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Nat west , buy to let
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Alan 99
Posted: 02 July 2014 09:24:16(UTC)
#1

Joined: 02/07/2014(UTC)
Posts: 3
Hi ,

Wondered if anybody else was aware that nat West Bank will take money to do a valuation of a property , but will not offer a buy to let advance , if the property needs any sort of repairs before it is available for tenants
Ie , if a house needs £500 pound spending on it they will not release funds , even though in most cases 25% of purchase price is already sitting in thier equity

Unbelievable
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Recently Redundant and Retired
Posted: 02 July 2014 15:42:26(UTC)
#2

Joined: 08/03/2011(UTC)
Posts: 334
I find this more reassuring than scandalous.
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Alan 99
Posted: 02 July 2014 16:47:39(UTC)
#3

Joined: 02/07/2014(UTC)
Posts: 3

How so ? They charge valuation fees to inspect a property , yet won't release funds if there's any repairs need doing , surly the best solution is to release money and hold some sort of retention , till work is carried out . I've bought numerous properties and all needed something spending on them .

To me it is scandalous that they are allowed to charge fees for valuations , with no prior warnings that if the house is not 100% perfect to let out ( what house is ) the mortgage will be declined
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Recently Redundant and Retired
Posted: 02 July 2014 18:08:06(UTC)
#4

Joined: 08/03/2011(UTC)
Posts: 334
Sorry, I'm just reminded of the 2007-08 banking crisis.
While a £500 repair seems trivial, it still puts you out of contractual compliance. Surely the vendors would carry out the repair to clinch the sale, particularly if it is being sold as a BTL. This is how a surveyor's report is normally used, rarely as a deal-breaker, more often as a bargaining lever on price or repairs prior to exchange.
Unless you're buying at auction of course.
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