Building regulations and mortgages

Just when we thought we were ready to go the bank have thrown a spanner in the works. We were asked to have a structural survey done which we then submitted to the bank. There was no structural concerns as such but there was rising damp. Also, since it's over a hundred years old, some things (window and door heights) do not meet current building regulations. I should get a decision today but I've been told by my mortgage guy that he doesn't think it will be approved.

So now it looks like we're back at the start again, looking for a new house. I considered looking for another mortgage but finding another house might well be easier.

The question tho is, can/would the bank refuse to mortgage because of a house not meeting current building regulations? Surely there are many houses in Ireland that don't...are they ALL unmortgageable?

Doesnt make sense. If a house was in compliance with regulations ( if any) when it was built then its fine. If the house is over a hundred years old there were no such regulations. To fail it because it doesnt meet todays brs is ridiculous and wrong. Is it the valuer who has said this? Get another valuer who knows what they are talking about.

Thanks for replying Vanilla. It's the bank that are saying the mortgage will probably not be approved because the windows/doors don't meet current building regulations. The surveyor was brilliant and very detailed, he said he had concerns about various aspects but it was nothing the bank would/should/could get concerned about.

Up til now we've been given the impression that the survey was for our benefit but now it seems the bank will make a decision once their own engineer has read it.

That's nonsense. I find it very hard to believe. What bank, or perhaps you don't care to say?

its not necessarily nonsense, the bank's asset is the house and if the house isn't up to scratch, they won't raise a mortgage against it

can I ask if you have plans to refurbish the house ie replace the windows etc, if you have and can provide quotes/details etc to the bank and their valuer, then they may be willing to offer a mortgage on the basis the house will be brought to to building regs standard

DeirdreL

www.rea.ie

Vanilla, it's the BOI. I thought it was nonsense too but at the end of the day, it's ultimatly their decision I guess.

DierdreL, we've spoken to the mortgage guy about our plans, Family home for years to come, do a lot of the little stuff ourselves. We haven't gone as far as to get quotes or anything but yes, over time, we planned to bring some aspects into line but a lot of the appeal of the house is the character so unless it's broke, we won't want to interfere too much.

The worrying bit really is that if the bank say "no" we can't go back with proposals (apparently).

Banks concern seems to be "resaleability"

It IS nonsense to say that just because a hundred year old house doesnt comply with current building regulations that it 'isn't up to scratch'. This raises no legal or planning problem. So what exactly IS the problem?

That, my friend, is the question every single person I have spoken to has asked!

I've scoured this site before posting the question and it hasn't arisen so I can't see why it did with me.

Someone has raised this issue with the bank. I can only think it must have been the valuer. If that is the case then why? The answer to your question lies in talking to the valuer. Is this person a qualifed engineer?

Can I clarify with you? The valuer was another estate agent who sent the valuation to the bank with a recommendation that the house be surveyed but didn't say why.

The bank said I would now need to have a survey done and they would need to see the report. I engaged the surveyor (qualified). Sent a copy to the person who organised the mortgage and it was he who said the underwriters would have a problem lending on the property. A formal decision is expected today.

Can you set out exactly what the survey said? IE the relevant part. I cannot understand why your surveyor would have raised the issue of the house not meeting current BRs at all as it is not relevant.

Here'a quote.

"The windows and doore are made of uPVC and onlyhave a head height of 1.8m on the ground floor;this is below current building regulations."

"The front door is an uPVC door with a head height of only 1.8m, this is below current building regulations of 2.1m"

"The window head heights are also 1.8m similarly they do not comply with current building regulations of 2.1m."

Thanks for your thoughts on this, I keep willing the phone to ring with a decision...then hoping it doesn't. I'm as good as ready for a knock back.

Why did the engineer raise these issues at all is the question you should ask of them? I wouldnt accept this- did you pay for this survey? Ring them and point out that the bank may well turn you down because they have included somethiing of no relevance on their survey and see what they have to say for themselves. Also fight it with the bank/ your broker- get your solicitor involved and ask her to intercede with them.

The surveyor should not have written the report as though current building regulations apply - it simply alarms the bank, and a careless underwriter might note only the non-compliance, and not the age of the house and the fact that the regs would not have applied at the time of construction. I've purchased two houses which would not conform to building regs, but would have been in compliance with the regs at the time of relevant construction or alteration, and providing they can be certified as "appear to have been constructed in conformance to the regulations would have applied at the time" or similar form of words, there's no problem (and my current mortgage is with BoI!).

Vanilla's totally correct, and frankly unless the bank has concerns about structural stability or the house is not currently habitable, then it would be absurd to refuse a mortgage because a hundred-year-old house doesn't meet contemporary building standards.

Sounds like I might well have something to fight back with then. I guess what worries me is the guy who arranged it has been brilliant and upfront with me the whole way through. It was all going so smoothly and I was actually worrying more about something silly about "us" being unmortgageable I never even considered that the house wouldn't be.

Granted it's not a perfect house but it's habitable and in need of work...part of the appeal.

I guess now I hope the underwriter knows their stuff and can see past the report to the solid structure and potential.