Buying a Property Mid-Conversion

redsquirrel27

I'm buying a property, to be my home, which is in the process of being converted from a shop to a GFF.  I've been trying to finalise my mortgage via a broker, but lenders would want to wait until the local council's signed off the property as residential before sending in their surveyor.  Understandable I feel.  The estate agent's asking for the mortgage to be sorted sooner, but the broker noted that if a lender's surveyor goes in too early; the property could be valued at zero, ie not yet habitable.  There's an estimated 4 week wait until the sign-off could happen and I have a decision in principle from the brokers.  I feel I need to stand firm on this and wait but don't want to lose the property.  Has anyone else been in this position and can help with advice?

davidmcn

Surely it can be valued in the meantime and then all you need to ensure is that the contractual standard it's to be built to corresponds with what your lender is expecting? "Normal" newbuilds just have a desktop valuation to start with, and the lenders typically take the view that if it's signed off for NHBC etc purposes at the end, that'll do them.

ACG

The estate agent is being stupid and putting the pound signs before common sense. 

Tell them that it is going to cost you money for a residential surveyor to go out and try to value what is currently a commercial property. Ask if they will cover the cost of the valuation if that happens. It makes no sense to apply before the property is in a mortgageable state. 

redsquirrel27

Thanks both.  I've spoken to my broker again and they strongly recommend that we don't get a valuation too soon.  I'm going to speak to my solicitors to check if they've received any documentation yet that will give the lender some assurance.  If not, I'll have to sit tight and firm up my mortgage (fingers crossed) in a couple of weeks.