13) Assessing the property

Question 1

What informn is reqd when assessing a prop for mortg by the lender?

Answer 1

Address/plot no, + location
Purchase price
Type of prop - hse/bungalow, det/semi/terraced, method of construction etc
Tenure - freehold, leasehold, commonhold
No & type of rooms and accommodation
Whether vacant possession - presence of tenants reduces value
alterations proposed - details, cost, how funded
Use of prop - resi, busi, mixed etc
Name of builder and whether member of NHBC/similar protection scheme - for new and <10yr old builds
Inspection arrangements for self-builds - std and qly applied at each stage if not NHBC member - w approp strl warranty inspector, builder w approp insu cover eg architect, strl engr

Question 2

How might disputes affect prop value?

Answer 2

Conveyancer conducts due diligence. Vendor shd disclose disputes abt
boundaries, trees/hedges, access, noise

Question 3

Problems w freehold tenure?

Answer 3

easements/covenants will affect value, so does sitting tenants, flying freeholds too
Freehold flats are not usually approved by lenders

Question 4

Problems w leasehold tenure

Answer 4

• prop may contain restrictions/obligations
• length of remng lease
• if former local authority flats concerns abt type of estate, whr situated, type of construction, if tower block, access and proposed dev, propor of now privately owned flats and maintenance of bldg