Obtaining lending for house with unconsented kitchenette

[jonny5]

Hi there,

We are interested to bid on a house at auction next wed however we are struggling to get finance.

We are fine from a servicing and security point of view but the bank is not happy with a clause in the sale and purchase agreement that declares an unconsented kitchenette off one of the bedrooms.

The kitchenette contains a sink, tap and 2 element hob. We had a building inspection done today which raised no concerns about the kitchenette.

It's currently sitting with the banks credit risk dept. And we are awaiting to hear back. We want to be prepared in case they decline.

I had already attempted to get quotes for insurance for the property but that got declined due to the kitchenette so I want to see what we can do.

I was thinking a next step would be too see if we could get a variation on the sale and purch agreement stating we could get access to the property prior to settlement to remove the sink/tap and hob. Very keen to hear if others have better ideas.

We are very keen on this house but worried we won't have our finance sorted in time. Any advice is appreciated.

Cheers

[brokerman]

Hiya. Unfortunately pretty common at present. First thing is Insurance, without full cover you will not get any lending from any source. Second, would need to know the loan to value as if over 80% I'd say no go. Happy to chat through options, good luck!

[John the builder]

how old is the kitchenette?

if pre 1992 (or can be stated as such) then get a simple safe and sanitary report. Tell the bank that you will get this sorted or remove the sink. In sura\nce should be treated the same.
It could have been legitimate if it was established by substitution of another fixture?? in which case a simple schedule 1 report can cover this (simialr to S and S)
This should also be true for post 1992 work (say if the house is of more recent vintage and cannot be pre 1992) but unfortunately a COA is the preferred option (if schedule 1 does not apply) if council deign to issue one.

This is really stupid of the banks

[artemis]

Is the problem due to the kitchen 'definition', the hob or the sink being installed / plumbed in without consent. Or something else or a combination. Some items are easily removed, like sink as John suggests. The hob might be trickier as the local council definition might determine that alone means it is a kitchen, depending on how it is wired. Rather than say a workshop or studio with running water (of course). Hob can be removed. Plug in appliances like microwaves don't necessarily indicate a kitchen but probably not a great idea to be front and centre if the inspector comes calling.

And as John also says insurance can include a condition to remove or get council OK within a set period. Are you talking to your existing insurer, or the existing insurer for the property. That can work better sometimes than approaching new.

Everyone is v risk averse these days.

[Perry]

Everyone is v risk averse these days.

Is that why we have an 'affordable' housing shortage?
Is that why Labour never even got close to 10,000 affordable houses a year?