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Original poster

Dream house unmortgagable

21 replies

NotMyselfWithoutCoffee · 08/04/2022 10:46

Property we found about 5 or 6 weeks ago has been deemed unmortgagable due to too many commercial properties being near it.

Gutted but we've let it go and have viewings scheduled... Our buyer was middle of Feb so we've lost a month and have started to sweat now as we were really far into purchasing this property.

How long do you reckon we've got to find a new house, or do you think we should start setting a date for completion soon?
We've got somewhere to go as a last resort but are sure we can secure a new house within the next 3 weeks.

We also have a 2 year old so don't want to upset the balance if we can help it..but obviously don't want to lose our buyer as well.

OP posts:

SimonedeBeauvoirscat · 08/04/2022 21:27

I don’t have a huge amount of expertise but when you say ‘deemed unmortgageable’ do you mean one lender has said they won’t lend? Or something else? Have you tried a broker? A specialist broker if necessary?

Alphabet1spaghetti2 · 09/04/2022 01:05

Try a broker and explain the situation. We are currently being a terrace, the row is set bang in the middle of a huge industrial estate. We have had several banks refuse to lend, even with 50% deposit. But Halifax are a diy fine with it.
So don’t give up all hope just yet.

RidingMyBike · 09/04/2022 07:27

Have you tried a mortgage broker?

Original poster

NotMyselfWithoutCoffee · 09/04/2022 08:38

We have a broker, she tried talking to a few lenders, it was revalued a couple days ago as worth nothing. The broker was told they would not mortgage it under any circumstances as there are 3 commercial units in close proximity. (I'm talking one next door, one across the road and a petrol station down the road).

We did think this could be a problem but the house was so nice and we were reassured by the estate agents. Estate agents are gutted, the broker advised the house is a lost cause and to focus on getting new property ASAP so we don't lose our mortgage deal.
Hence why we are not sure how much time left now to find a house, before buyer might start getting impatient.

OP posts:

Summersdreaming · 09/04/2022 08:52

Wow I've never heard of this, I'm suprised my house isn't affected, it's in a very similar set up and we got a mortgage with TSB no problem

D0lphine · 09/04/2022 08:57

@NotMyselfWithoutCoffee

A house valued at £0 is NOT your dream home!

How fast you find another home will be location and requirement specific.

trainnane · 09/04/2022 08:59

Gosh never heard of that. Owners must be having a nightmare

Grumpycatsmum · 09/04/2022 09:01

Sounds very odd that no mortgage company will lend? Suggest trying another broker or looking for specialist lender. Although you may have the same problem when you come to sell.

Petronus · 09/04/2022 09:11

How weird, I’ve never heard of this either. However I’m struggling with the idea that somewhere surrounded by commercial units and a petrol station could be a dream property. Location is really important and that does not sound like a good one.

ivebeenaroundawhilehonest · 09/04/2022 09:17

I work for a broker, it is common for properties close to a petrol station to not be mortgageable. When this has happened with applications I have dealt with, when I have called lenders, they have always said that it is due to the increased risk of a fire and the ability to resell the property if the property were to come back into the backs possession.

LaurieFairyCake · 09/04/2022 09:24

We had this, we are very close to a car garage and next to shops

We went with Halifax, they were the only ones amenable to near commercial

trainnane · 09/04/2022 09:34

I can see that it would be a dream property if bigger and nicer than something you could afford not near a garage. We looked at a property that was lovely and quite cheap but it backed onto a very busy bus depot.
The fumes put me off & constant rumbling of buses.
In reality garage fires are extremely rare too.

DebtheSander · 09/04/2022 09:40

It is a real shame about the house. But it is best to start looking at other properties.

WRT your buyers, don’t panic. Don’t be rushed into making decisions to protect their offer. We did this once. Sold up and moved into rental. It was only for four months but it was 4 months of expensive rent that could have been spent on the new house.

Lunalicious · 09/04/2022 09:50

I have just sold my house on the edge of an industrial estate next to a petrol station. We had a mortgage on it and our buyers have a mortgage. All the houses on our row have mortgages too. A firework warehouse is opposite! So I find it hard to believe noone will lend to you at all. We were with Halifax.

ChampagneCommunist · 09/04/2022 09:55

Try Handelsbanken. Go direct, not via the broker. They don't have a specific lending policy and can make individual decisions from the branch.

FannylovesDick · 09/04/2022 10:02

What do homeowners in London and other large cities do?

JackieCollinshasnoauthority · 09/04/2022 10:07

Have you had a survey and otherwise happy? I would push the broker to keep trying to find a mortgage on this property and simultaneously look for other properties.

MarshaBradyo · 09/04/2022 10:12

This is new to me sounds tough

But also stressful for the sellers

Will you want to sell at some point and are ok with being in that same position?

SimonedeBeauvoirscat · 09/04/2022 10:13

This sounds odd - there are loads of houses next to petrol stations. If you really want this house I’d try another broker - search for a specialist who advises on hard to mortgage properties. Does the current owner have a mortgage? If so can they tell you who it’s with?

Alphabet1spaghetti2 · 09/04/2022 11:30

Are you absolutely sure there is not another reason? Such as you don’t have enough deposit/maintenance issues/over offered compared to others?
Honestly lots of properties are situated as you describe, and sell for amounts that realistically require a mortgage for 99% of them. To outright value it as zero due to petrol station proximity is unusual. Half of some towns would be unsellable!
Don’t give up hope, go direct to a lender, try another broker.

EmmaH2022 · 09/04/2022 11:37

@FannylovesDick

What do homeowners in London and other large cities do?

Good question My building is on the edge of a High Street. No one has issues.

Not near a petrol station but I've recently viewed a few flats that are about 100 yards from one. I would be amazed if all those flats are unmortgageable.

Sometimes brokers reject mortgage lenders where they think fees are too high. Could it be that? Sounds very odd - though I appreciate it is all getting more odd now!

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