Key criteria
Flats must be fully self-contained.
The property must have its own kitchen, bathroom/WC and living accommodation.
The flat must have private access or access via communal hallways, staircases or lifts.
There is no maximum storey limit.
Studio flats may be acceptable, subject to a satisfactory valuation and meeting a minimum floor area of 30sqm.
Flats above the fourth floor must have lift access.
Converted flats less than 10 years old must have an appropriate structural warranty and evidence of the required planning and building regulation approvals.
Flats must be held on a leasehold basis.
A valid EWS1 form may be required where identified through the valuation process.
Blocks must be in good residential areas and where there is a sustainable demand for owner occupation.
Commercial to residential conversions are acceptable where considered to be readily saleable and mortgageable.
The following flat types are not acceptable
Flats within blocks with open deck or balcony access.
Flats above retail/commercial premises (including hot food takeaways, pubs, bars or other drinking establishments) will not be acceptable unless recommended as acceptable by the Valuer due to strong demand and saleability.
Flats, including studio flats, with a gross internal floor area of less than 30sqm.
Serviced flats/apartments.
Ground rent and service charges
Service charges should not exceed 1% of the property's value.
Ground rent should not exceed 0.1% of the property's value.
Ground rent review periods should be at least every 10 years.
Ground rent should be linked to RPI where increases apply.
Leasehold requirements
For buy-to-let lending:
A minimum of 50 years must remain on the lease at the end of the mortgage term.
Minimum property value
A minimum property value of £100,000 is required on flats.
Key criteria
A new build property is one that has been built or converted within the last 2 years and has never been sold.
The property must benefit from an acceptable new build warranty. We accept the following warranties.
Accepted warranty schemes
NHBC.
Premier Guarantee, including LABC.
Building Life Plans Ltd (BLP / Allianz Guarantee).
Buildzone.
Checkmate / Castle 10.
FMB / Build Assure New Home Structural Defects Insurance.
International Construction Warranties (ICW).
Global Home Warranties Structural Defects Insurance.
Protek New Home Warranty.
The Q Policy, including Q Assure.
Advantage HCI New Build Scheme.
One Guarantee.
ABC+.
ARK.
Build Warranty Group.
Retrospective warranties are not acceptable.
Builder and developer incentives may be accepted up to 5% of the property value.
Offers are valid for 6 months, an offer can be extended for up to 3 further months where required.
Maximum LTV
Maximum loan to value is 80% on both houses and flats inclusive of fees.
Acceptable wall types
Acceptable roof types
Flying freeholds
Unacceptable property types
BISF flats and houses, even where the property has been re-clad.
Homes with more than 5 acres.
Homes with any tenancy restrictions, age restrictions, agricultural ties. Time-limited occupancy (e.g. holiday homes), or those that are park homes, caravans, log cabins, or houseboats.
Homes with unacceptable cladding (EWS1 A3 or B2).
Houses valued under £70k and flats valued under £100k
Multi-unit blocks & semi commercial properties.
Properties not fit for immediate letting or with EPC ratings below E.
Properties located in areas with coastal erosion or high flood risk without protection.
Properties near pylons, substations, or phone masts where this affects saleability.
Properties where office staff are employed, business rates are payable, or clients call frequently as though attending business premises.
Properties not connected to mains services unless there is a septic tank or cesspit in the grounds of the property (or the solicitor confirms rights of access if situated on adjacent property).
Properties with more than one kitchen where it would indicate that the property will be occupied as more than one residential unit.
Properties on a Right to Acquire scheme
Right-to-buy properties still in any pre-emption period.
Shared ownership
Unacceptable wall types
Cross-wall construction (with limited exceptions).
Criss-Cross properties / Tyneside properties
Homes built entirely from wood.
Large panel systems.
Mundic-affected properties (unless certified as A1 or A2/A3,
Mundic specialist report required)
Prefabricated post-war housing.
Pre-1989 steel-framed houses.
Properties built with high alumina cement.
Single skin is generally unacceptable except in very small areas
Timber-framed homes without masonry cladding (unless MMC with a warranty).
Valuers will assess properties near commercial premises to decide if they are acceptable for lending.
Unacceptable properties are likely to be where they are above or adjacent to commercial properties likely to cause a nuisance through noise, smell or unsocial hours e.g. pubs, food outlets, restaurants, petrol stations, cattery/dog kennels, launderettes or night clubs.
The following is not acceptable in any circumstances:
Leaseholds are subject to a minimum remaining lease of:
Buy-to-let: 50 years at the end of the mortgage term.
Freehold flats are not acceptable.
Houses and bungalows require a minimum internal floor area of 50 sq metres.
Flats and studios require a minimum internal floor area of 30 sq metres.
Commonhold tenure is not acceptable.