Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • sacha1dog
    • By sacha1dog 14th Sep 18, 2:49 PM
    • 67Posts
    • 10Thanks
    sacha1dog
    Mortgage on house currently being rennovated
    • #1
    • 14th Sep 18, 2:49 PM
    Mortgage on house currently being rennovated 14th Sep 18 at 2:49 PM
    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.
Page 1
    • ACG
    • By ACG 14th Sep 18, 3:39 PM
    • 17,800 Posts
    • 9,587 Thanks
    ACG
    • #2
    • 14th Sep 18, 3:39 PM
    • #2
    • 14th Sep 18, 3:39 PM
    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
    • By sacha1dog 14th Sep 18, 4:00 PM
    • 67 Posts
    • 10 Thanks
    sacha1dog
    • #3
    • 14th Sep 18, 4:00 PM
    • #3
    • 14th Sep 18, 4:00 PM
    not even with some form of retention?
    • ACG
    • By ACG 14th Sep 18, 4:13 PM
    • 17,800 Posts
    • 9,587 Thanks
    ACG
    • #4
    • 14th Sep 18, 4:13 PM
    • #4
    • 14th Sep 18, 4:13 PM
    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
    • By kingstreet 14th Sep 18, 4:19 PM
    • 34,334 Posts
    • 18,650 Thanks
    kingstreet
    • #5
    • 14th Sep 18, 4:19 PM
    • #5
    • 14th Sep 18, 4:19 PM
    not even with some form of retention?
    Originally posted by sacha1dog
    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
    • By sacha1dog 14th Sep 18, 10:52 PM
    • 67 Posts
    • 10 Thanks
    sacha1dog
    • #6
    • 14th Sep 18, 10:52 PM
    • #6
    • 14th Sep 18, 10:52 PM
    Yes. 100% retention and nil valuation until the property meets basic criteria.
    Originally posted by kingstreet
    “Thanks” for a worthless reply.
    • kingstreet
    • By kingstreet 15th Sep 18, 8:16 AM
    • 34,334 Posts
    • 18,650 Thanks
    kingstreet
    • #7
    • 15th Sep 18, 8:16 AM
    • #7
    • 15th Sep 18, 8:16 AM
    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
    • By davidmcn 15th Sep 18, 9:15 AM
    • 9,053 Posts
    • 9,640 Thanks
    davidmcn
    • #8
    • 15th Sep 18, 9:15 AM
    • #8
    • 15th Sep 18, 9:15 AM
    “Thanks” for a worthless reply.
    Originally posted by sacha1dog
    If you don't like the free advice provided here, please ask at the exit for a refund.
    • sacha1dog
    • By sacha1dog 15th Sep 18, 9:19 AM
    • 67 Posts
    • 10 Thanks
    sacha1dog
    • #9
    • 15th Sep 18, 9:19 AM
    • #9
    • 15th Sep 18, 9:19 AM
    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
    • By Beetroot24 15th Sep 18, 9:24 AM
    • 35 Posts
    • 31 Thanks
    Beetroot24
    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
    • By sacha1dog 15th Sep 18, 10:23 AM
    • 67 Posts
    • 10 Thanks
    sacha1dog
    There is a kitchen sink and cupboard underneath. No other units.
    • sacha1dog
    • By sacha1dog 5th Oct 18, 10:35 AM
    • 67 Posts
    • 10 Thanks
    sacha1dog
    I would be surprised due to what the issue is.
    Originally posted by ACG
    Just coming back to close the topic. It took some time, but HSBC have agreed to the mortgage. There is still no kitchen, apart from a sink with a cupboard beneath, and no back wall to the house, as documented in the valuation report.

    They say that whilst the section of the valuation report that refers to ongoing works doesn't fit exactly within their terms and normal lending policy, the LTV is low and they view the risk as low.
    • ACG
    • By ACG 5th Oct 18, 11:28 AM
    • 17,800 Posts
    • 9,587 Thanks
    ACG
    Just coming back to close the topic. It took some time, but HSBC have agreed to the mortgage. There is still no kitchen, apart from a sink with a cupboard beneath, and no back wall to the house, as documented in the valuation report.

    They say that whilst the section of the valuation report that refers to ongoing works doesn't fit exactly within their terms and normal lending policy, the LTV is low and they view the risk as low.
    Originally posted by sacha1dog
    I would say you have been pretty lucky there. As a broker, I would not have submitted the case for a normal Mortgage.

    The deciding factor may have been that there was a sink. Fair play though, every day is a school day but knowing what I know, I would still not risk time on an application for a house with no real kitchen.
    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
    • By sacha1dog 5th Oct 18, 11:33 AM
    • 67 Posts
    • 10 Thanks
    sacha1dog
    I would say you have been pretty lucky there. As a broker, I would not have submitted the case for a normal Mortgage.

    The deciding factor may have been that there was a sink. Fair play though, every day is a school day but knowing what I know, I would still not risk time on an application for a house with no real kitchen.
    Originally posted by ACG
    Knowing what I know now, I wouldn't have bothered applying until the house was more completed. Yes, I have been lucky.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

132Posts Today

1,374Users online

Martin's Twitter
  • RT @laurawithers84: @MartinSLewis Our school is going to use your book for our new finance fortnight for year 8 students. We thought we wou?

  • RT @katiejane13uk: ????????IMPORTANT - CALLING ALL LEASEHOLDERS TO COMPLETE???????? @mhclg Leasehold Reform Consultation closes this month. This is the?

  • Just sent a text about postgrad loans. My Swype text auto-corrected it to pothead loans. Does it know something I don't?

  • Follow Martin