Valuation refusal due to house being next to a public house.

batman1985

Hi,
We are first time buyers with three children, the property we want is a bungalow next to local pub but raised up.
The mortgage went fine till the valuation went ahead by natwest, they said the property has no resale as it's next to a pub. This sounds ridiculous to me and our mortgage advisor who is currently appealing against the valuation. Has anyone heard of this before, any help much appreciated. Thanks.

G_M

Yes.

A number of lenders have various criteria regarding lending on properties above, next to, or near certain kinds of business.

You may have to shop around for a lender who does not object to pubs next door. Your independant mortgage broker should advise on this, and if he can't then he's no good. Find another one.

davidmcn

But also bear in mind that any future lenders and buyers will be similarly deterred.

comeandgo

Do the sellers have a mortgage? It will give you an idea which company to approach.

anselld

http://www.intermediary.natwest.com/intermediary-solutions/lending-criteria.html

Doesn't explicitly state acceptable or not, but there is the catch-all statement ... "Subject to the valuer confirming saleability and suitability for mortgage purposes".

G_M

comeandgo wrote: »

Do the sellers have a mortgage? It will give you an idea which company to approach.

Not necessarily.


The lender may have approved the seller's mortgage 5 years ago, and changed their policy since then.

brewthebear

I think the message is Walk away and find something else it will be difficult to sell on in the future.

eddddy

comeandgo wrote: »

Do the sellers have a mortgage? It will give you an idea which company to approach.

G_M wrote: »

Not necessarily.


The lender may have approved the seller's mortgage 5 years ago, and changed their policy since then.

Yep.

I know a number of people who are in that position - mostly having bought flats above commercial premises.

They got mortgages some years ago with high street lenders (Halifax being one example), and now the same lenders will not offer mortgages to potential buyers.

(And their properties are now worth less as a result.)

davidmcn

G_M wrote: »

The lender may have approved the seller's mortgage 5 years ago, and changed their policy since then.

Or the pub might have appeared since their mortgage was granted.

stator

I don't normally see the point of a mortgage broker, but this is the sort of thing you need a mortgage broker for. They will know which banks to apply to in a situation like this. It's either that or phone around and ask all the banks yourself. Most of them will keep you on the phone whilst they phone through to the underwriters and ask them. So if you can't afford a mortgage broker, you can try your luck.

SmashedAvacado

dont buy it

the problem with properties like this is that you are happy, but when you come to sell, the sale will be the most stressful thing ever in your life as buyers will be put off as will their lenders.