Mortgage on house currently being rennovated

sacha1dog
sacha1dog Posts: 72 Forumite
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in Mortgages & endowments
Our home is currently having a large extension which includes a whole new kitchen. As such, we have moved out for a few months whilst the building work continues. There is no kitchen today.

The mortgage on our home times out in November, and I have applied with HSBC for a new mortgage, plus some change to pay for a part of the extension and kitchen.

It has only just dawned on that this may be an issue having read about banks being reluctant to lend against "uninhabitable" homes.

The LTV is low at around 25%. Is the state of the house a deal breaker, or would they impose some conditions or something similar?

Looking for a bit of advice please.
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Comments

  • ACG
    ACG Posts: 23,714 Forumite
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    If they do a valuation on the property I doubt they will lend.
    It is not to do with the LTV, they have criteria which needs to be met - that means the applicant and the property.

    If they do a desktop valuation, then you will probably get lucky.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • sacha1dog
    sacha1dog Posts: 72 Forumite
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    not even with some form of retention?
  • ACG
    ACG Posts: 23,714 Forumite
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    I would be surprised due to what the issue is.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreet
    kingstreet Posts: 38,740 Forumite
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    sacha1dog wrote: »
    not even with some form of retention?
    Yes. 100% retention and nil valuation until the property meets basic criteria.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • sacha1dog
    sacha1dog Posts: 72 Forumite
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    kingstreet wrote: »
    Yes. 100% retention and nil valuation until the property meets basic criteria.

    “Thanks” for a worthless reply.
  • kingstreet
    kingstreet Posts: 38,740 Forumite
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    Worthless? Why?

    The typical surveyor reaction to finding an unmortgageable property would be a 100% retention and nil valuation until it's finished. We had a case recently where a structural engineer's report was required before the surveyor would consider valuing the property.

    Don't shoot the messenger just because you don't like the message. Did you actually seek professional advice before you embarked on your plan?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    sacha1dog wrote: »
    “Thanks” for a worthless reply.

    If you don't like the free advice provided here, please ask at the exit for a refund.
  • sacha1dog
    sacha1dog Posts: 72 Forumite
    First Anniversary First Post Combo Breaker
    The surveyor said, to my face at least, that he would value the property based on market value less his estimate of the cost to get the property habitable.

    Worse case scenario we just have to wait for 4 weeks until it fits in more with the lenders rules.
  • Beetroot24
    Beetroot24 Posts: 36 Forumite
    Do you have the option of putting in a temporary kitchen, just to get you past the valuation stage??


    We are in the middle of an extension, and we're using a temporary freestanding kitchen until everything is finished. Our hob isn't connected (we have a gas feed in place, but no electrics in the extension bit), but we have a double oven, a sink that is plumbed in, where it used to be in the "old kitchen" (will be dining area).


    We have the Ikea Varde, which has been discontinued but always pops up on online auctions, so you could sell it back on after you've used it for the valuation. Or could you buy a couple of cheap/second hand/ex display units, a cheap sink and an oven??
  • sacha1dog
    sacha1dog Posts: 72 Forumite
    First Anniversary First Post Combo Breaker
    There is a kitchen sink and cupboard underneath. No other units.
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