valuation officer has reported that he does not reccomend a structual engineer- zero valuation

AnotherJoe

sevi1990 said:

Thrugelmir said:

What mortgage product are you applying for? How much money do you have put aside to spend on the property? 

10% and around 30k set aside

Spend £100 of that £30k on running shoes, and leg it.

sevi1990

AnotherJoe said:

sevi1990 said:

Thrugelmir said:

What mortgage product are you applying for? How much money do you have put aside to spend on the property? 

10% and around 30k set aside

Spend £100 of that £30k on running shoes, and leg it.

Thanks 

Rural_Puppy

Showing up now as sold? There are signs of dampness in a few rooms. I wonder if it has been badly extended, and is subsiding?
Probably a money pit. Surveyor has done you a favour , if something looks cheap, there will be a reason.

ProDave

Okay I can understand the property has problems, and needs a lot of work so that will reduce it's value.  But reduce it to zero does not make sense.  At the very worst it is worth the land value as a building plot.

sevi1990

Rural_Puppy said:

Showing up now as sold? There are signs of dampness in a few rooms. I wonder if it has been badly extended, and is subsiding?
Probably a money pit. Surveyor has done you a favour , if something looks cheap, there will be a reason.

Sold STC. Yes there is dampness on the gable end and interior wall. Every other wall is in ok condition regarding damp. This was originally 2 cottages. No extension on the house. 

sevi1990

ProDave said:

Okay I can understand the property has problems, and needs a lot of work so that will reduce it's value.  But reduce it to zero does not make sense.  At the very worst it is worth the land value as a building plot.

From what I can gather if it does not meet the lender criteria then it has a zero value to them. Hence the zero value

Thrugelmir

sevi1990 said:

ProDave said:

Okay I can understand the property has problems, and needs a lot of work so that will reduce it's value.  But reduce it to zero does not make sense.  At the very worst it is worth the land value as a building plot.

From what I can gather if it does not meet the lender criteria then it has a zero value to them. Hence the zero value

The surveyor will assess if the property provides adequate security for the money being advanced by the lender. With little to no equity. There's nothing tangible in the event of a forced fire sale. 

Slithery

It doesn't mean that it's worth £0, just that that's the amount the lender would be prepared to give you.

davidmcn

ProDave said:

Okay I can understand the property has problems, and needs a lot of work so that will reduce it's value.  But reduce it to zero does not make sense.  At the very worst it is worth the land value as a building plot.

Yes, but if you're applying for a standard residential mortgage, the lender isn't interested in potential building plots, only habitable houses without significant problems. So for the lender's purposes, the property's current value is zero.

If the surveyor's suspicions are proved incorrect by a clear structural engineer's report (and assuming it doesn't fail any other criteria) it can then be given a value for mortgage purposes.

Rural_Puppy

sevi1990 said:

Rural_Puppy said:

Showing up now as sold? There are signs of dampness in a few rooms. I wonder if it has been badly extended, and is subsiding?
Probably a money pit. Surveyor has done you a favour , if something looks cheap, there will be a reason.

Sold STC. Yes there is dampness on the gable end and interior wall. Every other wall is in ok condition regarding damp. This was originally 2 cottages. No extension on the house. 

Ok. So possibly a botched conversion. Maybe supporting walls have been removed. One of the rooms looks huge.  Is there a completion certificate for the works?