Mortgage valuation 'failed' due to 'single skin' wall

Four_Oaks_Bookworm

Hope you can help!  We recently applied to port our existing NatWest mortgage (no additional borrowing), to a Victorian detached.  The valuation has come back with only the first box ticked: "The property cannot be considered as suitable security because it is not readily saleable and mortgageable as the gable walls are only of single skin construction" . No other info or advice provided.  We've asked for clarificaiton and 'appealed', but can anyone advise on why this might be difficult particularly from a re-sale point of view: should we try and find another lender and swallow the (very hefty) ERC with Nat West, or should we just walk away because we'll never be able to sell it on in a few years for the same reason?  Does it cost a lot to 'double up' the wall for example?  All advice gratefully received.  TIA 

princeofpounds

Firstly, let's assume the surveyor hasn't made a mistake. That is rare, but it does happen, so it is worth checking yourself.

Different lenders have different standards when it comes to single skin walls. Almost all of them will not lend on single skin construction, but they do vary in terms of how much single skin they will allow before deciding it falls into that bracket. In the majority of cases, anything above the ground floor is usually a big no-no. You usually get more flexibility for things like dwarf walls in conservatories etc. A good mortgage broker with access to the CML Handbook should be able to let you know what the outline criteria are for different lenders.

NatWest are not really your only problem here - you won't be able to buy the property if you require a mortgage (unless there are some exceptions, I'm not up to date on individual lenders).

Why won't they do it? Because of the potential for damp and structural problems basically. Yes, that may not be the case with this property, but that's policy.

How expensive is it to fix? Pretty expensive. It's very disruptive whether you build on the inside or outside. Lots of things may need changing - where the windows sit, where pipes run, where the roof ends, where the footings sit etc.

Four_Oaks_Bookworm

princeofpounds said:

Firstly, let's assume the surveyor hasn't made a mistake. That is rare, but it does happen, so it is worth checking yourself.

Different lenders have different standards when it comes to single skin walls. Almost all of them will not lend on single skin construction, but they do vary in terms of how much single skin they will allow before deciding it falls into that bracket. In the majority of cases, anything above the ground floor is usually a big no-no. You usually get more flexibility for things like dwarf walls in conservatories etc. A good mortgage broker with access to the CML Handbook should be able to let you know what the outline criteria are for different lenders.

NatWest are not really your only problem here - you won't be able to buy the property if you require a mortgage (unless there are some exceptions, I'm not up to date on individual lenders).

Why won't they do it? Because of the potential for damp and structural problems basically. Yes, that may not be the case with this property, but that's policy.

How expensive is it to fix? Pretty expensive. It's very disruptive whether you build on the inside or outside. Lots of things may need changing - where the windows sit, where pipes run, where the roof ends, where the footings sit etc.

Thanks for all this advice.  Both walls have no windows/doors (one wall closely adjoins the neighbouring property, but without touching obv). There are no pipes (there's no CH in the rooms concerned), and gas enters the house from the front (not one of the walls in question).  But yes, footings and roof overhang would be an issue, unless you can get round the issue by building stud walls on the interior side? 

princeofpounds

Stud walls won't cut it, I believe. They are not proper structural walls sitting on footings.

FreeBear

princeofpounds said: Why won't they do it? Because of the potential for damp and structural problems basically.

A single skin wall (~110mm thick) also has a very poor thermal performance. Heating costs will be high because of it. A double thickness solid brick wall (~220mm thick) will perform better, not brilliantly... The easiest way to tell if the wall is only a single skin is to look at the pattern of bricks externally (as long as it hasn't been rendered). A couple of examples -

If the brick pattern is similar to the above, then the surveyor needs to clarify this in his report. If the wall has been rendered, then he needs to explain how he determined the thickness of the offending wall.

[Deleted User]

Useful information above but being pedantic, the surveyor on behalf of the lender doesnt need to do any of the things mentioned.  They just need to return a yay or nay decision with a basic outline. 
If OP wants to provide some alternative proof of construction to the lender then they can forward it to the valuer and then they may get more info back.  Its not the valuers job to justify his or her opinion to someone getting a mortgage 

staffie1

The house is mortgageable, since you already have a mortgage. 

JGB1955

staffie1 said:

The house is mortgageable, since you already have a mortgage. 

The OP has a mortgage on their existing property - the problem is porting it to the 'new' property.

AnotherJoe

staffie1 said:

The house is mortgageable, since you already have a mortgage. 

Wow. You're not even wrong.
OP, walk away because longer term even if you can search around and found someone to give a mortgage, they are likely to become rarer. This should be priced as if it's cash buyers only.