Mortgage lenders and EWS- wooden balcony

Deedoodee

I’m looking at a flat. Purpose built in 1990’s, brick exterior, and low rise (6 floors) but the terraces and balcony’s are wood. There’s no (obvious) cladding. I’ve been told by a friend who lives in the building that it has problems with the EWS due to wooden balconies. another flat as gone up for sale advertised ‘cash purchase only’ but it doesn’t explicitly say it’s because of EWS. the one I’m looking at is not yet on the market.

are any banks offering mortgages for these? I’d be looking to borrow about 40K

K_S

@deedoodee As I'm sure you suspect, there is no black and white answer to your question. And generally speaking, low-rise means 4 floors and below. With flats of 6 floors, there are usually other complicating factors as well.

If you can share the rightmove/zoopla ad for the cash only flat, I can give a more informed opinion.

 

Deedoodee

K_S said:

@deedoodee As I'm sure you suspect, there is no black and white answer to your question. And generally speaking, low-rise means 4 floors and below. With flats of 6 floors, there are usually other complicating factors as well.

If you can share the rightmove/zoopla ad for the cash only flat, I can give a more informed opinion.

 

Are high street lenders still lending on them?

K_S

Deedoodee said:

K_S said:

@deedoodee As I'm sure you suspect, there is no black and white answer to your question. And generally speaking, low-rise means 4 floors and below. With flats of 6 floors, there are usually other complicating factors as well.

If you can share the rightmove/zoopla ad for the cash only flat, I can give a more informed opinion.

 

Are high street lenders still lending on them?

@deedoodee There's no yes/no answer. Depends on the property specifics.

But with 6 floors, a flat on sale for cash-buyers only and a resident's opinion, it's unlikely that this flat will be easily mortgageable (if at all).

Deedoodee

Thanks. If they are mortgagable, is the cost of the mortgage affected by the EWS? Ie higher interest?

There some less expensive flats that I could buy cash but I will lose over £4000 from my LISA if I dont get a mortgage. 

K_S

Deedoodee said:

Thanks. If they are mortgagable, is the cost of the mortgage affected by the EWS? Ie higher interest?

There some less expensive flats that I could buy cash but I will lose over £4000 from my LISA if I dont get a mortgage. 

@deedoodee Generally speaking, for standard resi mortgages, lenders have products with set interest rates. If you meet the criteria for a certain lender/product, you get that interest rate.

Ordinarily, there is no "loading" ie there isn't a scenario in which person A gets a 70% LTV Halifax mortgage at 2% on a "normal" flat and person B gets a 70% LTV Halifax mortgage on a flat but they are charged 3% because it has cladding. I hope that makes sense.

Deedoodee

K_S said:

Deedoodee said:

Thanks. If they are mortgagable, is the cost of the mortgage affected by the EWS? Ie higher interest?

There some less expensive flats that I could buy cash but I will lose over £4000 from my LISA if I dont get a mortgage. 

@deedoodee Generally speaking, for standard resi mortgages, lenders have products with set interest rates. If you meet the criteria for a certain lender/product, you get that interest rate.

Ordinarily, there is no "loading" ie there isn't a scenario in which person A gets a 70% LTV Halifax mortgage at 2% on a "normal" flat and person B gets a 70% LTV Halifax mortgage on a flat but they are charged 3% because it has cladding. I hope that makes sense.

Yes. I think that’s exactly what I’m asking. Thanks 

MWT

Deedoodee said:

I’m looking at a flat. Purpose built in 1990’s, brick exterior, and low rise (6 floors) but the terraces and balcony’s are wood. There’s no (obvious) cladding. ...

Unfortunately even when the exterior is brick there are examples where there is cladding behind the brick, hopefully that isn't the case for the building you are looking at though...

Deedoodee

Just an update- the flats got a B1 rating and advertised as mortgageable. 

K_S

Deedoodee said:

Just an update- the flats got a B1 rating and advertised as mortgageable. 

@deedoodee That's definitely a good sign (subject to the certificate being issued by an appropriately qualified person), means no remedial work required. 

So it's no longer advertised as cash-buyers only? I presume they've upped the asking price as well?