Unusual Build mortgage

PigeonEgg2

Hello, myself and my husband fell in love with a converted chapel that had been on the market a while. We were a day late! An offer had just been accepted. I reached out to the owners and said if anything changes contact us. The sellers seem like good people and we aren’t about to offer a number when someone  has started the process. We went to see it to be certain we wanted to be back up buyers and we do. So it comes with some rules about not changing the outside and although there is a cemetery surrounding it’s not the owners responsibility the building is about 150 years old. My question is we learned from the sellers the buyers are young how young I don’t know. As I understand it unless you are cash buyers this sort of property could pose as problem to get a mortgage for am I right?
we aren’t in a rush to find anywhere (cash buyers) downsizing. Just wondered if it’s worth half looking for another place until it’s gone through? 

Are dropouts fairly common with character properties like this? 

Thank you for reading have a great day 

user1977

You say "unusual build" but does it actually have unusual construction methods? If it's listed then that might rule out some lenders but I wouldn't have thought it a particular problem from a mortgageability perspective.

PigeonEgg2

It’s a stone not brick construction. Not grade listed. Getting conflicting information about if this sort of property falls in to the unusual criteria 

eddddy

PigeonEgg2 said:

It’s a stone not brick construction. Not grade listed. Getting conflicting information about if this sort of property falls in to the unusual criteria 

Stone walls are normally considered to be standard construction by Mortgage Lenders.

For example, Nationwide include "Walls: Solid stone (e.g. limestone, granite)" in their definition of "Traditional Construction (Normal lending terms apply)"
See: https://www.nationwide-intermediary.co.uk/lending-criteria/property-and-constructions


If the building isn't listed, I guess the "rules" you mention are "covenants". Unless they are especially onerous, that probably won't be an issue for mortgage lenders.


In simple terms, mortgage lenders' concerns are "If the borrower doesn't pay their mortgage and we have to repossess, will the property be easy to sell to get our money back?".

If the converted chapel is a desirable home which would resell easily, a mortgage lender is likely to be fine with it.


But obviously, there are other things that could cause the buyers to drop out - for example, if the mortgage lender uncovers problems with the buyer's financial situation, or if the chain below the buyers has problems.

user1977

PigeonEgg2 said:

Getting conflicting information about if this sort of property falls in to the unusual criteria 

Where are you getting your information from?

I think the most likely issue (if any) is that a valuation might be conservative if there is a lack of similar properties to compare it to.

PigeonEgg2

user1977 said:

PigeonEgg2 said:

Getting conflicting information about if this sort of property falls in to the unusual criteria 

Where are you getting your information from?

I think the most likely issue (if any) is that a valuation might be conservative if there is a lack of similar properties to compare it to.

Ar least a couple of mortgage lenders appear to be wary of certain features for instance location being in or near a cemetery (as it is) or people have been turned down for things like proximity to a takeaway. A friend of mine got turned down for a very unusual property. It was old old bunker  like you said it was hard to value too

user1977

PigeonEgg2 said:

user1977 said:

PigeonEgg2 said:

Getting conflicting information about if this sort of property falls in to the unusual criteria 

Where are you getting your information from?

I think the most likely issue (if any) is that a valuation might be conservative if there is a lack of similar properties to compare it to.

Ar least a couple of mortgage lenders appear to be wary of certain features for instance location being in or near a cemetery (as it is) or people have been turned down for things like proximity to a takeaway. A friend of mine got turned down for a very unusual property. It was old old bunker  like you said it was hard to value too

Ok, but it isn't next to a takeaway (unless that's a new problem you haven't mentioned!) and converted churches aren't all that unusual.

PigeonEgg2

user1977 said:

PigeonEgg2 said:

user1977 said:

PigeonEgg2 said:

Getting conflicting information about if this sort of property falls in to the unusual criteria 

Where are you getting your information from?

I think the most likely issue (if any) is that a valuation might be conservative if there is a lack of similar properties to compare it to.

Ar least a couple of mortgage lenders appear to be wary of certain features for instance location being in or near a cemetery (as it is) or people have been turned down for things like proximity to a takeaway. A friend of mine got turned down for a very unusual property. It was old old bunker  like you said it was hard to value too

Ok, but it isn't next to a takeaway (unless that's a new problem you haven't mentioned!) and converted churches aren't all that unusual.

user1977 said:

PigeonEgg2 said:

user1977 said:

PigeonEgg2 said:

Getting conflicting information about if this sort of property falls in to the unusual criteria 

Where are you getting your information from?

I think the most likely issue (if any) is that a valuation might be conservative if there is a lack of similar properties to compare it to.

Ar least a couple of mortgage lenders appear to be wary of certain features for instance location being in or near a cemetery (as it is) or people have been turned down for things like proximity to a takeaway. A friend of mine got turned down for a very unusual property. It was old old bunker  like you said it was hard to value too

Ok, but it isn't next to a takeaway (unless that's a new problem you haven't mentioned!) and converted churches aren't all that unusual.

user1977 said:

PigeonEgg2 said:

user1977 said:

PigeonEgg2 said:

Getting conflicting information about if this sort of property falls in to the unusual criteria 

Where are you getting your information from?

I think the most likely issue (if any) is that a valuation might be conservative if there is a lack of similar properties to compare it to.

Ar least a couple of mortgage lenders appear to be wary of certain features for instance location being in or near a cemetery (as it is) or people have been turned down for things like proximity to a takeaway. A friend of mine got turned down for a very unusual property. It was old old bunker  like you said it was hard to value too

Ok, but it isn't next to a takeaway (unless that's a new problem you haven't mentioned!) and converted churches aren't all that unusual.

No to the takeaway but as said it’s in a graveyard as I understand it that could cause issues.

Albermarle

Lots of properties are adjacent to a cemetery. It is not really unusual.

Of course it could put some people off buying it, but then most properties have an issue of some kind. On a busy road, railway line at the end of the garden, sewage treatment works nearby, noisy industry etc 

eddddy

PigeonEgg2 said:

....but as said it’s in a graveyard as I understand it that could cause issues.

FWIW, I've heard people mention concerns about subsidence and contaminated land near graveyards.


The 150 year old chapel probably has very shallow foundations - and perhaps there are old (and newer) 6ft deep graves nearby and/or underground chambers.

If the graves are close together, and maybe weren't re-filled very well - there's a risk of ground movement, which could cause subsidence of the chapel. Similarly, if old underground chambers collapse.

If there are more recent graves, there's the risk that ground water could be contaminated, and spread under the chapel's garden.


But if the buyer pulls out because of a subsidence risk or contaminated land risk - maybe you don't want to buy the chapel either.

PigeonEgg2

eddddy said:

PigeonEgg2 said:

....but as said it’s in a graveyard as I understand it that could cause issues.

FWIW, I've heard people mention concerns about subsidence and contaminated land near graveyards.


The 150 year old chapel probably has very shallow foundations - and perhaps there are old (and newer) 6ft deep graves nearby and/or underground chambers.

If the graves are close together, and maybe weren't re-filled very well - there's a risk of ground movement, which could cause subsidence of the chapel. Similarly, if old underground chambers collapse.

If there are more recent graves, there's the risk that ground water could be contaminated, and spread under the chapel's garden.


But if the buyer pulls out because of a subsidence risk or contaminated land risk - maybe you don't want to buy the chapel either.

Thats such a good point! Thank you so much for taking the time to comment. Certainly something I’m looking into it further as a chapel conversion has been my ideal. I need to look into resale and structural issues to look out for.