Personally I cant see this going ahead with all but the minority of lenders...
Take away and bookies are 2 of big no nos when lending close to commercial (the others being pub/off licenses/launderettes).

Every lender outsources the surveying to specialists. Either countywide, eserv or connells usually.

welshjpc

Thanks for the feedback so far people.
After double checking NatWest's mortgage policy it seems that they are one of the most accomodating lenders for mortgages over shops however if countrywide won't even look at the place due to their own policies then how the heck am I meant to get a mortgage? Is there an appeal process or can I request a different valuer examine the flat?

Senior_Paper_Monitor

The individual surveyor is quite likely to do work for different groups/panels even on the same day - he/she will apply the individual lender's guidelines to each one.

There is however the 'catchall authority' of surveyor's comments - usually covering suitability and resaleability (which are more down to individual opinion than defined criteria.


While the property matches RBS/Natwest criteria:

Property Types

Properties we will consider
Providing the valuer confirms their saleability and suitability for mortgage purposes, we can lend against the following:

• No-fines concrete construction.
• Steel framed houses.
• Flats over or immediately alongside business premises.
• 100% timber construction.
• Properties containing high alumina cement.
• Properties near contaminated land.
• Freehold flats - the maximum LTV is 90% (75% for interest only) and a suitable maintenance contract must be in place.
• Agricultural restrictions - the maximum LTV will usually be 50% but each case will be assessed on its own merits.
• Properties used for business - we can only lend if the property is primarily for residential use and the work area of the property is 20% of the total property area or less.
• Leasehold properties - there must be at least 30 years left on the lease at the end of the term (we may consider less for properties in central London).
• Flats (on any level) in multi-storey type properties are usually acceptable, subject to exceptions (e.g. where the valuer identifies issues with the building and/or locality which are likely to adversely affect resale).

Properties we will not consider

• Properties with a floor area of less than 30m square.
• Properties with a plot size in excess of 4 hectares / 10 acres
• Properties listed under the Housing .......... etc etc

..... as ACG states, bookies and takeaway food establishments (indeed catering establishments of all sorts) are not popular with lenders/surveyors.

You should also be wary about buying property which may be difficult to sell in the future.

Annisele

Some properties just aren't mortgageable - meaning that the only people who can buy them are cash buyers who don't need a mortgage.

Some properties are mortgageable now, but with a very limited number of lenders who will consider them as suitable security for a mortgage. It sounds like you might be looking at one of those.

Lending criteria changes over time. You might find that when you come to sell, lending criteria have relaxed and every single lender will be happy to lend your buyer money to buy your flat. On the other hand, criteria might have tightened - and no lender will lend on the flat. That means you could only sell to a cash buyer, which would reduce the price.

All in all, unless you've got an absolutely fantastic deal I think you should walk away from this one.