Mortgage valuation problems & what property defects are mortgage lenders looking for in their valuation?
When you are arranging a mortgage the lender will carry out a basic mortgage valuation. This article covers the Top 10 Mortgage valuation problems often found by the surveyor who is checking the property on behalf of the lender. If you or the purchase have any difficulty in obtaining finance as a result of the property defects please let us know as we may be able to help.
Top 10 Mortgage valuation problems
- Subsidence and heave
This is to do with uneven ground beneath a property. Subsidence is ground dropping and heave is where it is rising.
For example: i) Old-style sash windows that need regular maintenance to keep the cords moving freely ii) Seal in double glazing gone creating condensation between the two panes.
- Loft Conversions
One of the common questions on a mortgage application is has a loft conversation been carried out? The lender may seek evidence that planning permission was obtained or that it was within building regulations. What are they looking for? Typically: fire safety; insulation; ventilation; and ample headroom on staircases.
- Trees and ‘Invasive species’
Tree root damage to foundations and drains of a property. Japanese Knotweed is the most common ‘invasive specicies’in UK gardens. If ignored, the root system of this sturdy plant can wreck drains, underground cables, walls and paved areas.
a) Raising damp. This is from the result of moisture rising up from the ground. Signs are peeling paint and wallpaper, discoloration of skirting and floor boards.
b) Penetrating damp. Where damp is entering via another area other than the floor such as a leaky roof or gutter.
c) Condensation. Normally as a result of high humidity such as a shower, washing and tumble dryers.
- Dry and wet rot
Dry rot is due to decay in the timber within the property caused by a fungus that sucks the moisture out form the wood. Wet rot is timber decay due to high level of moisture typically caused by a structural defect such as the absence of a damp-proof course or burst pipes.
- Termites & Wood worm
Termites are a type of white ant from the cockroach family and they eat away at wood in ceilings, floors and walls. Woodworm is the larvae of beetles and they bore multiple holes the size of a pin head.
- Flat roof and chimneys
This type of roof is prone to leaks and a shorter life span than traditional pitched roofs. The mortgage surveyor will look at the sealants, membrane covering and for areas where water pools are present. Chimneys that are leaning or have been removed can cause issues. Blocked stacks that might cause ventilation or moisture issues.
New electrical installations, alterations and additions need to comply with electrical safety performance standards and buildings regulations.
- Landfill or radon gases.
As well as the mortgage surveyor the solicitor might find pick up on whether the property is on or near an existing or dormant landfill site where gases and odours being a concern. Radon gases are a result of the decay of uranium or thorium in the earth.
For more information on how we can help source the right lender if you have had issues with valuations, please contact us on 0207 993 2044 or alternatively complete the simple enquiry form on the top right hand side of this page
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines.