Mortgage Refused

davybull

Just had a Mortgage from Santander refused because there is outline planning permission to build a bungalow at the back of the plot.

We were putting an £85,000 deposit down.

We have no intention of doing the build and have offered to sign a document ensuring this but to no avail.

So now need to look for a different company. 

Similar situation to a previous post  in 2015. I can only see Santander doing this.

https://forums.moneysavingexpert.com/discussion/5251859/mortgage-refused-because-outline-planning-permission-is-on-the-land

[Deleted User]

Fairly standard policy from Santander.  Never made an exception on it as far as i am aware. They refuse to split title if there is a mortgage on it so take a blanket rejection when there is a risk of that happening. 

london21

Try a different lender or a different property. 

Thrugelmir

How much has the outline planning permission inflated the price of the property? 

Chetlaw

@davybull did you find another lender ? We are having a similar situation . Santander have said its the surveyor policy not theirs. They said legal and general are the surveyors for most banks valuations, so we would find this issue if we switch providers.. 

housebuyer143

Chetlaw said:

@davybull did you find another lender ? We are having a similar situation . Santander have said its the surveyor policy not theirs. They said legal and general are the surveyors for most banks valuations, so we would find this issue if we switch providers.. 

It's their policy and many lenders do not use legal and general. Connells is one of the larger ones.

Do you have a broker? Ask them to find you a suitable lender.

dunstonh

Care:  2022 thread revival

@davybull did you find another lender ? We are having a similar situation . Santander have said its the surveyor policy not theirs. They said legal and general are the surveyors for most banks valuations, so we would find this issue if we switch providers.. 

In some areas, L&G are the only valuers for all the lenders.  In others they are not.  

In the OP's case, they were not proceeding with the build in the planning permission.   So, all they had to do is cancel the planning application.       If you are in the similar situation is the OP, as you say you are, then cancel the planning application.

MWT

dunstonh said:

In the OP's case, they were not proceeding with the build in the planning permission.   So, all they had to do is cancel the planning application.       If you are in the similar situation is the OP, as you say you are, then cancel the planning application.

 You can't do that on property that you do not yet own though...

Would be interesting to know if an undertaking to cancel it would have been acceptable?

dunstonh

MWT said:

dunstonh said:

In the OP's case, they were not proceeding with the build in the planning permission.   So, all they had to do is cancel the planning application.       If you are in the similar situation is the OP, as you say you are, then cancel the planning application.

 You can't do that on property that you do not yet own though...

Would be interesting to know if an undertaking to cancel it would have been acceptable?

Good point. I was working on the basis that it was a remortgage rather than a purchase.

ElwoodBlues

I don't think you can 'cancel' planning permission anyway? Once it's been decided on by the LA (approved/refused), that's it - it stays valid for the time that the LA states (usually 3 years), and then it expires if the work hasn't commenced.

Only other possibility might be to ask the vendor/conveyancers to separate the land where the PP is onto a separate title (you still want to make sure you're buying both, obviously). Then the mortgaged property won't have PP on it. But bear in mind that the property will be valued sans the separate land. That's also what would happen if the second dwelling were ever built anyway.

In reality, finding a less fussy lender might be easier.