Getting a mortgage on an ex local authority - help

[Puffykins]

So, we got an offer on our flat, super happy with it, moved forward, found somewhere else etc, etc, to point where we are ready to exchange on both properties EXCEPT, our buyer's mortgage wasn't approved....

Does anyone know of/ have experience of a lender who would give a mortgage on an ex-local authority flat (this one www.rightmove.co.uk/properties/84873916#/) with a 15% deposit. The hitch, apparently, is the "deck access", i.e. the fact that the front door is on a walkway in the sky.

I had never even heard of this being a problem before now - it certainly wasn't a problem for me when I bought this flat 12 years ago - I didn't even use a mortgage broker, I just asked RBS for a mortgage and they gave me one.

I suspect our buyer's mortgage broker is not good. It's taken two months to get here, I've produced I don't know how much paperwork etc, for the surveyor to prove that we don't have cladding (we don't) and then suddenly, this evening, this. And the broker said that he's asked some other lenders but they all said no too, because of the "deck access."

I just desperately want to save this if I can - otherwise we're back to square one, just poorer, on account of solicitors fees.

Also, because half the people on this thread www.mumsnet.com/Talk/property/4064440-please-can-someone-tell-me-why-my-flat-isn-t-selling said that this flat is basically unsellable and we're now so close and yet....

Thank you.

I loved your flat. Hope you get it sorted.

Thank you @Northernsoullover - me too!

I don't know (clicked in case it was an issue I did know about) and I just want to say how beautiful your flat is. All the books and the colour are just wonderful.

What has the estate agent said? If they have sold other flats in your block they must have some idea. They wint get their commission if the sale fails so ask them for help.

@KeyboardWorriers thank you!

@Pipandmum - the estate agent has told me that he doesn't know what to do. Which is obviously super helpful. He's suggested that our buyer find a new mortgage broker. I kink of feel that our estate agent should have been wise to this from the beginning - because isn't that kind of the estate agents job? Or perhaps I'm being unfair.
Anyway, the estate agent hasn't sold anything in our block before, in fact no flats in our block have come up in the past 5 years - there are comparables in the same street though. And there are, in this area, quite a lot of ex local authority flats with this sort of access that do definitely sell - it's the cheapest way to buy a flat in Notting Hill - but obviously you do need a mortgage. The estate agent did suggest that the mortgage broker that our buyer has been using is quite inexperienced....

Halifax used to lend on ex-LA flats. I don't know if they still do.

We had an ex local authority flat in London and we got our mortgage with Halifax. The only other 2 places that would offer us one were nationwide and bradford & bingley. This was about 10 years ago though!
We found it easier to go through a broker

Kensington Mortgages are generally the go-to for ex-LA flats and non-standard build, but they won’t be able to match the interest rates offered by high street lenders.

I think it’s a tricky time at the moment. I bought my ex-LA tower block flat in 2007 and was able to get a mortgage from either Halifax or NatWest. By the time I sold it last year they’d declined to lend on it and my buyer had to get a specialist broker involved.

@comtessedespair thank you so much that is super helpful. Do you by any chance know what your buyer's deposit was? Mine has 15% which I worry isn't enough. We aren't in a tower block but we do have access via a walkway in the sky.....

I don’t think their deposit was particularly large, but not sure what the exact LTV was, sorry.

I know that Halifax and NatWest both still value ex-LA flats on their individual merits, as opposed to Santander who I believe have a blanket policy of not lending on anything ex-LA with deck access or above five storeys. If your buyer gets a better broker they may have some luck accessing something through them.

Thank you again. Yes, I've got a feeling that our buyer has, through his broker, been trying to get a mortgage with Santander. Back at the beginning of December I suggested he find another lender because my cousin had an issue with Santander on a very similar property. Instead of which, we've spent weeks trying to prove that we don't need an ESW1 form, because we don't have cladding (as in, you literally can't get one if you don't have cladding, which we don't have. Also, we're not high rise.) This has been super reassuring though so thank you - I'm now hoping that I can give all this information to our estate agent tomorrow, who can then pass it on to our buyer and hopefully he won't just give up....

We sold our ex LA flat in 2010. Buyer had mortgage with Halifax. Prior to that my husband bought it with a mortgage from RBS with no problem.

Our estate agent told us the only issue was with flats in tower blocks (even more of a problem now with cladding) and also if they were constructed out of odd materials. We had a walkway exactly like yours.

I think it's because of the Lakenal house fire 11 years ago

I loved that ‘cluttered’ flat. It looked so warm and welcoming.

IMO it’s weird how people who are obsessed with decluttering then strew beds with cushions and throws that only have to be chucked off at night.
As for people who see books as ‘clutter’ - 😱! Philistines!

Are you sure you really want to sell it? I love your fabulous decor and location.

Thank you so much @Hopefulhen @GETTINGLIKEMYMOTHER - so, I was, initially, less keen on moving. But we've now found a house on West Hill in Hastings, I've fantasy decorated it in my head, and it has six bedrooms and a large garden in which we could build a studio, and sea views, all of which are looking very attractive right now as I am homeschooling two children at the same table at which I am also trying (and mostly failing) to work, while my husband is on a Zoom call. DS currently joins his assemblies while sitting in the bathroom as that is the only room that has a door that shuts. Also I thought that we were moving so I bought more art. And books 🙈🙈.

There was a thread in here about a week ago with someone trying to buy an ex local authority house and struggling with finding a mortgage, or something along those lines, I only skim read it but it might be worth trying to find it.

As you say there is lots of similar property locally is there a local Facebook page that you could ask on?

@Sprig1 I have! Thank you though. I've found the buyer another mortgage broker, and I've spoken to the surveyor who was unable to value our house (?) and asked for clarification. The surveyor was in our house for a matter of seconds, so i think it's possible that is the reason this has all fallen apart, as actually the lender is Halifax, not Santander. Fortunately the buyer is still keen so I'm keeping everything crossed that this is resolved.

This has been a really helpful thread thanks for posting it OP