Mortgage on property with an annex knocked back at valuation stage.

curtisryan

I've seen it's a minefield trying to get a mortgage on a property with an annex already. I'm using a mortgage broker and we have gone with Nationwide as they said they would usually lend on properties with self-contained annexes with its own kitchen. However at the valuation stage, it was knocked back because... it has an annex with its own kitchen?? Even though they said beforehand that would be ok.
the valuation comments also said:
the heating didn't work - it works perfectly and is a new combi boiler with modern radiators
utilities need repair - all the utilities are perfectly fine and don't need any repair works
needed new bathrooms - both bathrooms are perfectly functional all be it a little outdated and one has a rail near the toilet
needed new carpet - this ones a bit ridiculous its just carpet tiles throughout?
one of the kitchens needs to be removed - again, they said 2 kitchens were ok.

my plan is to knock through back into 1 property once I'm in as alls that was done to separate the 2 was to block up a doorway. I already have approval for this.

after the valuation, i sent off an appeal outlaying everything I've said here all with proper evidence and even a cost of works on taking out the 2nd kitchen and knocking through to one building again. I even said that the owners would be willing to let me in to take the 2nd kitchen out before completion or to release the mortgage on retention and asked just what they want exactly to make it suitable security.

they've come back after the appeal and knocked it back again without any further comments?? i wouldn't mind but everything they're saying just doesn't apply to this house and contradicts their own lending criteria. I cant even go back to the sellers saying they want xyz doing before I can get a mortgage.

id really appreciate any advice on how i go about this now

[Deleted User]

Nationwide are usually better for when the annexe is separate and detached from the main property. That way there is less uncertainty about what is to happen with the property.    They generally dont like properties that can be altered easily post completion (in my experience anyway)

Pretty much all lenders allow 2 kitchens in some form but also pretty much all lenders will pass to the valuer to comment on it being suitable security.   For example Natwest state: "Natwest can potentially lend on properties that have more than one kitchen where part of an internal annex - subject to surveyors comments"  whereas Nationwide state "2nd kitchens in the main home are generally unacceptable due to associated risk of converting the property"

If the surveyor deemed the 2nd kitchen to be part of the main building which is possible if it is just a door thats been blocked then this might be a reason for decline.  Natwest specifically only allow it if its internal so this might have a better chance.  


To be honest, as a broker, if this was my case id just send the rightmove link to lenders business manager to get a pre val enquiry done to avoid wasting time. 

Thrugelmir

curtisryan said:

 i wouldn't mind but everything they're saying just doesn't apply to this house and contradicts their own lending criteria. 

Bottom line is whether the property is deemed adequate security for the mortgage advance and whether the layout of the property is acceptable. Mortgage lenders are not going to spend time debating their lending criteria with you nor justify their decision making process. 

curtisryan

Deleted_User said:

Nationwide are usually better for when the annexe is separate and detached from the main property. That way there is less uncertainty about what is to happen with the property.    They generally dont like properties that can be altered easily post completion (in my experience anyway)

Pretty much all lenders allow 2 kitchens in some form but also pretty much all lenders will pass to the valuer to comment on it being suitable security.   For example Natwest state: "Natwest can potentially lend on properties that have more than one kitchen where part of an internal annex - subject to surveyors comments"  whereas Nationwide state "2nd kitchens in the main home are generally unacceptable due to associated risk of converting the property"

If the surveyor deemed the 2nd kitchen to be part of the main building which is possible if it is just a door thats been blocked then this might be a reason for decline.  Natwest specifically only allow it if its internal so this might have a better chance.  


To be honest, as a broker, if this was my case id just send the rightmove link to lenders business manager to get a pre val enquiry done to avoid wasting time. 

This is exactly what we did first, my broker sent all the details, right move link etc to her business development manager and he gave us the all clear saying yeah that would be suitable “subject to valuer comments” so we didn’t think it would be an issue.

curtisryan

Thrugelmir said:

curtisryan said:

 i wouldn't mind but everything they're saying just doesn't apply to this house and contradicts their own lending criteria. 

Bottom line is whether the property is deemed adequate security for the mortgage advance and whether the layout of the property is acceptable. Mortgage lenders are not going to spend time debating their lending criteria with you nor justify their decision making process. 

Surely though if I have appealed their decision with evidence to prove what the valuer has said is incorrect I.e. saying the heating doesn’t work and utilities need repair then they should explain that decision? 

MWT

curtisryan said:

Thrugelmir said:

curtisryan said:

 i wouldn't mind but everything they're saying just doesn't apply to this house and contradicts their own lending criteria. 

Bottom line is whether the property is deemed adequate security for the mortgage advance and whether the layout of the property is acceptable. Mortgage lenders are not going to spend time debating their lending criteria with you nor justify their decision making process. 

Surely though if I have appealed their decision with evidence to prove what the valuer has said is incorrect I.e. saying the heating doesn’t work and utilities need repair then they should explain that decision? 

They have no obligation to explain or justify, you appeal, they review and if the answer is still 'no' then that is all you get.

Generally you are better off changing lenders and getting a different valuer than trying to appeal a decision.

Thrugelmir

curtisryan said:

Thrugelmir said:

curtisryan said:

 i wouldn't mind but everything they're saying just doesn't apply to this house and contradicts their own lending criteria. 

Bottom line is whether the property is deemed adequate security for the mortgage advance and whether the layout of the property is acceptable. Mortgage lenders are not going to spend time debating their lending criteria with you nor justify their decision making process. 

Surely though if I have appealed their decision with evidence to prove what the valuer has said is incorrect I.e. saying the heating doesn’t work and utilities need repair then they should explain that decision? 

I doubt that's the reason for the decline. 

curtisryan

Thrugelmir said:

curtisryan said:

Thrugelmir said:

curtisryan said:

 i wouldn't mind but everything they're saying just doesn't apply to this house and contradicts their own lending criteria. 

Bottom line is whether the property is deemed adequate security for the mortgage advance and whether the layout of the property is acceptable. Mortgage lenders are not going to spend time debating their lending criteria with you nor justify their decision making process. 

Surely though if I have appealed their decision with evidence to prove what the valuer has said is incorrect I.e. saying the heating doesn’t work and utilities need repair then they should explain that decision? 

I doubt that's the reason for the decline. 

I also doubt that’s the reason for the decline but that’s the reason they have given.