Lenders valuer refuses mortgage because of "structural movement"

grecianmax87

Hello

We're buying (or attempting to!) our first house. Everything has gone smooth ugly up until this point , where our mortgage advisor has had word back from our lender. They say the following:

"We have received the valuation back on the above case. Based on the valuer’s comments, the case has been declined. The valuer has confirmed that evidence of structural movement was noted in the form of cracking to walls and distortion of the chimney breast in the roof void. This falls outside of our lending policy.

In order to appeal this, the valuer requires a structural engineers report. Please be aware that these can be costly and there is no guarantee we will proceed with the property after the report has been received."

I'm a bit unsure about what to do next. Obviously he values survey isn't particularly in depth and tbf I don't remember seeing a crack in the wall, but fair enough. I was thinking we could I've it another go through a different lender first? I'm not really comfortable paying £600 odd for a survey when we don't have a mortgage in place....

They're apparently sending over their survey from when they bought it in 2014. Before that it was occupied for 20 odd years. It's a Victorian terrace in good condition otherwise (by my untrained eye anyway!)

Cheers

Max

Doozergirl

If you don't know someone that knows buildings to take a quick look before paying someone, you/the vendor can pay a structural engineer to just come and look. If they think there is a problem then there is no need for a full report. It would be cheaper that way.

Perhaps a bit of detail would be helpful to you. Valuations never give you any detail at all and their look is a cursory glance over.

Cakeguts

I think it is going to depend on how much you want this house or if you are prepared to find something else. If you want this house I think you are going to want to know if there is structural movement aren't you? So in that case the £600 for a structural survey or structural engineer's report is going to be good value especially when you consider how much you are spending and how much the repair might cost?

kinger101

The previous survey is of limited use. For one, you have no comeback against that surveyor if it contains errors. Secondly, a building survey wouldn't give categorical assurances that there isn't ongoing structural movement. That requires a structural engineers report, which in some instances, requires measurements over several weeks.

As a first step, I'd see if the bank will allow you to approach their surveyor/valuer. Sometimes what they've written is overly cautious or doesn't use the right words. I had to get mine to use the magic words "historic, longstanding and non-progressive" for my insurance.

If is does transpire the surveyor thinks further investigation is required, it would be foolhardy to attempt to bypass this with another lender. In any event, they often use the same firm of surveyors.

Thrugelmir

grecianmax87 wrote: »

I'm not really comfortable paying £600 odd for a survey when we don't have a mortgage in place....

A lender isn't going to lend you thousands of pounds if there's any question of doubt!

grecianmax87

Thanks guys. This is the first time we've done this so I understand that I may come across as naive - we're learning as we go...

Since I posted, the buyer has said they're gettting a structural survey next week so will be interesting to see that. I'm right in saying we can't use the survey aren't I? Interestingly it transpires they have a mortgage with the same lender as us. So they managed to get a mortgage on the same place with the same lender 2.5 years ago. So it's either a new issue or has happened since they bought.

grecianmax87

Sorry I mean it was either not noticed last time or is a new issue

Thrugelmir

grecianmax87 wrote: »

Since I posted, the buyer has said they're gettting a structural survey next week so will be interesting to see that. I'm right in saying we can't use the survey aren't I? Interestingly it transpires they have a mortgage with the same lender as us. So they managed to get a mortgage on the same place with the same lender 2.5 years ago. So it's either a new issue or has happened since they bought.

Ball is firmly in the vendors court. Pointless speculating. As all you have is their word. In the meantime I'd continue to look elsewhere.

kinger101

The bank as asking for a structural engineers report. A building survey commissioned by the current owner isn't going to resolve anything.

grecianmax87

My terminology is off - the owners are getting a full structural report. Not a survey. Whether this is of any use to us I don't know!

eddddy

grecianmax87 wrote: »

My terminology is off - the owners are getting a full structural report. Not a survey. Whether this is of any use to us I don't know!

It's of use to you, because it should tell you whether or not there really is structural movement.

If it says there is structural movement. you won't get a mortgage, and you probably wouldn't want to buy it anyway,

If it says there isn't structural movement, you could ask the same structural engineer (or a different structural engineer) to prepare a report for your lender. But check this is ok with your lender before proceeding.