Is a mortgage valuation decision final?

nigglebyleaf

Hi We are trying to buy a house that we love for 230,000 it is lush and perfect for us. We have a deposit of £170,000 and are trying to get a £70,000 mortgage from nationwide. Everything was going fine and we had our mortgage valuation and the surveyor valued it at £0 because it is next door to a chinese takeaway. We are yet to talk to our mortgage adviser as she is on holiday but were given this information and an email of the valuation report from a lady in the nationwide call centre. Does anyone know if there is any chance we will be able to still get our mortgage from Nationwide? Or if there is away to appeal these things? Seems ridiculous to us as if the property was reposessed then surely nationwide would easily be able to sell it for £70,000.
The land alone is worth that I would have thought it has a massive garden!! Anyone any experience??
thanks Kate

Thrugelmir

nigglebyleaf wrote: »

Seems ridiculous to us as if the property was reposessed then surely nationwide would easily be able to sell it for £70,000.

That's not the issue. It maybe board policy not to lend to properties adjacent to commercial premises. So don't take the decision personally.

stator

Yes sounds like you need to check with nationwide if it is indeed their policy. Some people have had success appealing valuations but I think it's quite rare.

GMS

Consider very carefully if buying this property is a good idea.

IF you find a lender for this then consider what would happen if you deceided to sell in the future. The market for properties next to commercial premises which could be viewed as undesirable is limited so you will have issues selling it.

kingstreet

I'd have expected a decent broker to take a look at the Rightmove listing for this property and check the lender would be likely to accept it, before submitting an application.

I agree with GMS on future saleability issues.

If you are intent on proceeding, ensure any future lender is aware of the issue before submitting an application.

nigglebyleaf

The policy is to consider on a case by case basis flats above commercial premises according to their intermediary website.This is a flat next door.
Why this wasn't asked about during our 4 HOUR interview and saved everyones time I do not know. I never thought it would be an issue, until I started looking into it now.

Dave_Ham

Unfortunately this is the issue when going into a branch where they have one set of criteria and one lender to (sell)

The advisor could be targeted on applications and additionally not much holiday backup for support + 4 hours - ouch

There will almost certainly be a solution with another lender but echo above re future value

Good luck

tvfreek

You're probably right Dave but from where I'm sitting why on earth didn't the adviser check the security was suitable?

Senior_Paper_Monitor

Generally the tendency is to limit the questions to those in the application form which doesn't go much beyond the flat or house, detatched or terraced, which floor is the flat etc.

Have 'rescued' many an application that has been processed all the way to valuation by a bank/building society for it to be rejected as unsuitable.


I fully agree with Kingstreet - agents details/streetview/multimap are all part of the checking that a good broker will do (but don't expect it from a bank).


I don't think the OP checked the Nationwide criteria properly ...

In addition to the usual construction and marketability criteria, the acceptability of a flat in the same block as commercial properties will depend on:

• Nearby commercial activities. If any commercial activities in the block are likely to cause a nuisance by virtue of noise, smell or unsocial hours, we may not be prepared to lend on the flat.

.... and while I have little doubt it can financed (but not with Nationwide - I would see no chance of their initial decision being overturned) please heed what several contributors has said about resale.

kingstreet

One of the first things I do in the period between DIP and App is the property bit. I use Rightmove to actually see the image of the property and check the construction method.

I look at sold prices to see when it last changed hands and for how much and to establish build year and tenure (where possible) and to see if there's anything else to check, such as lease term, ground rent & service charge etc.

It's just another one of those things that makes use of a thorough broker worthwhile.

Added value.

nigglebyleaf

I know I can't believe they didn't even ask. I almost showed the women a picture of the house for fun as we were there so long and she would have seen the takeaway but didn't get round it in the end.
We never saw it as a problem, but maybe it is. I don't think it would be too smelly or noisy but maybe I am niave. Never thought it would make a difficulty in selling as we just loved the house. It has so many benefits ie in town but HUGE garden, parking, study, Grade 11 listed beautiful house. AAAH now we don't know whether to just leave it but we have fallen in love with it, what a dilemma!