Property too close to takeaway

[Lara]

Has anyone had this issue where a lender has declined a BTL mortgage due to the property being too close (2 doors away)? Apparently this affects the re-sale value even though the value on the property has factored this in and if sold today, would achieve that price.

[nukecad]

The lender can decline for any reason they like. (or simply decline without giving any reason).

You can't force somebody to lend you money.

Try a different lender.

[Lara]

Thanks for the response, but it doesn't answer my question. Not sure how common this is, but you would think this sort of thing will be known upfront before there is a hard credit search on your file and the whole mortgage process gets underway with surveyors and solicitors engaged. Happy to go elsewhere, but have spent the last few weeks with this company completing all the forms, dealing with solicitors and surveyors. Nothing wrong with the property, valuation accepted, but there's a takeaway a few doors down on the same side of the road.

[Lara]

Ps: nothing in their terms and conditions about - everything else under the sun is, but not this one.

[Section20z]

Flats above takeaways have always been a problem, not sure how they would have known there was one "two doors down" but maybe it's something they ask the valuer to report on specifically.
Maybe your broker or adviser ought to have known this rule and warned you.

[loanarranger]

Lenders rely on the advice of their valuer who in turn will determine whether the Indian/ Chinese / Macdonalds and any other fast food outlet has the necessary piping to ensure that the smells/ aromas do not pervade into property in the immediate vicinity , also is there a possibility of the takeaway being a nuisance to the neighbourhood.
Recently I had a client who had built a superb MFB immediately next door to such aunit but the valuer was satisfied that the unit had sufficient chimney stack to negate any issues.
Ifyou are using a broker I am sure that he can establish the facts and depending on the report from the valuer he can see whether another lender can help.

[Lara]

Thank you Loanarranger, that's what I was hoping for. This is a new broker to us and they are indeed looking for a new lender. We may go back to our old broker - he charges us, but his service as been great over the years. Sadly offspring decided to do things her way and we ended up with this new broker. No guarantees that my old broker would not have had this issue, but we live and learn.

Thanks again for your great input.

[Lawcruncher]

The problem these days is that lenders will not make decisions. Fifty years ago if there was an issue you could call the local branch of a building society and speak to someone you probably knew. They would either say there was no problem or refer it to head office who would come back with an answer. Today, lawyers and surveyors effectively have to assume the risk. It is of course quite right that both should be sued for negligence if they give bad advice, but not that they should assume the risk if it is they rather than the lender who has to "take a view". It is understandable if lawyers and surveyors take a risk averse approach.

[loanarranger]

Lara, I was interested in one of your comments in your last post” your old broker charges a fee, so does solicitors & accountants but one pays but if at the end of the day the outcome meets your expectations then everyone is happy; by and large clients do not realise the time it takes from receiving an enquiry to actually getting the desired mortgage and sometimes the outcome might not be positive as one hopes so the initial fees calculated on £/ hour could be way below one would get from stacking shelves in a supermarket. As you have discovered the new broker didn’t charge and to date your quest for a mortgage has unfortunately been unsuccessful.
I really do hope you obtain your funding , I agree that decisions are often made by surveyors and can be contentious but underwriting is made in locations where the underwriters have no knowledge of the area where the property is located which is why the broker should use his/ her knowledge of the lenders who have a more accommodating set of criteria which includes lending on units adjacent to take sways.
Best regards.

[Lara]

Loanarranger, I am with you there! I have been using the same broker for several years across both BTL and personal property and I recommend him to my friends as well. I have no problem paying for a service and he does earn every penny. He managed to get someone a mortgage recently for his flat fee, when others were quoting silly money, so happy to keep using his service.
Unfortunately reins have been handed over and I am watching from the sidelines - too old to hack it on the pitch, but still screaming tactics from a position on the side . I'm sure she'll learn the error of her ways soon and go back to doing the right thing. In the meantime, I'll go back to my glass of wine.
Thanks to everyone for taking the time to respond.