Trouble getting a mortgage on a site currently used as a CL.

ronniehall

We're buying a house that currently operates as a Certified Location (The Caravan and Motorhome Club). We won't be applying for CL status ourselves, we're just going to enjoy a lovely big garden.

We were approved for our mortgage with no issues but then the mortgage lender used a surveyor to value the property and has now declined the mortgage owing to the "caravan site" on the grounds. It is a Certified Location (exempt from planning, very basic, no toilet block etc, can only have up to 5 caravans at a time and only operates a few months a year) NOT a caravan site. The owner also has other hobbies (falconry, restoring old farm equipment) none of which we will be continuing and these havent been sighted as an issue.

We're waiting for the mortgage advisor to call us back but does anyone else have experience of this? Surely the hobbies of the current owners (it isn't a commercial business they are retired caravan owners and use the site for their caravan club friends essentially) can't prevent us from purchasing a residential property? There is no change of use as it isn't a registered caravan park, merely a certified location, so it is a residential property. We'd need to reapply if we wanted to be a CL (which we don't) so this ends when the current owners leave.

ACG

Your looking at this based on your circumstances. 
The lender is looking at this on the basis of it being a property with a business, are you likely to proceed with the business? (you say not, but the lender has no way of knowing your intentions). 

There are 2 ways forward:
1) The current owner closes down the business, removes the caravans and anything else that would cause a problem (they will likely have to do this for anyone else so why not you) and you ask for a new valuation in a few weeks, in the meantime you could carry on with the legal work - if the lender and vendor will agree to it. 
2) You/your broker tries to discuss with the underwriter the situation. Confirms you will not be purchasing the caravans and they will be removed and show confirmation  you would need to re-apply for CL which you have no intention of doing or experience and hope they look at your current circumstances, higher paid income, you want a large garden etc)
3) Find a small building society where you can discuss it with them upfront and get it pre-agreed (likely more expensive). 

Appreciate you saying its not a business and its just their friends, but they have gone to the trouble of registering for licenses etc. 

ronniehall

@ACG thanks its very frustrating.

1. The current owner won't have anymore caravans staying now as they only do it for a few months a year anyway and none of the caravans stay there long term (they have their own motorhome parked up by the house in a barn). So that will be removed along with all their belongings when they move out.
Do you know if it would incur a charge if the mortgage lender were to do a new valuation?

2. This is what we are going to do. We spoke to the mortgage lender yesterday and we're waiting for the correct department to call us back (in 2-3 days). We did already co firm we weren't going to be running a business from the premises.

3. We can't do this as we have a good fixed mortgage rate and it would be very expensive to get out of it early.

TimmyG1964

We purchased a site with a CL 6 years ago. We initially got a mortgage offer through Nationwide who described it as 'only a field' even though we planned use it as a CL, We ended up with a commercial loan elsewhere as there was also holiday accommodation involved.

CAMC licences are NOT transferable so you wouldn't be able to continue running it as a CL without going through the process with CAMC even if you wanted to. You should be able to get this in writing from CAMC (DM me if you want the direct email address)

I would also ask the owner to officially close the site with CAMC and get written confirmation of this to pass to your broker/lender.

Is the site registered for non-domestic rates?