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A collection of properties from my area that may be hard to secure a mortgage against. Many of these are around the same asking price of easier to mortgage properties.

Here's a few from my area:

10th floor tower block flat, OIEO £120k No price reduction since it was listed on 12.8.17

6th floor tower block flat OIRO £75k In the same block as the one above. More realistically priced than the one above (both have 2 bedrooms) and marketed with the same agent. Even if this one is a mess inside it's still a huge price discrepency compared the previous one.

2nd floor tower block flat, £100k Price dropped from £115k to £100k a few days ago. Another EA still lists this property for £115k as a tenanted property. :blink:

run down bungalow with a guide price of £90k I expect it to sell for a lot more at auction on 4.10.17 to a cash buyer with his or work cut out!

Ground floor tower block flat £70k It might be mortgageable as a ground floor flat tbh. In the same block as the first 2. Despite a price drop from £80k to £70k in Nov '16, this one has now spent over a year on the market!

I also wanted to post a link to a run down terraced house but it probably sold before it went to auction.

Do you have any to share ?

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Ibe a fair fews - most of the slum palces in and aroudn middlesborugh.

And lot of places too near the cliff edge.

And i know of a few that are near river banks where the river is now way too close- not for flodding but undermining the foudnation.

It appears top com as a shco kto some people but houses dont last forever. Neither do the foundations they are built on.

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I thought this was a new TV program like "the Undateables" except where Kirsty and Phil get young people to take on as much debt as possible.

On picture 3 I really get the mood of the room. You could sit on the chair looking out of the window in regret with a bottle of whisky. http://www.rightmove.co.uk/property-for-sale/property-68240756.html

 

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1 hour ago, Arpeggio said:

I thought this was a new TV program like "the Undateables" except where Kirsty and Phil get young people to take on as much debt as possible.

On picture 3 I really get the mood of the room. You could sit on the chair looking out of the window in regret with a bottle of whisky. http://www.rightmove.co.uk/property-for-sale/property-68240756.html

 

They are also offering £1000 cash incentive to spend on your favourite malt to drown your sorrows.

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3 hours ago, GreenDevil said:

They are also offering £1000 cash incentive to spend on your favourite malt to drown your sorrows.

A year's supply of DMT might be a better option to cover up the existential angst of having to live in that.

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8 hours ago, MattW said:

A collection of properties from my area that may be hard to secure a mortgage against. Many of these are around the same asking price of easier to mortgage properties.

Here's a few from my area:

10th floor tower block flat, OIEO £120k No price reduction since it was listed on 12.8.17

6th floor tower block flat OIRO £75k In the same block as the one above. More realistically priced than the one above (both have 2 bedrooms) and marketed with the same agent. Even if this one is a mess inside it's still a huge price discrepency compared the previous one.

2nd floor tower block flat, £100k Price dropped from £115k to £100k a few days ago. Another EA still lists this property for £115k as a tenanted property. :blink:

run down bungalow with a guide price of £90k I expect it to sell for a lot more at auction on 4.10.17 to a cash buyer with his or work cut out!

Ground floor tower block flat £70k It might be mortgageable as a ground floor flat tbh. In the same block as the first 2. Despite a price drop from £80k to £70k in Nov '16, this one has now spent over a year on the market!

I also wanted to post a link to a run down terraced house but it probably sold before it went to auction.

Do you have any to share ?

Perhaps one is expected to pay a premium for the benefot of the commanding view afforded by being way up on the 10th floor?  :D

However, for the benefit of those such as myself with next to no knowledge of such high rises, why would these be de facto unmortgageable? What is the usual rationale given by lenders?

These are presumably ex-council?  What little I do know of such is that, to be fair, the quality/reputation of such blocks can vary noticeably. What sort of neighbours can be expected in this particular block in that area??

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1 hour ago, anonguest said:

Perhaps one is expected to pay a premium for the benefot of the commanding view afforded by being way up on the 10th floor?  :D

However, for the benefit of those such as myself with next to no knowledge of such high rises, why would these be de facto unmortgageable? What is the usual rationale given by lenders?

These are presumably ex-council?  What little I do know of such is that, to be fair, the quality/reputation of such blocks can vary noticeably. What sort of neighbours can be expected in this particular block in that area??

It used to be anything over 7 floors or built in concrete cannot be mortgaged and over 4 is difficult.

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1 hour ago, anonguest said:

However, for the benefit of those such as myself with next to no knowledge of such high rises, why would these be de facto unmortgageable? What is the usual rationale given by lenders?

I think once flats go above the 4th floor then most mortgage lenders don't like to lend on them. It's not impossible to secure a mortgage on them but there are more stringent rules or higher interest rate.

Yes the tower block flats are all ex council. Perhaps with £2,000+ annual service charges.  My maternal uncle lived in this block on the 13th floor from 1966 to 1993. From the living room window I could watch a fraction of a Norwich City home match on a Saturday afternoon. :D

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6 minutes ago, MattW said:

 From the living room window I could watch a fraction of a Norwich City home match on a Saturday afternoon. :D

That should halve the value :ph34r:

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12 minutes ago, iamnumerate said:

It used to be anything over 7 floors or built in concrete cannot be mortgaged and over 4 is difficult.

Interesting. Thanks for the factoid.  Now explains to me why one hardly ever sees private sector developments over three or four floors (planning regs aside). The only exceptions that immediately come to mind are some very upmarket 'luxury' flats in major city centres. Presumably those buyers are all cash buyers?

Yet, equally interestingly, apartment blocks greater than four floors (and of concrete construction) are common in so many other countries. Presumably citizens in those countries buy such properties with mortgages? So why not here?  Could it, in part, be in effect be due to a vote of no confidence in UK housing contruction standards?

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4 hours ago, Option5 said:

I think above four floors they need a lift which adds greatly to the build / maintenance charges.

Sure. I understand that added obvious extra maintenance/build cost - but that still doesn't explain/answer my question why apartment blocks above X number of floors are shunned as far as mortgages are concerned? 

As queried in ealrier reply....does this mean those higher rise modern blocks that do get built (and usually marketed as being more 'upmarket') are always cash purchases??

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4 hours ago, MattW said:

I think once flats go above the 4th floor then most mortgage lenders don't like to lend on them. It's not impossible to secure a mortgage on them but there are more stringent rules or higher interest rate.

Yes the tower block flats are all ex council. Perhaps with £2,000+ annual service charges.  My maternal uncle lived in this block on the 13th floor from 1966 to 1993. From the living room window I could watch a fraction of a Norwich City home match on a Saturday afternoon. :D

£2000+  !!!!????  Blimey!  I had heard/been led ot understand that there were often longer term hidden costs to buying ex-council properties BUT those sorts fo annual charges mean that, by rights, such properties really should sell at some discount to private sector builds (possible historical build quality or neighbour social demographic issues aside)

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9 hours ago, anonguest said:

£2000+  !!!!????  Blimey!

There are 2 lifts in that block serving over 100 flats and keeping those serviced and in working order can't be cheap.

14 hours ago, Option5 said:

That should halve the value :ph34r:

:D Some very new blocks built right Norwich City FC has some of that dodgy cladding fitted to it. Yet some of those flats up for sale are still on at the normal market value.

Brennan Bank, Carrow Rd, Norwich

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5 minutes ago, MattW said:

There are 2 lifts in that block serving over 100 flats and keeping those serviced and in working order can't be cheap.

:D Some very new blocks built right Norwich City FC has some of that dodgy cladding fitted to it. Yet some of those flats up for sale are still on at the normal market value.

Brennan Bank, Carrow Rd, Norwich

Jesus wept. It's paying the best part of a decades wages to play Russian Roulette and if you survive all you get is a crappy flat in Norwich.

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1 hour ago, MattW said:

There are 2 lifts in that block serving over 100 flats and keeping those serviced and in working order can't be cheap.

:D Some very new blocks built right Norwich City FC has some of that dodgy cladding fitted to it. Yet some of those flats up for sale are still on at the normal market value.

Brennan Bank, Carrow Rd, Norwich

Again, fair point. BUT 100 flats times £2000 per annum equals £2 million!  I find it hard to believe that the lifts are so unreliable that they would contrubute to that much to the overall bill. Does it really take, on average £2m in wages and materials to annually maintain a building that size??

BUT more interestingly, as asked earlier, is WHY apartments that are more than four floors up are deemed unmortgageable? Does this policy apply to only to older, largely ex-council, housing? Or even newer private build stuff?

Edited by anonguest

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7 minutes ago, Just_Do_It said:

100 × 2,000 is 200,000 not 2 million.

 

Still a lot though.

OOppps!  You're right. Very embarrassing sunday morning brain inactivity on my part. 

My still bleary eyes failed to read clearly what I had typed. 

So, yes, that figure does sound more reasonable for annually maintaining such a large building.

AND.....on the issue of mortgages?  Any explanation?

Edited by anonguest

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11 hours ago, Princekie said:

Here's a house that has the true definition of unmortgageable.

http://www.rightmove.co.uk/property-for-sale/property-44371374.html

Built in the late 1940s. No foundations. Steel rods with concrete slabs strapped to them.

Anyone fancy it?

Looks like an Airey house. Yes, I'd say unmortgageable. The house next door has been sorted.

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1 hour ago, MattW said:

Looks like an Airey house. Yes, I'd say unmortgageable. The house next door has been sorted.

Yes. Indeed.

BUT, again, what is it specifically about high rises (ablove four floors) that supposedly makes them unmortgageable?

 

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1 minute ago, anonguest said:

BUT, again, what is it specifically about high rises (ablove four floors) that supposedly makes them unmortgageable?

I'm sorry but I don't know the exact reasons why flats above 4th floor are more difficult to get mortgages on. At least it was the case 15 years ago. That's a question for a mortgage expert.

High Rises seem to be making a comeback so maybe lenders are more kinder these days. :)

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On 11/09/2017 at 1:15 PM, MattW said:

I'm sorry but I don't know the exact reasons why flats above 4th floor are more difficult to get mortgages on. At least it was the case 15 years ago. That's a question for a mortgage expert.

High Rises seem to be making a comeback so maybe lenders are more kinder these days. :)

I think you mean more careless/carefree.  ;-)

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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