Non standard construction type - remortgage on unencumbered property TSB

firstbuyer

Hello - me again, lots of q's.

My auntie is remortgaging her property which she currently owns outright. She is going to buy our property as a cash buyer but needs to release some equity to afford a portion she doesnt have in cash at the moment.

We estimated value of around 420k, and she wants to remortgage to release 200k so around a 48% LTV - the estimated value was just for us to see if it was worth it for her. There aren't any comparable houses currently to compare against.

Application was made to TSB via a broker and valuation taken today. Valuer seemed a bit snooty and mentioned briefly that she will struggle to remortgage because it was a RTB and it is concrete. She mentioned to him that it wasn't a RTB for her and she had got a mortgage to purchase it from her parents in the 80s.

These weren't things considered when applying, as she didn't think it would be an issue.

Has anyone been through the same, or has any assurances?

Thanks!

user1977

If you couldn't find any comparables then how did you arrive at £420k?

Do you know what variety of concrete construction it is? Some pics might help if you don't know.

firstbuyer

user1977 said:

If you couldn't find any comparables then how did you arrive at £420k?

Do you know what variety of concrete construction it is? Some pics might help if you don't know.

Couldn't find any comparables from this year, house round the corner which is end of terrace and 4bed sold for 550, hers is terraced and 3bed so we est 425 ourselves. Might be completely off though, agreed!

Hope the pic below helps, didn't want to include the entire house.

firstbuyer

We've just heard back from TSB and they valued it at £0 so she is trying to find another lender.

We've also got her original mortgage offer from YEARS ago halifax surveyed it and noted "Shuttered concrete construction, part tile hung, part pebbledash rendered externally, Timber pitch tiled roof"

If anyone has any experience of lenders that would lend on this type of property please leave a comment!

alanyau88

You have to find out what type of construction it is.  Some concrete construction is mortgageable but most are not unless you go to very expensive specialist mortgage lenders.  Does the mortgage report state what type of construction name or what construction firm constructed the property?  If not, you could go to the council to get the information or microfilms.  It's difficult for the surveyor if they don't know what type of non standard construction the property is and because of this, it is likely they will value it at £0. 

What about speaking to the neighbourhood or people who had purchased a similar type property recently and ask them if they know what type of construction name and lender they used.  It might be a lot of work but if you want to re-mortgage, it can be a lot of work, especially if your Auntie decides to sell the property in the future.  Hope that helps.

firstbuyer

alanyau88 said:

You have to find out what type of construction it is.  Some concrete construction is mortgageable but most are not unless you go to very expensive specialist mortgage lenders.  Does the mortgage report state what type of construction name or what construction firm constructed the property?  If not, you could go to the council to get the information or microfilms.  It's difficult for the surveyor if they don't know what type of non standard construction the property is and because of this, it is likely they will value it at £0. 

What about speaking to the neighbourhood or people who had purchased a similar type property recently and ask them if they know what type of construction name and lender they used.  It might be a lot of work but if you want to re-mortgage, it can be a lot of work, especially if your Auntie decides to sell the property in the future.  Hope that helps.

Thank you!

she’s spoken to neighbours now and it’s a wimpey no fines property.

will contact council again on Monday, on hold for over an hour today so gave up! 

We actually said it was a good thing she’s done this now so she is wiser to all of this stuff!

alanyau88

Wimpey No Fines is probably the best type of Concrete property to lenders so it shouldn't be too much of a problem to get a mortgage on.  You do need some sort of evidence to show that it is Wimpey No Fines though as Surveyors may not believe you.  Hopefully the council could assist.  Try to also find out when the property was constructed because Lenders will need to know that.  Anything before 1930's is probably a no due to longevity issues.  

The types of lenders that will lend to Wimpey No Fines includes Nationwide and Santander.  Some of the non-high street lenders such as Kensington, Shawbrook, and Aldermore etc will consider these as well but best to try to stick to the high street lenders if possible due to lower rates.  Get a good broker that knows their stuff on Non Standard Construction as they will liaise with the lenders to clarify the chances of lending.  Good Luck!

[Deleted User]

TSB also lend on Wimpy No fines.  Maybe worth an appeal if valuer hasnt realised what type of concrete it is

firstbuyer

Thanks Both.

Broker is being a bit crap in all honesty, gave him all of the info and was told he would get back to her this morning, nothing received. Rang him around an hour ago and he hasn't even looked into it.

I've bought the deeds for neighbouring properties and can see most have gone with RBS/Halifax or Natwest. Not sure if she should hedge her bet in applying direct?

alanyau88

Natwest will lend to No-fines concrete so should be fine if you apply to Natwest.  As stated previously, you probably do need some evidence to back up your claims that it is indeed Wimpey no-fines concrete or else the surveyor may again mark it down to zero.  

I do recommend a good broker that knows his stuff though to get you through it.  It's very difficult to apply direct if your Auntie is not familiar with the mortgaging landscape and what items are required.  If your broker is not interested in Non Standard Construction, as most are not frankly, then look for one that will do the work for you.

firstbuyer

alanyau88 said:

Natwest will lend to No-fines concrete so should be fine if you apply to Natwest.  As stated previously, you probably do need some evidence to back up your claims that it is indeed Wimpey no-fines concrete or else the surveyor may again mark it down to zero.  

I do recommend a good broker that knows his stuff though to get you through it.  It's very difficult to apply direct if your Auntie is not familiar with the mortgaging landscape and what items are required.  If your broker is not interested in Non Standard Construction, as most are not frankly, then look for one that will do the work for you.

Thank you.

We've tried the council, HA that manage the other still council owned properties, land registry, local surveyors and come up with nothing in tangible evidence its a wimpey no fines.

Apart from neighbours, which we're going to flag down today - do you have any idea where else we can check?