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

jonboy321

Your bank isn't trying to be difficult, they are trying to protect their investment-as you should do with yours.
I would follow their lead, see that the property may lack resale appeal and look for something else.
It amazes me how many people seem to this that banks refusing to lend on a property is a bad thing- they are still willing to lend to YOU, just not for that. They are being prudent.

hazyjo

You may find someone to lend on it now, doesn't mean they will at all in the future. This thread will give you lots of insight as to why not to buy...


https://forums.moneysavingexpert.com/discussion/5606574/would-you-buy-house-next-to-pub

Crashy_Time

eddddy wrote: »

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.)

So in a city like say London, or any city that would include a LOT of people? What is the lender`s reasoning for this?

ceh209

Wow. I bought next door to a pub last year, I guess I'm lucky it didn't even crop up as an issue (semi-rural location, quiet country pub where everyone has to drive to, large beer garden separating the pub and the house- so even if the lender did consider it, maybe that's different to you - is it a busy city pub where drunks are wandering the streets? :beer:)

Lender is Coventry Building Society btw (not a recommendation, just telling you they didn't even mention it as an issue to us). The valuer did visit the property so would have definitely seen the pub.

hazyjo

Crashy_Time wrote: »

So in a city like say London, or any city that would include a LOT of people? What is the lender`s reasoning for this?

Health and safety some of the time including fire/chemical risks, shared entrances, desirability other times. Having say an 'artisan deli' or something might be desirable - fast forward a year and it's an Indian takeaway, it can devalue the property. Risk to the lender as much as the owner.


Things like dry cleaners or even bakers below can also make it extremely hard to mortgage.

hazyjo

ceh209 wrote: »

Wow. I bought next door to a pub last year, I guess I'm lucky it didn't even crop up as an issue (semi-rural location, quiet country pub where everyone has to drive to, large beer garden separating the pub and the house- so even if the lender did consider it, maybe that's different to you - is it a busy city pub where drunks are wandering the streets? :beer:)

Lender is Coventry Building Society btw (not a recommendation, just telling you they didn't even mention it as an issue to us). The valuer did visit the property so would have definitely seen the pub.

What was the LTV? If you had a large deposit, it would have been seen as less of a risk to the lender with you taking the hit rather than them if it was say turned into a drive-thru!

davidmcn

hazyjo wrote: »

Health a safety some of the time including fire/chemical risks, shared entrances, desirability other times. Having say an 'artisan deli' or something might be desirable - fast forward a year and it's an Indian takeaway, it can devalue the property. Risk to the lender as much as the owner.

Things like dry cleaners or even bakers below can also make it extremely hard to mortgage.

Basically, lenders don't like them because buyers don't like them. Also commercial occupiers can be reluctant to contribute to the cost of far-away communal items like roofs.

I think it will depend to an extent on the local market e.g. in urban Scotland it's pretty standard to have tenements along High Streets with 3/4 floors of flats above commercial premises, so if you excluded all of those it could be a fair chunk of the market, and in most cases they're eminently sellable.

davidmcn

ceh209 wrote: »

I bought next door to a pub last year, I guess I'm lucky it didn't even crop up as an issue (semi-rural location, quiet country pub where everyone has to drive to, large beer garden separating the pub and the house

That could be even worse - I'd prefer the drinkers to be in a nicely soundproofed internal space! As with other commercial outlets it can be difficult to predict future changes - the quiet pub might suddenly decide to introduce live music, karaoke or late-night functions, or the beer garden could be a handy place to build an extension. And even the quietest places are going to have smokers congregating on the pavement etc.

zagubov

We bought a house facing an ancient pub and no issues.
Nationwide and, later, FD, were fine about it.

Cakeguts

Is this bungalow cheap for what it is because everyone knows that it will be very difficult to sell because of its position?


If you do buy it you won't want to spend any money on any improvements because you won't get any of it back as you will have to sell it cheaply to sell it at all.



It is always going to be a cheap property. It will never be a property that you can make money on by doing it up.