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AtW
24th October 2010, 21:51
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 (http://www.dailymail.co.uk/news/article-1323334/Homeowner-outraged-property-paid-84k-valued-just-1.html)

PRC1964
24th October 2010, 21:57
It's in the Daily Wail.

They should really make it part of the citizenship test that you can spot that a property price article in the Wail is as true as a manifesto pledge by an MP.

d000hg
25th October 2010, 07:22
It's not valued at £1. The mortgage provider refuses to issue a mortgage and for whatever reason this is how they do it... bizarre but not headline grabbing "Bank refuses to offer mortgage".
Anyone know why they do it this way, rather than just say "not interested"?

shaunbhoy
25th October 2010, 07:59
Anyone know why they do it this way, rather than just say "not interested"?

In order that alarmist publications like the Wail can up their circulation figures by attracting the attention of simpletons like AtW.

HTH

BoredBloke
25th October 2010, 09:43
looking on the bright side - it won't be hard rto become mortgage free. Best getting a flexible one so he can make overpayments though!

Sysman
25th October 2010, 09:51
It's not valued at £1. The mortgage provider refuses to issue a mortgage and for whatever reason this is how they do it... bizarre but not headline grabbing "Bank refuses to offer mortgage".
Anyone know why they do it this way, rather than just say "not interested"?

A euphemism for "can't sell quickly"?

On the other hand it could represent a fair assessment of what it could be like in 20 years' time.

minestrone
25th October 2010, 10:22
I know a lawyer for a 'bailed out bank', they put up a 700,000 grand mortgage for a new build penthouse in Edinburgh and then the developers sold the rest to the council for 'social housing'. Chap is obviously pissed off.

RichardCranium
25th October 2010, 11:27
*on a slightly related topic, re penthouse, Bob Guccione popped his clogs last week.Indeed - he even got a mention on Radio 4's Last Word, along with that Mandelbrot geezergeezer geezer.

thunderlizard
25th October 2010, 12:27
I know a lawyer for a 'bailed out bank', they put up a 700,000 grand mortgage for a new build penthouse in Edinburgh and then the developers sold the rest to the council for 'social housing'. Chap is obviously pissed off.
:happy
I'm sure the feeling will be mutual!