Would you pull out for this?

(19 Posts)
CrapBag Thu 05-Jun-14 18:32:21

We are in the process of buying a BISF (steel) house, so non standard construction.

We have now been told that we need to have a report done by a structural engineer before they will agree a mortgage on it.

The homebuyers report said we should think carefully about a non standard construction house.

I have spoken to a structural engineer and he said in 5-10 years they may be unsaleable and more and more lenders are not willing to lend on them.

Its a private sale with someone we know. She has just lost her mum and we were nearing exchange.

Would you pull out or would you get the report done and take a chance?

justmuddlingalong Thu 05-Jun-14 18:35:46

I would pull out. While it's unfortunate that you were just about to exchange with someone you know and she's recently suffered a bereavement, the uncertainty would unsettle me. You may be left with a house you are unable to sell on.

schmalex Thu 05-Jun-14 18:36:56

I would pull out. No way would I buy a house that could be unsaleable in 5-10 years.

Coconutty Thu 05-Jun-14 18:38:14

Pull out of course.

Clargo55 Thu 05-Jun-14 18:40:01

If it is a 'forever' home then I would consider proceeding. If it is not, I would pull out.

AndIFeedEmGunpowder Thu 05-Jun-14 18:40:13

Would pull out. Blame it on the mortgage lender.

beaglesaresweet Thu 05-Jun-14 18:41:53

sorry OP, but why did you come so near exchange without finding out for sure about this from surveyors? You did know it was non-standard, why get the poor seller's hopes up, especially when she just lost her mum...And she's now spent some money on her solicitor too.
Everyone knows that these houses are a risk in terms of future saleability, but even if you weren't sure, you should have discussed with surveyor before proceeding with solicitors.

MrsJohnDeere Thu 05-Jun-14 18:41:53

Pull out

CrapBag Thu 05-Jun-14 18:45:54

Everyone knows do they? hmm

Actually no, I had no idea there was a problem with selling it on. I had no idea this was an issue. I have relatives in one of these houses and they think its great and there is no problems with them because they are so solidly built and there is little chance of them rusting. Obviously I am being told completely different by the surveyor and the structural engineer.

I have literally found out today, after speaking to the structural engineer, how much of an issue it is.

It would be a home for the foreseeable future, but one day we would look to downsize. Probably 20 or so years time, which looks like we wouldn't be able to sell it then.

CrapBag Thu 05-Jun-14 18:48:24

Plus the structural engineer said it should be the vendor that gets the structural report done as she will have this issue with anyone that tries to buy it, any mortgage lender is going to want this done and if a builder comes in to open the walls up, arranged and paid for by us, then something happens, we can be sued. If the report showed something that would make us pull out anyway, we have paid out for nothing and she will still need to get it done.

Not sure how she is going to take that.

Kitsmummy Thu 05-Jun-14 19:40:59

As it's someone you know I would pull out, say it's on the advice of the bank, but I would offer (insist on) to pay her legal fees so far

Pinkje Thu 05-Jun-14 19:58:53

Yes I would pull out too.

Wasn't there another house you fancied too?

CrapBag Thu 05-Jun-14 20:02:18

There was, and I have to drive past it every day, I love it and it sold. sad

ZakuroFujiwara Thu 05-Jun-14 20:03:05

I would pull out.

Someone buying it from you in the future will get told what you are being told now and you will find it hard to sell. You never know when/ why you might need to sell so I would never buy something harder than usual to sell on just in case.

GnomeDePlume Thu 05-Jun-14 20:13:03

Approaching this from a different perspective. Is this a detached house? If so, how does the house price compare to the land value? Is it possible that in 20 years time this could actually be a rather nice building plot with a good value of itself?

CrapBag Thu 05-Jun-14 20:23:20

No its a semi detached.

Madmog Fri 06-Jun-14 10:37:10

You do need to know that the steel frame hasn't corroded. A structural engineer can test the frame by making small holes in the walls. Obviously this needs to be done with the vendors agreement and for that reason it would almost be better if the vendor commissioned the survey for any potential buyer to see.

We had problems getting a mortgage on a steel framed property many years ago. We did eventually get one but pulled out for other reasons. The property and the other 30 odd in the road do sell but can take longer and at a reduced price, but people do buy them - most local one took six months (places around here are taking 3-6 weeks) but funnily enough they suddenly had three offers in one week. Just be aware that if ever you wanted to extend into the attic, this will cost more as it's harder to cut through the steel frame and support it.

Is there anything else around which could be suitable. If so, look and review things then.

CrapBag Fri 06-Jun-14 15:20:55

Well we have been round and round in circles with this.

We effectively decided to pull out and I did message the vendor but have not said anything to Nationwide or solicitors yet.

I phoned London and Country and we still can't borrow a significant amount, even with another lender.

So our options now are:-

1) Go to another shared ownership house (we are in one now). We can buy the share outright (on a brand new development near where we are now and near the kids school) and pay the rent. They are valued very high and we can't borrow the full amount to buy the rest to own it outright, only another share. They look like lovely houses but we would be tied to rent for the foreseeable future, unless the mortgage rules eventually relaxed and we could borrow more, but then it would be for less time due to the time lapse in between.

2) Buy a house for less than we thought we'd be able to, pay a large deposit and take out as much mortgage as we can but this leaves us with few houses to buy. It will be in a shitty area, house will be small and possibly need some doing up.

3) Continue to buy the steel house. Mortgage was going to be very low, we were planning on paying it off early. In 5 years time, see what the market is doing and if it looks like its slowing down, sell the house (I honestly don't think it would be unsaleable in that short a time time) and buy somewhere else.

The road its in has had about 3 houses for sale recently and they have been snapped up. Probably due to good size, big gardens and affordability and its in an ok area. They are also worth far more than what we are (possibly) paying. The one we were buying needs doing up but we have budgeted for that and if they were still selling at what they are now (done up) we would make some profit on it. If not a profit then we would likely get our money back.

So now more of a dilemma.

WWYD now?

CrapBag Fri 06-Jun-14 15:22:25

I think if we could get a bigger mortgage (we were looking to borrow 60-70k but we can't) it would be easy and there would be other houses that would be suitable in semi decent areas.

As our situation is, our options are very limited right now.

And we can't stay here and wait. We need more space and the kids need a room of their own, plus we have sold.

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