Mortgage On Property That Needs Extension Rebuilding

CityTiger

We are in the process of purchasing a property with an extension that does not have building regulations approval. We are awaiting a structural report to confirm if the building is adequate.

If it turns out it is not (which is quite possible), we would want to knock the extension down and build a conservatory in it's place to overcome the problem.

The problem is we are purchasing the property with a mortgage and the lender also require buildings insurance to be in place.

Does anyone know if it would still be possible for us to purchase the property and carry out the work or would it become a catch-22 situation where the mortgage lender won't give us the money (or insurance wont cover us) until the work has been done and signed off but we cant do the work until we own the house?

Thrugelmir

What matters is that the property provides adequate security for the loan to be advanced. You'll need lenders approval subsequently to make alterations. Though this shouldn't be an issue.

CityTiger

Thrugelmir wrote: »

What matters is that the property provides adequate security for the loan to be advanced. You'll need lenders approval subsequently to make alterations. Though this shouldn't be an issue.

Ok so if the structural report says that the property does not provide adequate security, does that mean we would struggle with the mortgage even if we would be prepared to pay to correct it once we have completed the purchase?