To buy or not to buy - Wimpey No Fines

Cobra80

Hi everyone,

After weeks of waiting for the end of the buying process, my mortgage application was turned down yesterday as the search revealed the flat I'm buying is of non standard construction (Wimpey No Fines). Apparently the owner wasn't aware (previous cash buyer) and the estate agent wasn't either. Now I have a dilemma and need few words of advise please;

The property was on the market for 130,000, my offer of 133,000 was accepted as the highest. The property was valued based on belief the property is a standard construction. My mortgage adviser told me he can get me a mortgage for the house but over first two years it is going to cost me approx £1,700 more than the previous offer.

I was going to buy the property as an investment, probably sell it after 4-5 years, but now I'm not sure about potential profit and whether the whole thing is worth the risk? The are I'm buying in is a very popular one, here is not much on the market for this price, but £5,000 more would probably get me a flat which is up to date with decor but with no garden. In other parts of Bristol I'd probably get something for the money, but the area is quite important to me.

So, the question is - from an investment point of view - to buy or not to buy? Does the estate agent have responsibility of ensuring they carry out thorough checks? Can I ask for compensation of all costs incurred so far?

If I decide to go ahead with the purchase, how to approach the fact the property - in my opinion - is overpriced? I believe the first valuation of the property and offers of prospective buyers would not be as high had the true type of the construction was revealed in the ad.

What about mortgeage - ability of future prospective buyers? It is quite easy to get a mortgage now, should I worry about future change? The last thing I want to end up with is a very low cash offers due to the non standard construction....

Thanks in advance for your help!
D

clairecymru

We had no problems getting a mortgage for our recent purchase of a Wimpey no fines house although we did buy it at £10,000 under the Home report valuation. Our solicitor did warn us that only three mortgage lenders will lend against these properties and there may be less in the future and future saleability may be an issue but we do not plan on moving at anytime in the near future.