Expiring Mortgage Offer - Risky Re-Valuation - Please Help!

annetheman

Hi there - sorry in advance for the length, it's a bit complex --

I've been buying a house with a single-skin brick extension housing the whole kitchen; the extension is the reason a lot of valuers will not recommend for lending.

Some lenders such as Accord (who I had an offer in hand for another property from, received within 3 working days, then rescinded upon changing to this property) explicitly state they do not lend on this type of property, whereas others don't say either way.

My broker went for Santander who didn't outright exclude this construction and got a mortgage offer secured, expiring 22 September.

It is exactly 5 months later and we haven't exchanged because of an ongoing Title issue that looks very likely to rumble on past the mortgage offer expiry date (product completion deadline is I think shortly thereafter, around 26th September?).

I can either extend the current offer or apply from scratch.

IF EXTENDING CURRENT OFFER: Santander have advised my broker can request a desktop valuation for an extension - it was not guaranteed at my high (95%) LTV but possible if circumstances necessitate it (e.g. Title is in hand and we are very near exchange/completion) and the argument for it is compelling.

IF APPLYING FROM SCRATCH AGAIN: a full new application would definitely mandate an in-person again. 

The problem is the valuation's subjective nature - the original valuer may have thought nothing of the single-skin brick kitchen, but another one may think it's unlendable now (like Accord's valuer did), or decrease the lending amount.

I would therefore like to avoid an in-person valuation again if at all possible.

I'd really appreciate opinions: should I go ahead and ask for an extension now (we are 75% sure we won't make deadline, but adverse possession Title application is really hard to predict, and it would be a waste and an necessary risk if we do make it) or reapply for a new Santander mortgage closer to the deadline of my current to give me 6 more months of 'peace of mind'?

Also what is the likelihood of the second valuer deciding the kitchen is a problem? 

If it is worth knowing, my debt is lower by about £3k and my pay has increased by about £4k since I applied (new job), and I'm living with my dad having sold my flat today (23 August) so outgoings negligible (he doesn't want any money, I tried). Relatively high earner £89k basic, £23k bonus, lots of debt (see sig - can pay down more now from 23 August, £2.5-3k per month or more), single PAYE. 1 missed payment May 2022 - credit card of £400 I forgot to set up DD for.

Thank you for any comments/advice!

Myci85

No real advice to give, I think if it was me I'd be inclined to wait it out and reapply when things looked close to sorted with the title issue? But I'm saying that with no idea the likelihood you might just get a desktop valuation for an extension. 

If you did for any reason have an issue with Santander reissuing an offer, we got an offer from Skipton on a similar property, kitchen fully in single skin, single height side extension. We weren't able to go ahead on that one for other reasons, but they might be another lender to try if it comes to it. 

annetheman

Myci85 said:

No real advice to give, I think if it was me I'd be inclined to wait it out and reapply when things looked close to sorted with the title issue? But I'm saying that with no idea the likelihood you might just get a desktop valuation for an extension. 

If you did for any reason have an issue with Santander reissuing an offer, we got an offer from Skipton on a similar property, kitchen fully in single skin, single height side extension. We weren't able to go ahead on that one for other reasons, but they might be another lender to try if it comes to it. 

That's very helpful, thank you so much. I remember your mortgage challenges with a similar house, great to hear Skipton BS did lend to you. I think my broker chose Santander for good reason (she is really excellent) but definitely will mention Skipton should Santander's new valuation fail. 

Thank you! I don't know if the gamble of desktop is worth it, but it depends on how progressed the Title is. If the end is in sight, we will go for extension -- problem is they do a hard search and if it's only going to give me a month AND come with an in-person valuation, I really might as well apply for the new product at same rate and have 6 months of reassurance if Title issue is still in the sending-queries-by-post-and-waiting-for-answers-by-post stages.....!!!

You did a wise thing getting another house!

amnblog

A property with a single skin extension and a Title issue? 

Why are you buying this property? Is it going to be a problem later, as it is now?

annetheman

amnblog said:

A property with a single skin extension and a Title issue? 

Why are you buying this property? Is it going to be a problem later, as it is now?

Not at all, I am going to knock down the extension (it is too small for me, also) and rebuild bigger and most importantly with compliant external walls! So won't be an issue - but of course lenders don't lend on potential, they lend on what's being bought as-is, so that was irrelevant for my mortgage application.

With regards to the Title, Santander do not require possessory title nor do they need indemnity insurance for it because there is no structure on the unregistered land. Santander advised as long as the valuer thinks it is worth the lending amount without the unregistered land, they will accept it (so no change to offer after my broker informed them). I did insist on it to future-proof my selling, to your point.

The current Title application is about 6 weeks in; Land Registry are nearing the point of sending notices to surrounding land owners, which is the final stage before approval.

However, my offer will expire, thanks to how long it has taken to get here - the solicitor's first application was rejected because they sent copies to support the application (you must send originals for a first charge, quite an embarrassing error for a professional conveyancer). This cost us 2 months.

That hopefully adds more colour to a succinct version of 'why' and 'will it be a problem on resale' but there is even more detail, it'd just get too long to read.

Any advice on applying again or asking for an extension would be super appreciated!