Will the property in this BuildingSurvey in London fail to attract lenders?

Will the property of this Home Buyers Survey in London fail to attract lenders?

A Residential Surveyor found little to complain about in this recent Home Buyers Survey in London. The survey identified no serious defects that would require immediate attention.  Instead, attention was drawn to the fact that homes of this type are not typical in the mortgage market, which could reduce this property’s marketability.

Home Buyers Survey in London find potential marketing concerns

The property is situated in a large block of flats in the prominent area of North Finchley, affording good views of the capital. However, properties of this type are less likely to attract the attention of mortgage lenders, even in an area of this status. In fact, some lenders have a blanket rule against selling large or steel framed buildings and the Surveyor noted that this could make it harder to sell this property to a buyer.

The good news is that the Surveyor mentioned that preliminary enquiries confirmed that some mortgages have been granted at this block. Therefore, this should be comforting news for both the seller and the prospective buyer of this property.  

Is the original valuation too high?

The HomeBuyer Report in London suggested that the initial valuation of £560,000 was too high. Although not considered an unreasonable price for the purchase, the Residential Surveyor reduced the valuation to £540,000, which is based on his overall opinion of the market value of flats of this style and age at this area. This particular flat did offer certain features, such as a corner position and an attractive interior, which meant that it had a higher market value than other flats at this block.  

Other issues that could deter lenders

Other problems that the Home Buyers Survey in London found was that block housed a number of commercial venues, which could also discourage lenders. The relatively thin property market at the present time will also create more challenges for buyers, particularly if they are planning to re-sell their properties as an investment. In light of the current valuation, it is unlikely that the buyer would make a profit by re-selling this property in the short term.