Is my victorian warehouse unmortgageable without a lift?

Is my victorian warehouse unmortgageable without a lift?

0:02 AM, 12th June 2024, About 4 months ago 4

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Hi, I have a converted Victorian warehouse in London which is six storeys high. The top flats are duplexes entered on the fourth floor (fifth storey).

I have decided to retire and sell the block. The top flats are wonderful penthouses with a large terraces. I offered one to market (at a very competitive price – I want to retire from BTL) and it went under offer at asking price immediately. It’s a great area, good connections and fantastic position. It’s always been hugely popular and never had a rental void in 25 years of letting.

However, a valuer recently refused my buyer’s mortgage application because the building is six storeys high with no lift. Despite its period charm, this has never been an issue before.

However, a valuer recently refused my buyer’s mortgage application because the building is six storeys high with no lift. Despite its period charm, this has never been an issue before.

Both the agent and I were shocked. The agent now says that all flats in the block (from ground floor to the fourth floor) might be affected by this lack of a lift, as the valuer is a local panel valuer and could influence the valuation of the entire block.

I’ve had mortgages on all flats in the past (highstreet lenders, high LTV BTL mortgages) with never a problem. The flat is clearly very, very saleable. Did I just get a ridiculous jobsworth valuer?

I know the buildings on either side are similar with no lift and flats have always sold well (one recently at 15% more psf than I was asking).

I hear that some high street lenders say that fifth floor with no lift is subject to valuers opinions (but usually London conversions, in popular areas, penthouses and such will be acceptable). They want to make sure the property is saleable collateral.

Have things changed recently? Is this common these days? Do I conclude that the flat is not fit for high street mortgages anymore?

Thanks,

Lancelot


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Dylan Morris

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10:34 AM, 12th June 2024, About 4 months ago

Most lenders will require a lift if the block is higher than 4th floor (ie. more than 4 flights of stairs). Although out of your hands I’d try asking your buyer to seek a mortgage broker if they’re not using one already, to see if there are some lenders who are more accommodating.

Judith Wordsworth

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10:39 AM, 12th June 2024, About 4 months ago

Contact UK Finance, used to be Council of Mortgage Lenders, who work with and on behalf of UK mortgage lenders – banks, building societies, specialist lenders (including those who are authorised to service mortgages)

And ask them

https://www.ukfinance.org.uk/contact-us

Dylan Morris

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10:47 AM, 12th June 2024, About 4 months ago

Sorry just read your post again. If the flats are on the top floor being the 4th floor (that’s 5 floors if we include the ground floor) then if there are only 4 flights of stairs to climb then this would fit most lenders criteria. If this is the case then looks to me like the valuer has made a mistake.

Lancelot

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11:23 AM, 12th June 2024, About 4 months ago

Reply to the comment left by Dylan Morris at 12/06/2024 - 10:34
Many thanks for your advice.

I wonder what's happened to the freedom of the market to choose a price? If the fourth floor with no lift is a problem, let the market find a lower value. It's basic economics.

It's also bonkers that the whole block (including the ground floor) will suffer for want of a lift.

I understand that there has been a bad combination of lender and valuer. Yes, it's a case of choosing someone else.

Perhaps the problem will be solved when Labour get in, stop Section 21 and raise CGT to marginal income tax rates. There will then be no possibility of selling and even if it were sold, 45% CGT on 25 years of inflation and hard work is brutal.

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