Mortgage for non planning compliant house

Oddhay

Hoping someone has experience\knowledge in this issue. We want to apply for a mortgage for a partially built property that wasn't built exactly according to the plans with some minor variations like windows planned and not built etc. The planning permission has since run out so we would need to apply for retention. We could be told we can keep the house as it is already or they could tell us to match the original plans exactly - which would not be a problem. A potentially bigger issue (that the banks might see as a bigger issue) is there was a septic tank planned for but wasn't installed so that would require new planning permission.

So, my question is, will the banks give us a mortgage for this property given that it's not fully planning compliant? We are confident we will get the planning for everything we need but the banks may not look on it that way...

Anyone been in a similar situation?

Jim2007

Given the large number of good candidates out there looking for a mortgage, why would they take a risk on something like this - you might not get the permissions required and then it would be worthless from the banks point of view... on top of that you have shown scant regard for the planning laws up to now, so how can they be sure that you will even carry out the required undertaking???

Markcheese

You don't currently own the site ??
Can you get the owner to get planning ?
Or try the bank and see what happens ??

ravima

no septic tank! Where's the waste going????

Oddhay

Thanks for the responses.

Jim2007 - We spoke to the planning office and they don't see any reason why we would not get planning.
"you have shown scant regard for the planning laws up to now" - we do not own the house, we are looking to buy it, any building carried out was not done by us

Markcheese - No, we don't currently own the site, we are looking to buy it
Can you get the owner to get planning ? - Owner is a receiver so no
Or try the bank and see what happens ? - we will have to disclose this to the bank but am wondering how they will react and if anything can be done in the mean time to increase our changes... we could apply for planning now but as we don't own the house adn are not guarentted to get it, it would be a significant risk

ravima - There is no waste as there is no one living in the house - it's partially built and needs finishing before it can be lived in

Bopidyboo

Hi Oddhay. Would be interested to hear how you got in with this?

Trish56

It is indeed possible to get a mortgage on this property however I note that this is a receiver sale which is far more complicated as they will not provide any documentation to you so you will have to follow up on this.

I think you should firstly contact your Solicitor to discuss and secondly contact your Local Planning Office who can look up the original planning permission and plans. A Planning Officer may call to site and you should be able to apply for an extension to the original planning permission and retention for any changes and a proposal for septic tank/sewerage system.

You will need a qualified Architect/Engineer with PI Insurance to supervise the completion of the property and submit an estimate from a builder or detailed costings if proposing to complete by direct labour. You will have to find out if the construction to date was supervised by an Architect/Engineer - you may be able to get this detail from the planning office. Is the property sealed as in roof completed and windows and doors fitted?

A lender will give you 90% of the purchase price and up to 75% of the cost to finish subject to satisfactory valuation. Stage payments will then be issued as the work progresses and must be certified by your supervising Architect/Engineer.

Hope this helps.

BuffyBot

2 yr old thread

/zombie