Unacceptable wall types
- Single skin is generally unacceptable except in very small areas
- Cross-wall construction (with limited exceptions).
- Large panel systems.
- Pre-1989 steel-framed houses.
- Timber-framed homes without masonry cladding (unless MMC with a warranty).
- Mundic-affected properties (unless certified as A1 or A2/A3, Mundic specialist report required)
- Prefabricated post-war housing.
- Properties built with high alumina cement.
Unacceptable property types
- Properties not fit for immediate letting or with EPC ratings below E (BTL only)
- Shared ownership
- Homes with tenancy restrictions, age restrictions, agricultural ties. Time-limited occupancy (e.g., holiday homes), or those that are park homes, caravans, log cabins, or houseboats.
- Multi-unit blocks & semi commercial properties
- Homes built entirely from wood,
- 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
- Homes with unacceptable cladding (EWS1 A3 or B2)
- Homes with more than 5 acres
- 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 below the minimum value threshold (£100k flats, £70k houses).
- Right-to-buy properties still in any pre-emption period
- BISF flats and houses, even where the property has been re-clad.
Tenure and size
- Leasehold flats require an unexpired lease term of 85 years or more. 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
Flats
- Flats with 4 storey’s or more require lift access
- Flats requiring an EWS1 form must provide a valid EWS1 form to support the property valuation.
We will consider Ex-Local Authority Flats up to 85% LTV.
- Blocks must be in good residential areas with sustainable demand for owner-occupation.
- Flat conversions are generally acceptable. Conversions that are up to 10 years old must have an appropriate structural warranty and have the required planning consent/building regulation approval.
- Commercial to residential conversions are acceptable where considered to be readily saleable and mortgageable
- Freehold flats are not acceptable
- Leasehold flats or maisonettes above shops may be considered if:
- They are self-contained with a separate leasehold title.
- Services are separately metered.
- Separate and suitable access is provided.
- The valuer confirms good saleability and mortgage ability.
Ground rent and service charge
Outside London
Ground rent is £250 max, with a review period of at least 10 years
Services charges: Generally 1% considered acceptable but can be up to 1.5% depending on facilities - lift, concierge, gym, communal grounds etc
Inside London
Ground rent is £1000 max, with a review period of at least 10 years
Services charges: Generally 1% considered acceptable but can be up to 1.5% depending on facilities - lift, concierge, gym, communal grounds etc
Annexes
Properties with annexes capable of being sub-let and with a separate Council Tax rating are not acceptable. Annex occupied by immediate family member can be considered.
Properties with more than one kitchen would indicate that the property will be occupied as more than one residential unit and therefore will be unacceptable.
Flat roofs
- Flat roofs on houses are acceptable up to 50% of the total roof area, subject to a minimum of 10 years manufacturers guarantee.
- Flat roofs on houses are acceptable over 50% of the total roof area, subject to a minimum of 25 years manufacturers guarantee.
- 100% flats roofs on blocks of flats are acceptable.
Properties located near commercial
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:
- Properties adjacent (next door) to or directly above hot food takeaways.
- Properties adjacent (next door) to or directly above drinking establishments.
- Properties adjacent (next door) to or directly above restaurants and cafes can be considered subject to valuer confirming that there is no negative impact on saleability and mortgage ability of the property
New builds
The following warranty schemes are acceptable to the Society:
- 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 (residential and bespoke properties, Q Assure)
- Advantage HCI New Build Scheme
- One Guarantee
- ABC+
- ARK
- Build Warranty Group
- Professional Consultant’s Certificates
Retrospective warranties are not acceptable.
Disclosure of incentives forms are required for each new build purchase. Incentive up to 5% of the property value are acceptable on foreign national cases only
