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anonguest

Mortgage Availability For Non-standard Construction

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Anyone want to share thoughts or knowledge of how the dramatic reduction in available mortgage financing might disproportionately affect some sectors of the property market - specifically non-standard construction property (e.g concrete houses).

even in the 'good times' where lenders would lend on non-standard construction, they would do so only with notably higher deposits from teh would be purchasers.

Is it possible that what money is available for mortgages will be rationed more for brick built properties, and less so for non-standard construction?

Putting aside the legitimate worries relating to these various non-brick build properties (although many are perfectly sound), is it possible that their presumably already lower values may be disproportionately reduced further - to the point that they may actually become pretty good value (assuming a given property is checked to be sound).

i.e could some niche sectors of the property market get depressed irrationally and unfairly, offering bargains to some.

Just a thought that occurred to me.

Edited by anonguest

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Interesting point. Perhaps you're right.

Personally I think all the house builders own too much land they bought when prices where high. They're not about to make a loss on every house they build and material costs haven't come down. Therefore houses can't be built now and sold for any less.

So maybe there is something in non-standard construction older properties going for less?

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Interesting point. Perhaps you're right.

Personally I think all the house builders own too much land they bought when prices where high. They're not about to make a loss on every house they build and material costs haven't come down. Therefore houses can't be built now and sold for any less.

So maybe there is something in non-standard construction older properties going for less?

sure, house prices down 18% on what people paid 2 years ago.

previous prices prevents nothing.

you are clearly chinese.

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Interesting point. Perhaps you're right.

Personally I think all the house builders own too much land they bought when prices where high. They're not about to make a loss on every house they build and material costs haven't come down. Therefore houses can't be built now and sold for any less.

So maybe there is something in non-standard construction older properties going for less?

The reason for asking was that, last weekend whilst visiting someone, I was told that "almost everyone" he knew on his estate had found it impossible to sell - and prices were very reluctantly being dropped quite dramatically.

In each case, he had heard, that offers aplenty had been made on various houses BUT all had fallen thorugh when would be purchasers "couldnt get financing" (which I read to mean mortgages).

The concrete properties themselves are, as far as I can tell from subsequent internet research, actually very sound. Certainly his has no problems at all.

If such a situation continued then the real possibility might arise, as said above, that they could be reduced to near distress levels to help ensure selling??

From a rental yield point alone they could be good value indeed.

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The reason for asking was that, last weekend whilst visiting someone, I was told that "almost everyone" he knew on his estate had found it impossible to sell - and prices were very reluctantly being dropped quite dramatically.

In each case, he had heard, that offers aplenty had been made on various houses BUT all had fallen thorugh when would be purchasers "couldnt get financing" (which I read to mean mortgages).

The concrete properties themselves are, as far as I can tell from subsequent internet research, actually very sound. Certainly his has no problems at all.

If such a situation continued then the real possibility might arise, as said above, that they could be reduced to near distress levels to help ensure selling??

From a rental yield point alone they could be good value indeed.

normally nothing "wrong" with these houses.

proof positive that prices are determined by finance.

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What exactly is a concrete house?

One built of concrete blocks or one built of poured concrete?

The properties in question are bog-standard semi-detach style BUT made of a reinforced steel poured concrete construction - externally the untrained eye would never know.

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previous prices prevents nothing.

Land valued as an asset on the balance sheets of builders doesn't care about prices today. What do you think they're going to do right off the difference between what they paid and what you'd like to pay for it, revalue the asset and then start from scratch at a revised level?

That would sink every house builder in the UK.

You are clearly deranged.

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Land valued as an asset on the balance sheets of builders doesn't care about prices today. What do you think they're going to do right off the difference between what they paid and what you'd like to pay for it, revalue the asset and then start from scratch at a revised level?

That would sink every house builder in the UK.

You are clearly deranged.

how do you suppose companies go bust. never heard of cash flow. no, I thought not

and banks.....loss of value of their financial assets....used as security for rescue loans AT A HAIRCUT.

may i suggest you read about business and finance before spouting your mouth off.

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how do you suppose companies go bust. never heard of cash flow. no, I thought not

and banks.....loss of value of their financial assets....used as security for rescue loans AT A HAIRCUT.

may i suggest you read about business and finance before spouting your mouth off.

FIGHT FIGHT FIGHT FIGHT............. :lol:

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FIGHT FIGHT FIGHT FIGHT............. :lol:

its a bit one sided, but I think I can manage. Ill Pm the popcorn

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The properties in question are bog-standard semi-detach style BUT made of a reinforced steel poured concrete construction - externally the untrained eye would never know.

Problems are 'concrete rot' and rusting of the supporting steel rods, according to surveyor of my previous non-standard construction flat. At the time (early 2007) the only mortgage lender that would touch it was Halifax, but no restrictions as far as I was aware.

Cracking flat by the way, but sh*t area!

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Anyone want to share thoughts or knowledge of how the dramatic reduction in available mortgage financing might disproportionately affect some sectors of the property market - specifically non-standard construction property (e.g concrete houses).

even in the 'good times' where lenders would lend on non-standard construction, they would do so only with notably higher deposits from teh would be purchasers.

Is it possible that what money is available for mortgages will be rationed more for brick built properties, and less so for non-standard construction?

Putting aside the legitimate worries relating to these various non-brick build properties (although many are perfectly sound), is it possible that their presumably already lower values may be disproportionately reduced further - to the point that they may actually become pretty good value (assuming a given property is checked to be sound).

i.e could some niche sectors of the property market get depressed irrationally and unfairly, offering bargains to some.

Just a thought that occurred to me.

Dont think there are any lenders left in the market lending on non standard construction, they are usually RTB council stuff. If you could find a lender say like the Cheshire rates are going to be in double figures for sure.

Lenders like Victoria that used to lend on this tyoe of stuff are now bust. Lenders now wil l=not lend on anything but super prime. Pre 2007 it was hard to get a mortgage for RTB property over 4 floors now it is impossible. Those that have bought can not sell or remortgage.

Just another part of mortgage lending gone along with self cert and sub prime.

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Dont think there are any lenders left in the market lending on non standard construction, they are usually RTB council stuff. If you could find a lender say like the Cheshire rates are going to be in double figures for sure.

Lenders like Victoria that used to lend on this tyoe of stuff are now bust. Lenders now wil l=not lend on anything but super prime. Pre 2007 it was hard to get a mortgage for RTB property over 4 floors now it is impossible. Those that have bought can not sell or remortgage.

Just another part of mortgage lending gone along with self cert and sub prime.

Apparently there are supposedly a few 'mainstream' lenders (e.g Abbey, HBOS) - BUT the catch is a much larger deposit is normally required

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Problems are 'concrete rot' and rusting of the supporting steel rods, according to surveyor of my previous non-standard construction flat. At the time (early 2007) the only mortgage lender that would touch it was Halifax, but no restrictions as far as I was aware.

Cracking flat by the way, but sh*t area!

My sentiments too. Thats why I said IF such a property is found and is checked to be in perfectly OK condition, then the 'stigma' of such properties combined with the possible(?) reduction in mortgage availaibility for such properties could end up making them very attractive price wise - at least for a period until (as always) 'the market' corrects such anomalies.

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I am with the OP. Anything that does not read "brick and tile" on a freehold property will often be rejected.

I have built high spec houses with metal roofing and lenders tended to get sniffy about it. That was before the squeeze. If they had been flats or commercial it would have been fine.

Near where I live are some houses with steel frame / steel cladding. I think they are ex LA and have always been a prob to sell. On the upside, these places can make good BTLs if you bear in mind that you won't get much capital appreciation.

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My sentiments too. Thats why I said IF such a property is found and is checked to be in perfectly OK condition, then the 'stigma' of such properties combined with the possible(?) reduction in mortgage availaibility for such properties could end up making them very attractive price wise - at least for a period until (as always) 'the market' corrects such anomalies.

Ah, but how do check steel rods that are enclosed in concrete? You can't, hence the greater risk to lenders.

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The properties in question are bog-standard semi-detach style BUT made of a reinforced steel poured concrete construction - externally the untrained eye would never know.

Would that be the Laing Easiform type? I've looked a a few dozen of these and never seen a problem that would have put me off. No problems with mortgages pre crash but they did tend to sell for about 10% less than the equivelant conventional house on the same estate. I havent heard of any problems getting mortgages on these but as chance would have it I haven't had to value one this year. Very interested to hear if anyone has definate information.

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I havent heard of any problems getting mortgages on these but as chance would have it I haven't had to value one this year. Very interested to hear if anyone has definate information.

Could be a reason for that

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Ah, but how do check steel rods that are enclosed in concrete? You can't, hence the greater risk to lenders.

Any problem with the steel rods immediatly announces itself with a rust stain on the exterior of the wall. To fix this you hack off the affected concrete, chemically treat the rust and make good with a suitable render. Easy job and a rare one. These house are structurally very strong.

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Would that be the Laing Easiform type? I've looked a a few dozen of these and never seen a problem that would have put me off. No problems with mortgages pre crash but they did tend to sell for about 10% less than the equivelant conventional house on the same estate. I havent heard of any problems getting mortgages on these but as chance would have it I haven't had to value one this year. Very interested to hear if anyone has definate information.

Yes. Laing Easiform.

My friend told me that, of all the concrete housing stock in the country, they were the best and have a respectable track record - which is why he bought it in the first place plus the as mentioned 'discount'.

But now, in credit crunch times, that 'discount' could well widen even further??...........

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These properties can also be 'repaired' under a special engineering license. I repaired one in 2004. Cornish I - type property. Cost to repair 30K (included full repair costs/engineering license, bldg control, etc, labour new carpets, full re-dec and 1 mtr extension, bay windows,etc) Once repaired (under correct license), then becomes more appealing in respect of obtaining a mortgage, though still difficult.

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