Nationwide valuation of zero

lazer-zxr

Hello forumites. Some advice or opinions required please.
Got mortgage in principle from nationwide.
Made offer on house of our dreams. Offer accepted of 272k.
House still has 70s interior decoration including paneled notty pine everywhere, needs rewire and updated heating.
I've got quotes in and tradesman friends lined up.
Nation widea valuation returned as zero value as house needs work from various trades people, and therefore they won't lend on this property. Nothing to do with affordability etc .... just the current state of the house. To be honest it's very dated but liveable. We have the have the means and plans to renovate to a high standard.

What do I do? Is this where I need to go down the buildstore route? It seems I'm unable to get much info out of NWide regarding the detail of the valuation.

juniordoc

What LTV have you requested on your mortgage? Could it be that they have stricter lending criteria for properties in poor repair e.g. want 40% deposit to mitigate risk of negative equity?

lazer-zxr

juniordoc wrote: »

What LTV have you requested on your mortgage? Could it be that they have stricter lending criteria for properties in poor repair e.g. want 40% deposit to mitigate risk of negative equity?

65% actual Ltv against lending criteria of 75%. So that's OK.

It's purely the valuation report which effectively days don't lend on the house. I've had it structurally surveyed etc separately.... that was all ok.

eddddy

Are you sure you've got the right reason for the zero valuation?

If they've valued it at zero, it's normally because it doesn't match their lending criteria.

For example, it's non-standard construction, it's got two kitchens, it's next to a pub etc.

It might be worth talking to the lender/valuer again to double-check the reasons.

G_M

or it's got NO kitchem.....

theartfullodger

They don't want to lend on it: Their decision, unlikely to change.

So, options...
- walk away, find somewhere else..
- Find another lender
- (Not flippant, you may have options..) buy for cash - probably lower price - then mortgage later when everything sorted.

lazer-zxr

Thanks for the replies. I'll feedback if I find anything out.

It does have usable kitchen and bathrooms., and I can't buy for cash unfortunately.

moneyistooshorttomention

I'd be astonished too at this.

Try another couple of lenders and see what they say.

davidmcn

There must be something specific to have triggered the zero value - are there any significant repairs needing done? Merely needing modernised shouldn't make it unmortgageable.

AdrianC

lazer-zxr wrote: »

Nation widea valuation returned as zero value as house needs work from various trades people, and therefore they won't lend on this property. Nothing to do with affordability etc .... just the current state of the house.

I'm also sceptical that they're saying "We won't lend because it's a bit dated". What is the EXACT wording in the valuation?

Either way, if NW won't lend, then your answer is simple. Use a different lender who will.

lazer-zxr

I've just been on the phone to NW and didn't get a lot from them again. They said the valuer would've totted up the work required to update the house and deemed it too much. No other details.

Are NW notoriously picky? Which lenders are less so?