Mortgaging unfinished renovation

[numberwang]

Hi all

In process of buying grade II listed farmhouse that's 80-90% renovated by previous owner. There is a little complexity as previous owner got permissions and LBC but didn't submit building regs application we're aiming to buy it, finish the works get retrospective approval and live there...

We have mortgage offer but building soc want confirmation of building control completion certificate. When we applied we advised there wasn't one and had the ok, but their legal dept are thinking otherwise and asking our solicitor to provide.

Indemnity insurance not an option as council aware of unfinished works.

Has anyone got mortgage in similar circumstances? I'm thinking it can't be that uncommon...

 

[jocelyn plummer]

Hello numberwang, and Welcome. Whilst I am sure that somebody will be along with some better advice, may I suggest that it is quite possible that the legal Department is asking for something that is on their tick list and they have not 'understood' that you have already pointed out why there is nothing available---these organisations are simply sausage machines at the desk front, so some how you will need to find a Senior Human being to SPEAK to and spell out what is perfectly clear to me. Very Best of Luck, keep us all posted

 

[numberwang]

Thanks Jocelyn, we need all the luck we can get! It's quite late in the day to ask for the non existing completion certificate but let's see how it plays out.

My only other thought is to switch to some sort of self build mortgage (I'm thinking it's a similar scenario with incomplete works) but have to go through hassle of applying to another lender to get to offer stage again...

 

[MikeG]

I would go to a mortgage broker. These guys know how to deal with this sort of thing.

One route you might take is to have a bridging loan to get the house purchased and the work finished, then convert to a mortgage. This is expensive if it runs for too long, but if it means you end up with the house rather than without it, it might be worthwhile considering.

 

[Loki7430]

I can only reiterate the above really - a good mortgage broker will be the best place to start. Renovation mortgages (such as Buildstore) or bridging (as pointed out an expensive option) may be necessary but it also really depends on what the tasks that need to be finished are; if it is decorative there may be a way around the building regs but if there is no workable kitchen or bathroom then that is a much bigger task as the house is not habitable by mortgage company standards.

 

[numberwang]

Thanks all. The mortgage offer we have is through broker but in his words "the sales team may not be aware of all the legalities" and he expects solicitor to sort out!

Solicitor is looking at it so will see what this week brings, but may be time for rethink broker and mortgage wise.. grrr!

 

[numberwang]

Also it has working bathroom and kitchen and is fine from that perspective, just no completion certificate .. valuer didn't even suggest structural survey (although we're doing one).

 

[Feltwell]

.. valuer didn't even suggest structural survey (although we're doing one).

That's fine, but don't let the mortgage company get sight of it. If they see things like "signs of infestation" - otherwise commonly known as woodworm, a catch all term that usually means furniture beetle which is extremely common in older houses, usually long since stopped - they may put a retention on. There's aren't many old houses that won't feature some or all of their "tick box" retention features:-

Signs of infestation
Minor roof repairs required
Damp
Electrics / Gas needing inspecting
Wood rot

We were advised to get a mortgage valuation survey done to give to the mortgage company, and a structural survey for our eyes only. Worked for us!