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House classed as defective what to do
splreece
Posts: 37 Forumite
Hi all..
I bought a house that I plan to refurb and rent out or resell 3yrs ago. Mortgage with Halifax and went through no problem. Just had a valuer come in and tell me the house is classed as defective so should never have been sold with mortgage and the value he gave is less than my outstanding mortgage as its cash buyer only.
Neither the mortgage comp, solicitors or local agents mentioned any of this as I would have pulled out (I pulled out of a house previously for structural issues found in survey).
Any help or ideas about what to do now would help as I am considering just bankrupting myself as I've spent load already trying to refurb the house and to finish it I would be around 30k in negative equity (assuming it sells at valuation price)... Any thoughts.
I bought a house that I plan to refurb and rent out or resell 3yrs ago. Mortgage with Halifax and went through no problem. Just had a valuer come in and tell me the house is classed as defective so should never have been sold with mortgage and the value he gave is less than my outstanding mortgage as its cash buyer only.
Neither the mortgage comp, solicitors or local agents mentioned any of this as I would have pulled out (I pulled out of a house previously for structural issues found in survey).
Any help or ideas about what to do now would help as I am considering just bankrupting myself as I've spent load already trying to refurb the house and to finish it I would be around 30k in negative equity (assuming it sells at valuation price)... Any thoughts.
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In what way is your house 'defective'?1
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Define "defective"...0
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Ill be honest, my first thought is, what have you done to it?2
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What did the valuer give you that led you to believe their opinion over the surveyor you got out when you bought the house?2
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Did any of them know about whatever the "defect" is? Did you get your own survey when you bought? Are you sure the latest surveyor (if that's what you mean by "valuer") is correct?splreece said:Neither the mortgage comp, solicitors or local agents mentioned any of this as I would have pulled out (I pulled out of a house previously for structural issues found in survey).1 -
Why is it defective? Was the valuer from an EA? Unless you’ve changed something major I’d be on the side of your initial surveyor until such a time as you confirm this opinion.1
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What have you done to the house?I don't quite understand what has happened. Are you saying that you own the house with a mortgage, that you have spent £30k on it and are now trying to remortgage?In what way is it 'defective'. I've dealt with plenty of unmortgageable properties and that isn't a word that crops up. There is always a reason.Without any further information, I'm going to have a guess. With a large renovation project, you can often render a house unmortgageable despite having spent money on it. When you start stripping out kitchens, bathrooms, boilers etc. you're reducing the value, despite your attempt to improve it.It's why you usually need money in the bank or specialist funding for major renovations.Everything that is supposed to be in heaven is already here on earth.
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The only 'defective' I can think of is the one relating to non-standard construction property, where there's a list of types lenders won't touch because of their short projected lifespan.
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the estate agent said the entire estate has been deemed as 'defective' as its a 70s council estate. so he said theyve tried to get mortgages on it but none have been successful due to that respone from valuers.TadleyBaggie said:Define "defective"...
When i mentioned mine went straight through he said it maybe because the valuer just did a desk review rather than a real onsite review.
the house is only 50k so isn't an expensive property.. but if mort comp refuse to mort it then i wonder how i got mine, plus is there recourse against the surveyor?1
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