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

sevi1990

davidmcn 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.

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.

This is what I am going to put to the EA tomorrow. If the vendor is willing to pay for the structural report and it is mortgageable then our offer will still stand. If we withdraw, at some point they will have to have a report done as every one will more than likley fall at this hurdle. Before we put our offer in, the EA made it clear another EA  had a structural engineer look at it before it was valued and it was structurally fine. Now there is no paper work to support this claim. 

Slithery

sevi1990 said:

If we withdraw, at some point they will have to have a report done

Nope, they could sell to a cash buyer instead.

sevi1990

Rural_Puppy said:

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?

The room that looks huge has a much bigger beam in the middle of it. Possibly a !!!!!! conversion. Was there completion certs in the 50/60/70s? I have no idea when it was converted into 1 house

Owain_Moneysaver

The room layout in the attic (bedroom off a playroom) wouldn't comply with current building regulations for fire safety. And I don't like next door sharing a downpipe. 
The valuer probably recommended not getting a structural survey as for this lender it wouldn't affect the outcome and would be an unneccessary cost.
Without an MIStructE structural engineer's survey (which is not the same as a 'structural survey' from a RICS surveyor) I wouldn't like to guess whether this property is mortgageable at all, let alone what work will be required to it. It may be 'habitable' now but the mortgage lender needs to know it will remain not just habitable but saleable for the duration of the loan. 
The cracks in the ceiling are where walls have been knocked out. Without supporting lintels the property could be seriously structurally unstable (which could be causing the signs of movement, ie cracking). Knowing this is 2 cottages knocked into one makes me even more cautious. 

greatcrested

sevi1990 said:

davidmcn 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.

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.

 If the vendor is willing to pay for the structural report and it is mortgageable then our offer will still stand. If we withdraw, at some point they will have to have a report done as every one will more than likley fall at this hurdle. ..

As I said earlier, this lender is unlikely to change their decision. If you /the seller get a favourable structural report doe, you'd probably have to apply to a new lender - with uncertain resuts.

The seller could always sell to a cash buyer. A builder will pay a lower price, but knowing he can fix what needs doing himself.

blue_max_3

Sold now anyway.

DCFC79

OP Im sure you can find something in a better condition  than this house.

AdrianC

sevi1990 said:

The valuation officer has come out and set the valuation to zero due to strucual issues and has recommended that a structural engineer does NOT come and visit the propertry. Does a valuation officer have any grounds to even suggest this?

Yes, of course he does.

He's saying "Look, don't waste the engineer's time, it's not a borderline case. This place is not mortgageable. End of."

The house from my view is habitalable.

It's not about your view. It's about your mortgage lender's view. They want to know the place is good security for the loan.

...the estate agent mentioned that a structural engineer was directed from another EA when the property was intially valued had deemed the property structurally safe.

That's not exactly the greatest recommendation in the world...
"Ah, you'll be fine. It's not going to fall down and kill you. This week."

Would any structural engineer appointed by a EA visit a property and not give a report?

Anybody can pay an engineer to visit, and produce as many reports as you want. It won't make a difference to the lender's willingness to lend.

You want a 90% mortgage on a £200k property, £180k.
So the lender want to be certain it's got a reasonable chance of selling for £200k-ish if they repossess...
Let's say the surveyor down-values it £20k. That's now £180k-value in the lender's eyes. A 100% mortgage. They don't do those any more.
Let's say he downvalues it £50k, £150k-worth. We're now up to a 120% mortgage... Those were as dodgy as a dodgy thing even in 2006/7.
Except he hasn't downvalued it to £150k. He's said "IMHO, I wouldn't lend against this place..."

Oh, and looking at those pics? Your £30k budget is not going to touch the sides. You're an FTB. I'm going to have to be blunt here - you don't know what you're looking at... Gawd knows what you're going to find when you rip those ceilings down. It's not a case of a shonky extension, but the main house is fine. I can damn near smell that house from the pictures... BTW, most of that decor looks more early-mid 1990s than 1970s.

It's a small plot, on a busy road, sandwiched in next to a pub. It's not even very desirable for redevelopment.
https://goo.gl/maps/g6KZNZUu2jJGByim7

[Deleted User]

That house will be an absolute money pit ! It will costs thousands more than your £30k to make that right 
Sorry I thought it was revolting tbh 

FreeBear

If the EPC is anything to go by, it is solid brick construction, and as an earlier poster pointed out, possibly single skin in places. Heating+HW is going to cost some £1900 per year. Insulating the place will easily eat up half your budget, and fitting an efficient heating system will take another good chunk. Any structural issues could easily double your budget, and you still have decorating & general refurbishment to take in to account.

Living next door to a pub may be attractive to some, but not to most - There are properties around in much better condition without the issues this one has.