Mundic Block

loveka

We are looking at the possibility of buying a house which has Mundic. The mundic survey says the building is sound and unlikely to fall down as has been there for 100 years. I have 2 issues really.

The idea is to rent it out until we retire, then live there. So it would be rented for 8- 10 years. It is very unlikely we would ever have to sell it, as when we moved our current house would be rented out, providing us with a 'pension'. Current house would rent very easily due to where it is, and would have no mortgage by then

It will be paid for by realising a pension (and paying the tax to get it all out of the plan) which is currently doing nothing.

However, we would need a buy to let mortgage. The figures add up, but the problem is the mundic. Will anyone do a BTL mortgage with mundic in the equation!?

Also, I am a bit concerned it is overpriced. It is on at 365k. Zoopla says the value is 168k! A comparable house on the same road is on at 350. However, our house has 2/3 of an acre of land and an outbuilding.I don't know how to work out if it's overpriced or not. I assume the estate agent must think this is the right value. There is nothing in the same area with the same size house with that much land.
Thanks if you can advise in any way.

AdrianC

loveka wrote: »

Also, I am a bit concerned it is overpriced. It is on at 365k. Zoopla says the value is 168k!

The Zoopla "valuation" is worth exactly what you paid for it, and not one penny more.

DREKLY

I take it this property is in Cornwall, or the South-West?
If I am correct, properties with this type of construction have been made more acceptable to loan companies recently, from what i have read.
However, the value is probably in the plot, more than the building.

I will be interested to see if you can find somewhere to get a mortgage for this...

diamond_dave

Please be VERY careful with this property. Here in Cornwall there are many properties built using mine waste as ballast and are causing serious problems. If the property is sound and no water has leaked into the walls you could be ok. But from experience I know that the blocks can become porous and soft -requiring complete rebuilding of the walls or even demolition. I understand that the mundic is graded A to D(I think) the lower the grade the easier to get a mortgage. But beware or walk away from this.

loveka

Thanks for the replies!

We are walking away with great sadness as it's a dream house for me, had everything we wanted.

But I saw a very similar house sold in November- no Mundic- for 325k. That was the deal breaker for me! It's over priced.

The Mundic survey showed no erosion and said it was unlikely in the future, but it was still graded B which is unmortgageable.

DREKLY

Well said, Diamond Dave - and here's a link explaining all about that via Cornwall Council's website,

https://www.cornwall.gov.uk/housing/private-sector-housing/a-guide-to-mundic-block/

You may notice that my avatar is a Cornish Unit bungalow, which is also constructed of china clay waste mixed with concrete for the panels, but it's still standing, with no signs of deterioration anywhere !

cajef

A bungalow near to us with mundic block sold recently, the price paid was just for the site, the buyer demolished the property and has proceeded to build a new house on the site.