House classed as defective what to do

davidmcn

splreece said:

TadleyBaggie said:

Define "defective"...

 is there recourse against the surveyor?

Not if you didn't get a survey!

You have no recourse against the lender's valuer - the lender might, if and when they suffer a loss from a repossession. Though if they accepted that it was purely a desktop valuation they've probably taken on this sort of risk.

[Deleted User]

splreece said:

the estate agent said the entire estate has been deemed as 'defective' as its a 70s council estate.  

It cant have been deemed defective as it was a 70s council estate.   There must be another reason for it, otherwise a massive proportion of people owning homes are absolutely stuffed. 

If the estate agent is knowledgeable on this issue then press for more information.   Just saying 'cause its a 70s estate' isnt helping you figure out the problem

Hasbeen

splreece said:

Hi all.. 
I bought a house that I plan to refurb and rent out or resell 3yrs ago.  Mortgage with Halifax and went through no problem.  Just had a valuer come in and tell me the house is classed as defective so should never have been sold with mortgage and the value he gave is less than my outstanding mortgage as its cash buyer only. 

Neither the mortgage comp, solicitors or local agents mentioned any of this as I would have pulled out (I pulled out of a house previously for structural issues found in survey). 

Any help or ideas about what to do now would help as I am considering just bankrupting myself as I've spent load already trying to refurb the house and to finish it I would be around 30k in negative equity (assuming it sells at valuation price)... Any thoughts. 

What reason did the valuer give you for classing property as defective? There are probably millions of council properties built in the 70s that have no problems. You need to define defective. Also ask if entire estate was built as per these:
http://defectiveproperties.com/Defective-Property-List.php

splreece

Doozergirl said:

What have you done to the house? 

I don't quite understand what has happened.  Are you saying that you own the house with a mortgage, that you have spent £30k on it and are now trying to remortgage? 

In what way is it 'defective'.   I've dealt with plenty of unmortgageable properties and that isn't a word that crops up.  There is always a reason. 

Without any further information, I'm going to have a guess.  With a large renovation project, you can often render a house unmortgageable despite having spent money on it.  When you start stripping out kitchens, bathrooms, boilers etc. you're reducing the value, despite your attempt to improve it. 

It's why you usually need money in the bank or specialist funding for major renovations.  

The estate agent said the entire estate has been deemed as 'defective' as its a 70s council estate.  so he said theyve tried to get mortgages on it but none have been successful due to that response from valuers.

When i mentioned mine went straight through he said it maybe because the valuer just did a desk review rather than a real onsite review.

the house is only 50k so isn't an expensive property.. but if mort comp refuse to mort it then i wonder how i got mine, plus is there recourse against the surveyor?

I bought the house for just 50k and spent around 30 on it for a refurb and get up to what i researched a 3 bed in the area of that type go for.... just no sales in the estate and lots of sales in neighbouring estates...i kinda think i now now. 

splreece

Deleted_User said:

splreece said:

the estate agent said the entire estate has been deemed as 'defective' as its a 70s council estate.  

It cant have been deemed defective as it was a 70s council estate.   There must be another reason for it, otherwise a massive proportion of people owning homes are absolutely stuffed. 

If the estate agent is knowledgeable on this issue then press for more information.   Just saying 'cause its a 70s estate' isnt helping you figure out the problem

apologies, thats my typing... i am sure it wasnt just because its 70s, he mentioned that the type of build done in that time meant the whole estate is deemed this ... i will press.

thearchitect

OP

I cannot stress enough the need for you to find out exactly what the technical problem is.  It may be the construction system (I thought we had ironed most of these out by the 70s) or something else on the estate.