A homeowner was devastated when a building society refused to give him a mortgage - and valued his house at just £1.
Paul Rooney, 42, spent £10,000 on a new kitchen and conservatory after he bought the two-bedroom Victorian end-of-terrace for £86,000 in early 2007.
But the businessman was stunned when he applied for a mortgage on the property with Nationwide and valuation officers who visited the house gave it a meager £1 price tag.
Property experts claimed that £1 valuation was a sign of the mortgage lenders' nervousness about the state of the housing market.
Mr Rooney claimed that he was being 'hammered against the wall' by banks' refusal to mortgage the house in n the quite hamlet of Holmside, Durham.
He had hoped to add the property in 2007 to add to his portfolio of 33 other buy-to-let properties he has with his business partner Keith Widdrington.
Mr Rooney previously received a valuation of £120,000 which stated that the house would rise to £130,000 once the refurbishment had been finished.
The report from June 22 said that 'no specialist reports were required' and said that demand for renting properties in the area was steady.A neighboring property was later sold for £141,000 and Mr Rooney hoped for an offer of a bigger loan when he applied in September.
But a valuer working for Nationwide produced a report on September 21 which stated that the house was 'not habitable'.
It said that there were 'excessive moisture readings' in the ground-floor walls and that wood touching them could be 'affected by rot'.
The document also sought a further engineer's report on the stability of the roof.
But Mr Rooney - who had already put tenants paying £550 a month in the house - fears that he may have to sell more properties for low prices if banks refuse to lend.
He said: 'We are being hammered against the wall because banks simply don't want to lend to us.
'We can't survive like this for ever and if it keeps going we will have to sell properties even if the market value is low.'
A Nationwide spokesman said: 'Valuers are instructed to use a £1 valuation if the property is outside our criteria or if further reports or investigation is required.
'The property was valued on a buy-to-let basis and, as it was not habitable, we could not proceed.'
The spokesman said that even though a family was renting the house it made no difference to the assessment.
Source: Homeowner outraged after property he paid £84k for is valued at just £1 | Mail Online
Paul Rooney, 42, spent £10,000 on a new kitchen and conservatory after he bought the two-bedroom Victorian end-of-terrace for £86,000 in early 2007.
But the businessman was stunned when he applied for a mortgage on the property with Nationwide and valuation officers who visited the house gave it a meager £1 price tag.
Property experts claimed that £1 valuation was a sign of the mortgage lenders' nervousness about the state of the housing market.
Mr Rooney claimed that he was being 'hammered against the wall' by banks' refusal to mortgage the house in n the quite hamlet of Holmside, Durham.
He had hoped to add the property in 2007 to add to his portfolio of 33 other buy-to-let properties he has with his business partner Keith Widdrington.
Mr Rooney previously received a valuation of £120,000 which stated that the house would rise to £130,000 once the refurbishment had been finished.
The report from June 22 said that 'no specialist reports were required' and said that demand for renting properties in the area was steady.A neighboring property was later sold for £141,000 and Mr Rooney hoped for an offer of a bigger loan when he applied in September.
But a valuer working for Nationwide produced a report on September 21 which stated that the house was 'not habitable'.
It said that there were 'excessive moisture readings' in the ground-floor walls and that wood touching them could be 'affected by rot'.
The document also sought a further engineer's report on the stability of the roof.
But Mr Rooney - who had already put tenants paying £550 a month in the house - fears that he may have to sell more properties for low prices if banks refuse to lend.
He said: 'We are being hammered against the wall because banks simply don't want to lend to us.
'We can't survive like this for ever and if it keeps going we will have to sell properties even if the market value is low.'
A Nationwide spokesman said: 'Valuers are instructed to use a £1 valuation if the property is outside our criteria or if further reports or investigation is required.
'The property was valued on a buy-to-let basis and, as it was not habitable, we could not proceed.'
The spokesman said that even though a family was renting the house it made no difference to the assessment.
Source: Homeowner outraged after property he paid £84k for is valued at just £1 | Mail Online
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