Is a mortgage valuation decision final?

Thrugelmir

nigglebyleaf wrote: »

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.

You've answered your own question in the statement above. Until a formal application is made and the property inspected. There's nothing to base a decision on. The lender is not going to incur cost i.e. surveyors fees on a speculative basis of obtaining business. The cost is at your risk.

nigglebyleaf

Thing is house is not a flat it is a 3 bed house adjoining a takeaway. But you re right I didn't view the criteria before we applied. We are totally green. First time buyers but with an inherited property to sell.

amnblog

Your mortgage broker is an idiot.

Anyone with half a years experience would know that lender's do not like a property attached to a takeaway.

This property should have been discussed with the lender/valuer before application.

You need to go back to the drawing board here with a decent broker and don't be surprised if the only options available to you are ones you don't like.

kingstreet

amnblog wrote: »

Your mortgage broker is an idiot

It appears it was a branch-based lender employee, not a broker, so the lack of pre-planning and attention to detail was pretty much a given.

pc1271

What's the lender's problem with a takeaway? It's not like it's a lead works pumping toxins into the fabric of the house, or some other heavy industry.

kingstreet

It will reduce the number of potential buyers in the event of repossession (some people don't want to live next to a pub, takeaway etc) and also sees insurability affected.

nigglebyleaf

The stupid thing is though, surely they only need to sell it for £70,000 if necessary to regain their money and that is if they needed to repossess before we made any payments. I think it is dead stupid personally.

Senior_Paper_Monitor

The whole process for mass lenders is based on the least risk massed processing model - a property next to a fastfood outlet does not comply.


Their objective (business model) is not to have any need for a 'repossessions department' and its overhead - that may not be achievable, but it is the objective.




As I said above - it can be financed .... but I'm not sure you should. If you still wish to proceed ('home for life' etc - or a passion for Chinese takeaway [what do you do if it becomes a 'kebab joint' ?]):


1) Drive a very hard bargain (to reflect lack of onward saleability - of which you have proof)


2) Get a proper broker to handle the process.

Thrugelmir

nigglebyleaf wrote: »

The stupid thing is though, surely they only need to sell it for £70,000 if necessary to regain their money and that is if they needed to repossess before we made any payments. I think it is dead stupid personally.

Lenders approach this issue from a totally different perspective. Repossession is what lenders systems are geared to nullify the risk of at the outset.

nigglebyleaf

But I can't see why being by a takeaway would increase the risk of us defaulting on our mortgage repayments?. I thought it was declined because it was poor security, my argument is that the bank would easily recoup their money as anyone would jump on the chance of buying this property as it is really nice! with or without the takeaway.....We never even thought it would be a problem living next door to a takeaway, can't imagine it is that noisy but maybe I am wrong and if we moved there we would hate it........Can't see a nicer house though and really want to move now we have an offer.