Mortgage...
Turbo Mini Forums

Just had a call from the bank to say our mortgage application has been approved for our first house

But... it's a full renovation jobbie, and have been told that the valuation person may dismiss it as it's not "habitable", which would be a right bummer as we've been waiting for this house to go on the market for years!

Nervous now, anyone got any tips on how to sweet talk the dude who will turn up to value it for the bank?! My whole family is in the building, fabricating, fitting, making etc trades, so we are more than capable of doing any work, but I know that means shit to the bank staff...

www.topcatcustom.co.uk

No idea mate, but best of luck!

your in the hands of the valuer, from memory you cannot have any contact with them, you only know roughly when they go. However I am confused that the bank has approved your morg before the valuation, most strange. I would reconfirm with your solicitor or adviser. best of luck.

Edited by philc on 17th Sep, 2012.

My first house was the same , if he is from the bank then he will only be interested in making sure what you have borrowed matches the house value anyway.

Edited by wolfie on 17th Sep, 2012.

You wont be able to sway the person who values it, been there, tried it and failed

On 5th Oct, 2014 Shauna said:
What that's crazy, you go commando hahaha! How heavy is your helmet ?

i hate banks as soon as my loans paid il be closing my account ,good luck mate youl need it

give em hell

All they are interested in is if they had to reposses the house they'd be able to easily get there money back. Hence the reason, the more depsoit you put down the less the risk to them.

As long as you're not paying over the odds for it, you should be fine.

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www.fusionfabs.co.uk



1/4mile in 13.2sec @ 111 terminal on 15psi

They may put a retainer on it which means they will not give you the full amount until you get some jobs done that make it habitable again.

Craig

my mini van http://www.turbominis.co.uk/forums/index.php?p=vt&tid=448248

There are a number of factors that the surveyor will consider, however the LTV % will likely be the biggest consideration.

Hope it all works out for you

You wont get a mortgage if there is no usable bathroom or kitchen fitted but i take it that its not that bad?

Patina=old and knackered and won't clean up

Yep, no kitchen. Hence why we are paying less for a house that needs work!! Can't stand the banks, thee were 4 people queuing to buy it the morning it went on the market so it is obviously easy to sell!

www.topcatcustom.co.uk

my first house had sod all in the way of kitchen or usable bathroom and i had no issues getting a mortgage hovever things are different these days

Yeah the bank asked if it has a kitchen etc so it can be classed as "habitable", but even if it did nobody would want to live there, as the windows are all rotten etc! I could stick a sink and 2ft of worktop in with a microwave to make a kitchen!

Just find it gutting that there is no trust etc there any more, we can't wait to get cracking on the property but all the banks care about is getting money money money!!!

www.topcatcustom.co.uk

everyone is simply looking after their own interest these days; they just want to know they will be able to recover the cash hence why a low LTV loan will be easier to get approved

I had the same problem as you with my first house

The valuer is working on behalf of the mortgage company, so will value the house and report back any failings that the house has
The valuer will then give a rough estimate on how much those failings would cost to do
Bear in mind that the valuer will include everything that he finds, from sticking windows to squeaky floorboards, but most of the incidental stuff can be ignored
Most valuers are not structural engineers, so you may be able to argue that somethings on the list does not need to be there

If you can get separate quotes for the major work that has been listed at a considerably reduced cost to what the valuer has stated, then the mortgage company will probably allow the mortgage to go through

My house was on the market for £27000 (a few years ago now), and the valuer said that it needed £6000 of work done
I got quotes for the work totaling £1500, and the mortgage company agreed to release the money
On my list were all manner of defects from no damp proof course to over grown garden to cracked window pane

If the amount of work needed is very high, then the mortgage company might ask you to stump some cash up front

If however, the house needs major structural work like a new roof, they may refuse it completely, or expect you to have the cash to pay for it yourself

EDIT - just read your original post properly
I assume what you meant to say was that the bank has provisionally approved the mortgage depending the outcome of the valuation

Forgot to say that if your mortgage value plus the cost of any work is less than what the valuer thinks the house is worth, then it may go through OK anyway

Edited by ntm1275 on 18th Sep, 2012.

Thanks, yes approved (and we are signing on Friday) pending an approved valuation. I've had a structural engineer and builder (developer) out already who have seen and quoted for the work that needs doing.

We have a decent deposit so just got to keep fingers crossed I guess!

www.topcatcustom.co.uk

Decent deposit is the key we have not long moved and were able to put a 73% deposit down, surprisingly it was still not that easy to get the right mortgage but only due to lenders not having many products.

Update- Just completed!!!

All went well, but cant believe how long it took! They classed it as habitable because it had all the services, a boiler, drainage etc even though the kitchen units had all been ripped out :)

www.topcatcustom.co.uk

cool keep us updated with the renovation

Good shout

Glad it worked out for you mate

does it have a garage?

There is a concrete base where the garage sat until it was pulled down recently- so one may well be going up again!

I'm a bit gutted that work on the mini is inevitably going to slow down though... and the 3 other cars in the queue.....

www.topcatcustom.co.uk

get a second hand prefab for the short term

glad to hear it has all worked out for you