Halifax Mortgage Valuation - Cannot provide valuation figure!

Arefer

Hello everyone,

I've just received the Esurv Valuation report for a property I'm purchasing through Halifax. Please see the content below. Does anyone know what it means and where I stand now? Is the property unsuitable for mortgage purposes or do I have to provide an Asbestos survey report for them to then decide on a valuation figure?

It's a standard construction 1930s house and has Artex ceilings, but these are quite common and shouldn't have affected a valuation.

Any help would be appreciated. Thanks.

VALUATION & MARKET COMMENT

In its present condition I cannot provide a valuation figure.

MATTERS AFFECTING VALUE
The property is thought to contain asbestos material which may represent a health hazard. You should instruct a licensed specialist to check the property, as remedial work may be required and will have to comply with legal requirements.
Trees close to the property could cause damage and specialist advice is recommended. The property has suffered previous movement but I saw no evidence to suggest this is ongoing. The property is in poor condition and requires a full repair and refurbishment programme.

tacpot12

It means that the property is in such a poor condition it does not have a value in the retail market. I would be very surprised if Halifax will give you a retail mortgage to buy this property. You may be able to buy it with a commercial mortgage. I would speak to Halifax to see if they are prepared to lend you anything against the property. If they won't, I would speak to a mortgage broker to see if they can find a lender who will lend you what you need. 

amnblog

Did you did you secure this property at auction. Sounds like it is not mortgageable on a standard product in its current condition.
You may be able to obtain some short term borrowing against it whilst you fix everything but not without a very sizeable deposit.
Speak to a broker.

Thrugelmir

Arefer said:

The property is in poor condition and requires a full repair and refurbishment programme.

Could you expand on why the surveyor has said this? Is the property habitable. 

Arefer

Thanks for the replies tacpot12, amnblog and Thrugelmir.
The property is habitable but does need a fair bit of refurbishment and modernisation. It is a standard purchase through estate agents (not auction), and is currently inhabited by the vendors.
I’ve spoken to Halifax since my post, and they said the surveyor has asked to see an asbestos survey report before he can provide a valuation figure. 

I’m arranging the same now but don’t have much hope as they are bound to find some form of asbestos in a 1930s house. Very odd request for a valuation survey!

barbedhook

A lot of the old artex  contained some asbestos so that might be what they want checking but i think he could have said where he thought the asbestos was so it would have been easier for you to get it checked. Good luck 

MWT

The artex is certain to contain asbestos but by itself I wouldn't have though that warranted a zero value, but it was also used for loft insulation back then and in a much more dangerous form.

I suspect it may be more than the artex that he is concerned about...

Arefer

Just to update everyone, the asbestos survey detected asbestos (Chrysotile) in the common form of textured ceiling coatings, but they were all in good condition and didn’t require removing.

The Surveyor reviewed the report and agreed the valuation at the offered price, and I now have a mortgage offer!

Thanks for your help, everyone