HSBC - Reinforced Concrete Issues - Help?

stx1

Hi,

I am purchasing a flat which is in a newish apartment block (was built in 2016 or so) in London. The property is part of a development of nine buildings - both owner occupied and tenanted.

There are no other issues with the property but yesterday my mortgage broker came back saying HSBC (the bank we are using) has declined to lend on the property (I'm using a 90% LTV) saying that the property is built with reinforced concrete, and that the bank has restricted lending to buildings using this type of material.

I can't understand it - Surely if this is the case then half the apartment blocks in London would be unmortgageable. After doing some more in-depth research, my impression is that all new apartment blocks use reinforced concrete, but are not using precast reinforced concrete which was used in older buildings, as well as council housing - which I can understand a lender would not be willing to lend on.

What recourse do I have now? Is this an open and shut case or can I appeal this process or contest the valuation in some way? I'm at my wits' end as I have never come across this issue before.

Any advice would be appreciated

[Deleted User]

they have presumably restricted lending to 80%?  or not at all?   

HSBC have a fairly clear policy on non standard construction.  It will either be at 80% or 0% depending on type of build.    They never have done any non standard at 90%. 

Did you choose them yourself? Or use a broker? 

Either way you cant do much about it unless the valuer has made an error with what build type it is.  Their money, their rules

There are other lenders who would be more flexible depending on when it was built.  Also if its got any cladding on it anywhere then just walk away now and save your time