House Unmortgageable

[Housewoes23]

Has this ever happened to anyone else? Is there anything that can be done?

Searches paid for etc solicitor instructed offer accepted, mortgage company has valued it at £0.
I'm so disappointed and frustrated. They have said It's because It's near a paint factory( it is, but the back of it, no deliveries or activities or noise affecting the house at all), near a 24 hour garage, and on a main road.
Very low crime in the area despite the garage anyway. And there are tonnes of houses on main roads!

Also, does this go against full disclosure rules? Surely vendor/agent must have known. Sales have fallen through previously, I've been told.

It’s not about there being deliveries or high activity or a main road, it will be because of the hazardous chemicals used in the paint manufacture. I wouldn’t want to live next to one either

This happened to a friend. No there is nothing you can do. Walk away.

does this go against full disclosure rules? Surely vendor/agent must have known.

I don't think they have to disclose that it's near a paint factory, surely it's on you to do your due diligence on the area?

Did you ask why previous sales fell through? I'm not sure whether they have to tell the truth though, tbh.

It sounds like there are some major risks to health

herroyal it isn't next to it. It's apparently across the road, down another road and on an industrial estate. I say apparently, I hadn't a clue it was there, never seen it.

theproblem I didn't mean that, sorry. I meant disclose to any interested party that the house is unmortgageable, not about what it's near.

Surely that would make every house in the immediate area unmortgageable?

onering good point. :(

We were looking at house next to a petrol station and it was cash only because of this. Something to do with the class of land being the same as a scrap yard. But the seller had a mortgage to pay off 🤷🏼‍♀️

Have you considered renegotiating your offer against the new price? Offer them a fiver.

Op,that’s unusual for it to be valued at zero because It’s near a paint factory near a 24 hour garage and on a main road. Was that the sole reason it was valued at zero?

I had this with a property I was selling.

It was on a private road, and the buyers mortgage provider was Santander.

Santander came back and valued the property at £0 because of a few things. Said they would not lend on it at all.

Funny thing was, my mortgage, on said property.....was with Santander. I tried explaining to them THAT THEY ALREADY OWNED THE FUCKING PROPERTY but computer still said no

Theres no rhyme nor reason sometimes. You could always try another lender.

Try using an independent mortgage broker that looks at the whole of the market. They'll probably be able to tell you if all lenders would take the same approach.

Have you used a whole of market mortgage broker? If not, it could be worth doing so now and seeing if another lender has a different view. Which lender has valued it at £0?

On the question of disclosure, the EAs always, always caveat everything and state you have to satisfy yourself as to the condition, yadda, yadda so you have to do your own due diligence.

Could you try going to a different bank? When I first bought my flat, the bank I had a mortgage in principle with came and did their own survey, said the property wasn't worth what the seller wanted and declined to loan me the amount required. I went to a different bank, who approved the mortgage without any issues.

Try another bank if you like the place (and lower your offer)

I would walk away. Even if you manage to get a mortgage this will all come up again if you ever want to move.

I suppose you have two potential major explosion risks nearby , although I can't remember the last time a petrol station went up in the UK as they have very tight regulations and safety features. Paint factories are a marginally more common event , three in the last 18 years that I am aware of.

I would walk away, even if you find another lender, you'll have the same problems when you come to sell. It's certainly not worth whatever you had agreed to pay...

Thanks for the replies all, I wrote in a rush before setting off for work, I'll read thru properly shortly. But yes, of the paint factory I had no idea it was even there and the entrance to the industrial estate isn't off the area the house is in, just the back of the factory isn't so far from the house. My Sister who has lived nearish it for a while told me this after I told her what the lender said.

passthemustard interesting. I'm more annoyed that I didn't know. I've considered borrowing the cash, decided against it though.
Lender was virgin. Yes I suppose so but how could I possibly know it wasn't mortgageable? Could I have? I knew about the garage (thought it might be quite handy ) and main road obviously but not that it was strictly not lendable-on?

bluntness (I'm assuming you're not being sarcastic! yes, nothing else said.

notyourholiday madness! Didn't they realise how little sense that makes...

carter wowfudge I am using an independent broker. He's said all lenders will likely say the same, they all go off the same advisories. He'll have a look for me but is saying probably forget it.

Sorry second part of the first paragraph was in response to wowfudge

itwasntme I'd probably just rent it out rather than sell anyway

It's only a small place, I'm single with a dog.. under £100k, I've got a fairly decent public sector job.. It just seems odd and I'm annoyed because I think the vendor knew about this. I also think 'orange rhymes with sticks* knew they were advertising a property that wasn't viable for a mortgage.

My broker was as surprised about this situation as I was. :(

You need to speak to your financial advisor or mortgage broker . As there are many specialist lenders out there who can consider a property with an issue such as yours , good luck , hope you find a solution

Thank you lantern :)