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Hi,
My fiancé and I have found the flat we would like to buy just outside of Putney in London. Unfortunately the flat is situated above a commercial property (a chartered surveyor).Additionally, beside the surveyor on the same strip is a small pet shop followed by a Nepalese restaurant both of which look reputable.
Unfortunately, Nationwide rejected our application after the valuation survey was carried out. The underwriter has denied the application due to the following question in the survey:
9. Other matters that may materially affect marketability:
Is the property readily saleable at our about the valuation figure? "No."
If no provide details: "The property is located above commercial premises in a parade including a restaurant, pet shop and small pet boarding adjacent causing potential problems with animals, anti - social hours, ventilation and access."
We are both gutted as A. we like the property and B. feel like mugs being first time buys we didn't realise this was going to be an issue and have now lost our application fee. My question to you is, should we continue trying lenders to find one that will provide a mortgage on the property or should we run away and start the search over?
From speaking with friends the issues with buying (assuming we can finance) are around difficulties when it comes to remortgaging, selling, possibility of the surveyor below being changed into a fish and chip shops etc. Is it worth the risk or should we high tail it out of here.
Any and all advice appreciated.
I have no direct experience but I'g guess this type of response might haunt any future mortgage application, with future buyer facing the same scenario (and likely being put off).
Any mortgages you can apply for with no fee?
if I was going to live in a flat above a shop, I'd rent. That way, if it changed use into say a fish'n'chip shop, I could move out fairly quickly.
much as I like fish n chips, I wouldn't want everything in my flat to stink of fish n chips 24/7
Is the property readily saleable at our about the valuation figure? "No."
If that should read "at or above" then it appears to be overpriced.
For your own sake the businesses may become something you don't want to live above, let alone future buyers.
Speak to the vendor and put in a lower offer based on rejected survey?
We had similar problems in the past. We bought a flat above commercial premises (a solicitor and below that a bakery). A bigger issue was that there was a pub at the end of the street too (If I have to hear "this sex is on fire" out of tune one more time...). Also my wife is self-employed which makes things harder again.
There were only a few mortgage companies that would lend with those requirements. We went for RBS*, the final option would've been Northern Rock* if no one else would lend.
Your mortgage adviser should know which lenders are likely to lend above a commercial property.
[i]* This was 2007, things have changed a bit since then.[/i]
Get advice - a independent mortgage broker will find you a lender that will accept this type of property. You may struggle with high-street lenders.
We rented a workshop next to a chinese takeaway and 2 indian takeaways, every night about 17.00 the extractors fans started and the smell of curry and other food smells permeated the area, so time to go home.
The smell also permeated the buildings locally, and pissed meal eaters at midnight shoutin gand fighting made sure most properties locally where rented as opposed to being bought.
I work for a big mortgage lender and I know that nationwide is certainly one of the major players. We have the same policy about flats above commercial properties so if I was you walk away. You're unlikely to get a mortgage on it and even if you do any future buyer would have the same issue. Walk away and don't waste any more time on it. 🙂
I'm assuming you were only happy to live above commercial premises because everywhere else in London you'd thought about living in is out of your budget... well there's a reason why this flat is cheaper than all the others - it's because no-one really wants to live there, which will make it a nightmare to sell. Nationwide have effectively told you this already...
London is vastly overpriced right now and there's plenty of signs it's beginning to correct if you look at Rightmove using Property Bee (on Mozilla) - plenty of asking prices being dropped. The fact that lenders are tightening their criteria as you've found out shows the cheap money taps are being turned off - that's already been slowing up London prices rises since summer last year.
Most people I know who'd like to buy in London are moving out, having given up in despair at ever being able to afford a place... so it's hard to see where any further upwards momentum is going to come from.
In your position I would:
a: look away from Putney -there's plenty of cheaper areas of London.
b: wait until we know who's governing the UK later this year.
Buying an undesirable property in an overheated market is unlikely to leave you feeling very happy...
In your position I would:
a: look away from Putney -there's plenty of cheaper areas of London.
The OP is already doing this. The flat is "just outside Putney".
I know you can be "just outside Edale" without being anywhere else, but "just outside Putney" must mean "quite a long way inside somewhere less prestigious than Putney, the name of which we would rather not speak".
"quite a long way inside somewhere less prestigious than Putney, the name of which we would rather not speak"
It always amuses me that people in London so often refuse to admit where they actually live 🙂
IMO the mortgage co. is doing you a favour.
I'd also avoid one-bed flats too as in previous price-corrections these are also difficult to sell
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"Burn it down and weird dinosaurs" are just across the road from me 🙂
You know London property has people with more money than sense running around when you hear rumours that some Chinese 'investor' wants to rebuild Crystal Palace...