Cladded apartment blocks and zero valuations

  • Filter
  • Time
  • Show
Clear All
new posts

    Cladded apartment blocks and zero valuations

    Hi all,

    I am currently trying to purchase a 2 bedroom apartment for a BTL purpose in Manchester, and my first two mortgage providers have refused to lend as, since the new regulations came out in January requiring a BS certificate on ALL KINDS of cladding (which most buildings do not have currently). My question is if anyone else has come across this, and if so, are there any lenders out there that are a little more flexible on this (I understand it's to do with the valuer) as the building is not cladded in ACM, but Terracotta tile.

    I understand the developer and the management company are working to get this documentation, but it could take up to 1 year.

    Any help would be appreciated.


    The "compliance to regulations" situation seems to be outside your control and you have to wait until the developer sorts out the problem.


      I regret to advise that there are no lenders who have published within their criteria governing such matters and in such instances if flexibility does exist the lender will defer to its appointed valuer fortheir professional opinion in the same way as many lenders have an apparent aversion to ex-Council flats which have deck access.; hopefully a lender will refer such property Suitability before you are required to submit an application thereby saving both sides the associated costs / abortive admin time.
      Given that two lenders have declined , hopefully not the same valuer ( check this out as I know only too well that some valuersdo have a predudice against certain property types) this should put down a marker that until the building has been cleared such properties have to be deemed unmortgageable.


        Buy a different property simple


        Latest Activity


        • Reply to Yields going forward
          by gnvqsos
          You are probably right in all aspects.Although I agree with you

          "Yield is the income returned on an investment, such as the interest received from holding a security. The yield is usually expressed as an annual percentage rate based on the investment's cost, current market value, or...
          21-09-2020, 18:00 PM
        • Reply to buying btl next to my other btl
          by loanarranger
          Subsequent to my last posting I can confirm that there are a number of lenders whose criteria indicates a willingness to consider such application with a few making it a condition that the property will not be migrated into the adjoining property. Sorry for the delay but I had time on my hands whilst...
          21-09-2020, 14:49 PM
        • buying btl next to my other btl
          by Berlingogirl
          I wasn't going to invest in another BTL but one has come up for sale next to one I already have and it's at a reasonable price.

          I have spoken to my mtg advisor who said there might be a problem buying a property next to one I already have because mtg lenders think I might knock through...
          18-09-2020, 11:54 AM
        • Reply to Yields going forward
          by jpkeates
          There are lots of different ways of calculating "yield".
          Based on a return on capital employed, the yield would be 25%.

          If you based it on today's value, let's say it's worth £400,000, you could argue that the yield is 2.5%, which is probably useful if you want to think...
          21-09-2020, 14:45 PM
        • Yields going forward
          by gnvqsos
          As letting becomes more difficult with new restrictions and removal of subsidies and tax breaks,will opportunist landlords exit,sell properties and precipitate higher rents and yields?what is a good yield in these circumstances
          17-09-2020, 07:45 AM
        • Reply to Yields going forward
          by BTL investor
          Yes it’s 25% if you base the calculation on the historic purchase price, but you can make the yield appear even better if you purchased the property with a 25% deposit of £10,000 and base your calculation on that, now your yield becomes 100% 👍...
          21-09-2020, 14:28 PM
        • Reply to Yields going forward
          by gnvqsos
          You can calculate yields in a variety of ways but an economist always compoares the yield against the next best alternative.To do this you have to imaginen the value of an asset is realised contemporaneously,not on original price.I bought a house 25 years ago and its price was £40000.The rent is £10,000...
          21-09-2020, 13:32 PM
        • Reply to Yields going forward
          by flyingfreehold
          Many years when I was working in stockbroking an elderly client rang up and said "I hear yields are going up, will you buy me a few?"
          21-09-2020, 09:56 AM
        • Reply to Yields going forward
          by jpkeates
          No they don't.
          They can be, but it's not any kind of rule....
          21-09-2020, 09:47 AM
        • Reply to Yields going forward
          by gnvqsos
          Yields need to be based on current value not historic value....
          20-09-2020, 17:44 PM