Single skin wall where most of the kitchen is

annetheman

Hi all,

I received a mortgage offer for a good condition 2-bed house in January. In February, I pulled out because timings didn't work with the vendor (I had to find a buyer for my own shared ownership leasehold flat and seller wanted to complete end March - I've just started selling to my buyer in the past week (end Feb)).

After pulling out, I found and had an offer accepted on another 2-bed house at the same price, closer to the station - houses in the same street sell for far more I think due to proximity to the station (<7 minutes walk - the previous house was <20 minute walk or 10 min bus).

The compromise with the new house is the condition - cosmetically, but also a dodgy-looking extension. I asked the EA about it on viewing and did have an inkling it could be a problem, though it is over 15 years old.

Since I plan to knock it down ASAP and build a new compliant one, and redecorate, I didn't mind and offered £35,000 below asking to accommodate this.

My mortgage broker changed the mortgage address over earlier this week, and today my worst fears came to fruition. The lender (Accord) said they will not lend due to valuation report that the kitchen is wholly within a single-skin extension.

My broker thinks she can find another lender who are okay with single-skin extensions but whether they will be okay with my high LTV is another question.

Has anyone had any experience with this? What was the outcome? 

I found a few old threads with 90% LTVs where the lender did lend but it's a different world so anything recent would be helpful.

I think I might have to find another house - very unlikely due to location (London). So my plan Z is to staircase where I am, and save for another few years to improve my LTV/deposit. Just a bit gutted really, and grateful for any advice! Thank you!

gwynlas

Let your broker do their best but it might mean that you have to pay a higher rate to secure a mortgage on this house. I once had to take on a second mortgage to carry out improvements ans some remedial works where an extension ghad been built lacking damp proof membrane. Only once work completed was I able to remortgage for a figure covering both.

annetheman

gwynlas said:

Let your broker do their best but it might mean that you have to pay a higher rate to secure a mortgage on this house. I once had to take on a second mortgage to carry out improvements ans some remedial works where an extension ghad been built lacking damp proof membrane. Only once work completed was I able to remortgage for a figure covering both.

Thanks, that is something she warned of. She is really excellent, if she can't find anyone, no one will. I'll do plan Z and staircase and stay where I am - sometimes life on life's terms means the outcome that I didn't want, but ends up being the best anyway...

Wow I didn't know that was possible - getting a second mortgage for remedial works. I guess it was short-term pain though.

I am comfortable in affordability for a higher rate - I am relatively high earner but my deposit is low - big debts to be paid by my bonus soon. If the higher rate can be offset by a longer term, we will try that, too.

Guess we will see on Tuesday. Thanks again

Wes121708

We purchased our house with a single skin extension which was the downstairs bathroom and only bathroom in our house never had any issues raised with the mortgage provider.
Have to say that we went with accord initial who valued it at 25k under asking so ended up going with another provider who valued it at what we offered so maybe it's accord who are just being cautious!

annetheman

Wes121708 said:

We purchased our house with a single skin extension which was the downstairs bathroom and only bathroom in our house never had any issues raised with the mortgage provider.
Have to say that we went with accord initial who valued it at 25k under asking so ended up going with another provider who valued it at what we offered so maybe it's accord who are just being cautious!

Wow that's really interesting to hear, thank you for sharing. My broker is looking for an alternative - do you mind sharing who you went with in the end? I think my major problem is both the single skin extension housing the (only) kitchen PLUS high LTV at 95%... If you had a higher LTV you might have had more options than I do!

Edit to add: great you got 25k off! I got a similar amount off asking price so I don't know if the seller would accept any less - actually I'm pretty sure they wouldn't!!

Wes121708

Unfortunately we did not get 25k off as the seller was not budging so ended up going with another lender which was NatWest at 90 LTV. They did a valuation which came out the same as what we offered which was only 4k under asking.
Good luck with it all.

anselld

How would you finance a 35k extension rebuild if you are already struggling with a 95% LTV?  (Assuming a mortgage was approved)

annetheman

anselld said:

How would you finance a 35k extension rebuild if you are already struggling with a 95% LTV?  (Assuming a mortgage was approved)

I am using the Debt Snowball method of overpaying on my debts so I can debt free by March 2025 (join my diary!), - my snowball is currently £1,200. After my DFD in March 2025, I will save at least the amount of overpayment, so around £1,200 per month, in addition to my debt minimum repayments I won't have. Adding on top of that this year's paid bonus was £23,000 (pro-rata'd to £11,000 because I started in July), next year will be roughly the same at £23,000 - so I can save £35,000 in 1 year for sure.

All being well, I should be able to do my extension less than a year after I move (assuming I move in 6 months) at £35k, maybe even more, considering my current SOA allows a £800 mortgage overpayment per month - but I'm keen to keep that up, will see.

annetheman

Wes121708 said:

Unfortunately we did not get 25k off as the seller was not budging so ended up going with another lender which was NatWest at 90 LTV. They did a valuation which came out the same as what we offered which was only 4k under asking.
Good luck with it all.

Ah, apologies I misunderstood what you meant by £25k under, but great to hear it worked out for you in the end at what you offered with Natwest!

I don't think my seller would budge if the valuation came in lower which is absolutely fair, as I think for the most part they've factored in the dodgy walls into the price (plus I've already negotiated the condition discount). If Santander valuation will not recommend lending on the single skin extension, I'm going to have to give up the house sadly - I will be devastated but if it's not meant to be, another house will do. Thanks a lot for the luck, I really will need it...!

Myci85

Hello, 

I've been following your recent threads with interest as we've a somewhat similar profile. Applied for a 95% LTV mortgage with Accord due to partner having some historic adverse and being on a fixed term job contract. 

Did not realise the house we are trying to buy also has the kitchen in a single skin extension, it is an ex council brick house and they all have the same single height side extensions, so I was hoping they were of the same construction as main house. Have this afternoon had text from EA informing us that mortgage surveyor went out today and have confirmed it is single skin kitchen and Accord won't lend on it. Vendor has said he is the same guy who did their mortgage valuation 9 years ago, and he thinks other lenders are less strict, Natwest being who they went through. 

I'm so worried that our pool of potential lenders was already quite small due to the adverse history, 95% LTV, fixed term contract and needing to borrow at top of affordability, that we're not going to find anyone who will consider us and this house now. 

annetheman

Myci85 said:

Hello, 

I've been following your recent threads with interest as we've a somewhat similar profile. Applied for a 95% LTV mortgage with Accord due to partner having some historic adverse and being on a fixed term job contract. 

Did not realise the house we are trying to buy also has the kitchen in a single skin extension, it is an ex council brick house and they all have the same single height side extensions, so I was hoping they were of the same construction as main house. Have this afternoon had text from EA informing us that mortgage surveyor went out today and have confirmed it is single skin kitchen and Accord won't lend on it. Vendor has said he is the same guy who did their mortgage valuation 9 years ago, and he thinks other lenders are less strict, Natwest being who they went through. 

I'm so worried that our pool of potential lenders was already quite small due to the adverse history, 95% LTV, fixed term contract and needing to borrow at top of affordability, that we're not going to find anyone who will consider us and this house now. 

Hi, the pool is small but there were definitely a few options of mainstream lenders that don't have any specific exclusions of this type of property; not they they explicitly do lend on it, that'll be for the valuer to advise, but they don't exclude them outright. NatWest was one, Santander was another, and there were a few more I can't remember - we went for Santander because of the slightly lower monthly payment albeit on a 5 year fix...! You can view their lending criteria here to see what they say about fixed term contractors - but IMO definitely trust your broker and go with whatever they recommend as there may be another lender who is even better for you based on your specific circumstances. Good luck!