Valuation Came Back as £0

AdrianC

toddler9 wrote: »

My confusion is the house I currently live in (also mortgaged by Natwest) had no central heating when I moved in and also the electrics were running off a single fuse (all now replaced) but that was no issue!

<shrug> So the environment in which they were lending, and the standards by which they judge their willingness to lend, have changed over the years.

toddler9

amateur_house wrote: »

I had a £0 valuation about 3 weeks ago.

The surveyor said he couldn't value it until various surveys were done and estimates of the costs of work needed. I've just had those and sent them to the lender. On the last page of my valuation it said the house would be valued at the amount I had offered when the essential work had been carried out.

From what I understand if they are happy with the results of the reports they will keep a retention of the mortgage back until the work is completed. Or worst case scenario they won't lend at all. I am still waiting to hear their decision.

Do you have the email address of the valuer? I emailed for clarification of what was needed. The lender eventually sent me a copy of the valuation along with a letter telling me what was needed, but this arrived after the reports had been done.

Thank you. I am hoping this is what happens for us too. I have the phone number for the valuer but they wont speak to me only the bank. The estate agent does know the valuer though and has tried to speak to him to gain some clarity

It is all rather strange since the house is not uninhabitable as others have suggested, it needs some works which I am willing and able to pay for. 18 months ago we bought a house in a worse state in terms of heating and electrics but that was fine for a full mortgage!

liberty_lily

AdrianC wrote: »

Again, it's simple - they don't want to lend on a property that has a massive bill looming, because it'll make it unsaleable if they repossess. This is the lender's only concern, at the end of the day.

Thanks.

I get that, it's just neither my OH or I had come across a lender being so specific about the amount the works should cost. There is nothing I can find online about this.

The house we're in the process of buying is priced to reflect the current condition, which - like toddler9's - is just a little dated, perectly habitable with 1980s kitchen and bathroom, recent heating system but older electrics (consumer unit about 15 years old?) and dated decoration.

It's a large 200 year old house on a large plot that fully renovated would sell for in the region of £150k more than the current sale price - according to recent sold figures.

For the price we've agreed, you can get a fully renovated - or much newer (1980s) - house that is less than half the size and has a garden a tenth of the size We are not interested in those.

We have the money set aside to do the most essential works (about £50k) and are putting down a relatively large deposit.

Toddler, I just don't get it either. I guess a lot more backside covering goes on these days! Hope you get favourable news soon!

[Deleted User]

I wonder if its worth going to a broker who can find you a lender who would be more willing to provide funds in these circumstances.

AdrianC

liberty_lily wrote: »

I get that, it's just neither my OH or I had come across a lender being so specific about the amount the works should cost. There is nothing I can find online about this.

Because it's just that lender's preference in your specific circumstances. If you don't meet it, or don't like it, the lender won't lose much sleep - just borrow from somebody else.

Other lenders, other properties - probably different.

Thrugelmir

toddler9 wrote: »

I have the phone number for the valuer but they wont speak to me only the bank.

The bank is the surveyors client. The valution being prepared in accordance with the lenders instructions and criteria. As it's the banks money that is being used to purchase the property it will be on the bank's terms.

It's a large 200 year old house on a large plot that fully renovated would sell for in the region of £150k more than the current sale price - according to recent sold figures.

Which suggests that a considerable amount of work is indeed require. Nor is that a factor in the lender decidng whether to lend or not. The condition of the property now is the overriding factor.

Flutterbat17

Sounds like the lender is the issue not the house. Think they would run a mile if they saw the house we are buying! Lol!
Nationwide have been fantastic with us so far.

toddler9

Well the plot thickens. My estate agent managed to speak to the surveyor who did the valuation report. He says that NatWest has recently changed their lending guidelines that any house which requires remedial work has a value of £0 automatically

I have spent hours on the phone to NatWest this afternoon to try and clarify this. The reason being is that I made it clear in the application on the phone that circa £50,000 was being used to renovate the property. They asked me for a breakdown where I specified electrics and boiler would be a priority. At no point did the advisor then say “oh – we don’t lend on any property which needs immediate works doing” so then I paid £250 to be told “we don’t lend on property which needs immediate work doing”

NatWest mortgage centre have confirmed that I would need to get the report on the electrics and heating done and then the works completed before they will progress on the application. Since I don’t own the house that leaves me in a corner- I can’t do the works on a house I don’t own and my vendors aren’t able to do them either as they are selling on behalf of a family member under power of attorney.

I have now raised a complaint to the NatWest to get my valuation fee refunded, which they have agreed to progress. I completely respect their decision not to lend on properties which need X Y Z work, but they have a duty of care to tell me that first. I could have just opened an application with someone else

AdrianC

toddler9 wrote: »

I have spent hours on the phone to NatWest this afternoon to try and clarify this. The reason being is that I made it clear in the application on the phone that circa £50,000 was being used to renovate the property. They asked me for a breakdown where I specified electrics and boiler would be a priority. At no point did the advisor then say “oh – we don’t lend on any property which needs immediate works doing” so then I paid £250 to be told “we don’t lend on property which needs immediate work doing”

NatWest mortgage centre have confirmed that I would need to get the report on the electrics and heating done and then the works completed before they will progress on the application.

Your idea of "needs" may, of course, be different to theirs.

You may think it "needs" upgrading for reasons they don't regard as a problem - insufficient sockets, you want a better shower/underfloor heating etc.

Since I don’t own the house that leaves me in a corner- I can’t do the works on a house I don’t own and my vendors aren’t able to do them either as they are selling on behalf of a family member under power of attorney.

Both of those are, of course, eminently possible. Whether they're wise is a different question.

AlexMac

Natwest still playing up eh? Find another lender. It's almost 20 years ago that NatWest agreed in principle to lend me £60k , then, days before exchange and simultaneous completion (it was an auction property), qaulified that with a 100% retention pending structural, roof, damp/timber and tree surveys after their surveyor switched on his RAAs Cover mode...
I was incensed; I'd had warm noised throughout, had told 'em it was a do-upper wreck (albeit with operational kitchen and bathroom) and had banked with 'em for over 30 years!

But as I'd smelt a rat a couple of weeks prior, I had simultaneously checked out the friendly people at the Halifax... who came good at the last minute, saving my bacon and my aution (28-day-completion-requirement )deposit (and my marriage?!)

Shop around