Survey said 'un-mortgagable'

HalfPint

It's definitely not a prefab. I'm pretty sure it's brick built but there is concrete in the stairwell.

I'm trying not to run ahead when I have no real idea if there is an issue or not but yes, I have considered that I may end up being a reluctant landlord.

princeofpounds

Keep marketing it. You might find the next lender has zero issues, or at least tells you about it.

PS it's not a freehold flat is it?

kingstreet

Any idea which lender/survey firm was involved?

AlexMac

Agree the advice above- to try again. If the lease is well over 80 years, it's not that, so it might be that the valuer knew that lender's policies ... which differ between lenders. For example I was thinking of buying a Georgian house with an original flat roof... but my (mainstream high street) lender said they didn't like flat roofs... whereas another didn't object. I've heard that some lenders don't like system built (concrete panel) construction but that doesn't seem to be your issue...

So keep hoping

HalfPint

No, it's a leasehold flat. I don't know the survey firm but I think the lender was Paragon (though not 100% sure).

HP x

kingstreet

HalfPint wrote: »

No, it's a leasehold flat. I don't know the survey firm but I think the lender was Paragon (though not 100% sure).

HP x

Paragon don't lend on ex-local authority flats or maisonettes;-

Property exclusions

Property is unacceptable if it is:

- an ex-local authority flat or maisonette

- non-traditional construction such as concrete or timber or where existing or possible structural defects are apparent

- a shared ownership property (currently or previously)

- a converted flat where the applicant occupies a property in the same building

- a freehold flat or maisonette in England and Wales

- designated as defective under any housing legislation

- subject to agricultural or other planning restrictions (see part commercial property above)

- subject to notice of mineral extraction, contaminated land or previous mining subsidence and landfill

- being purchased under the right to buy scheme

- built within the last 10 years without an NHBC certificate or other guarantee acceptable to us

- subject to a pre-emption clause

- a property with solar panels installed where they are subject to a lease agreement

- located within either 10 metres of an electrical sub-station or 100 metres of an overhead high voltage cable or communication mast

See page 6;-

http://www.paragon-mortgages.co.uk/Files/PMLGeneric/Literature/Products/Lending%20Guidelines%20and%20Submission%20Requirements.pdf

I assume this was a BTL purchase then?

HalfPint

Thanks Kingstreet, I guess the line in bold is the reason

Yes, it was a BTL. More than likely anyone who buys my flat will BTL.

That has at least helped put my mind at rest that there isn't something drastically wrong with it. Looks more like their broker didn't do his homework properly.

HP x

princeofpounds

Nice work kingstreet

Snakey

Then it may not be the end of the deal - is the buyer aware that all they need to do is approach another lender who is prepared to lend on ex-council? It's not quite the same as discovering the whole thing is carved from a block of asbestos.

kingstreet

Some brokers just don't ask their clients relevant questions.

The sad thing is, I bet the broker was too embarrassed to tell the client the true reason for the decline, so the client has gone away thinking he can't purchase that property.

Pathetic, really.