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So why do shoppers find it hard to get a mortgage on skyscrapers?
One of the benefits of staying in a multi-storey building can be to enjoy scenic vistas, (relatively) fresh breezes and low levels of annoyance from penthouses, but it can be very hard to get a mortgage on many skyscrapers. Whether you want to buy a house for yourself or an asset to borrow doesn't even make a difference - the loss of appetite among the overwhelming majority of mortgage banks is the same: thanks, but no thanks.
Said Steve Goodall, General Manager of Legal & General Surveying Services: "The issue many lenders face with newer trends is that they have very high rates of leased employment, which can lead to problems with unit managment and bad conditions for servicing and repairs. Most of the new London development, even those covering 20 floors and more, is not a big issue for lenders," he said.
The only thing to be aware of is that each lending entity has a maximal suspension in a particular cluster and does not want to loan on more than say 10 percent of the apartments in the cluster. Apartments were bought by chair owners who jumped on the buy-to-rent car, did not follow the schedule, and then could not rent out real estate because they had no clue what the tenants' demands in the area would be - horrible, as it sometimes turned out.
The lenders had burnt their hands and the cicatrices have not yet completely cured. Craig Hall, New Building Project Leader at Legal & General, said: "There is a definite absence of lenders' choices for clients who want to buy seven-story high-rise apartments. Ex-Local authorities large scale panels of skyscrapers typical of more than 20 floors continue to be a concern for the vast majority of lenders and many make sweeping limitations that affect newer privately owned state-of-the-art blocs in premier locations.
A number of hybrids exist that allow loans to be granted up to certain storeys within a skyscraper, e.g. up to the 8th storey, but not beyond. Halifax, Kent Reliance, NatWest and TSB are the only lenders who routinely finance ex-local government buildings in skyscrapers - and that in itself is a challenge.
A small number of lenders are more likely to refuse mortgages because they have already given up on several mortgages within the same property and do not want an undue burden. The lenders will also want to see that more than 50 percent of homes today are private and block buildings with five or more storeys have a working elevator.
This all makes many lenders just want to washed their hands of it. However, Lenders allege that they are trying to be more agile in providing mortgage financing to borrower who want to survive the high lives. We can and want to walk over seven floors in towns like London, provided we receive an expert opinion.
Santander will borrow up to 95 per cent LTV for housing up to and inclusively 350,000 and up to 85 per cent LTV for over 350,000.