Property and construction

Walls

• Cavity outer walls of brick/reconstituted stone/block (including rendered walls) with inner walls of brick or block.
• Timber framed property with outer walls of brick/reconstituted stone/block (including rendered walls), built 1970 or after.
• Solid stone (e.g. limestone, granite).
• Cob - or any regional variant (for example cobb, clom and Wychert).

Roof

• Tile (concrete)
• Slate
• Thatch (reed or straw)
• Felt, asphalt
• Copper, lead

Spray Foam Insulation

If spray foam insulation has been fitted in the wall voids of the property, then the valuer will decline the property.

The valuer will decline the property at first, where spray foam has been installed in the rafters, frame, and/or underfloor structure. However, we'll reconsider with evidence of either:

Confirmation the installation of the foam is in accordance with the manufacturer’s recommendations, and

• The full pre-survey suitability report including details of the materials/isolating card
• The condensation risk assessment
• Evidence of BBA certification
• The warranty/guarantee provided of the installation and insulation. This warranty must be transferable upon sale of the property to the new owners.

Or 

A Chartered Building Survey (FRICS or MRICS qualified) should be instructed to undertake an invasive inspection. They'll need to report on the frame integrity. Where it requires remediation or foam removal work, you will need to include an estimated cost.

There are many properties built using a variety of other construction methods. Lending terms vary depending on construction types and if a repair scheme, where appropriate, has been used. Please contact your usual Service Centre where a property is of non-traditional construction with the following details for further advice:

• The name of the type of construction
• Year built (if known)
• Flat/terrace/semi or detached
• Details of any repair scheme if appropriate and if the scheme applies to the whole block (e.g. the whole terrace/both semis)

The exact construction name is important as lending terms may differ between different types and year built. For example, our lending terms differ between Gregory, Gregory Drury System 3 and Gregory Housing. All three have different lending terms, and it is important to ensure you give us the full and accurate name to avoid us giving incorrect advice.

Modern Methods of Construction

We're supportive of development schemes which incorporate Modern Methods of Construction (MMC). Although an MMC scheme must display sufficient robustness, technical rigour and suitability for its location. Due to the wide and changing range of products in the market, we now treat independently each development (not system). Please provide the full information below to enable us to consider your development:

• Principal construction materials - e.g. steel frame, timber frame, CLT (Cross Laminated Timber)
• Details of the roof and wall finishes - you will need to provide confirmation/evidence of their British Board of Agrément (BBA) or similar accreditation. This should be for a minimum of a 30 year lifespan (including fixings)
• Warranty details - this should be a mainstream warranty accepted by Nationwide (preferably “NHBC Accepts”). We also require confirmation whether the system has Buildoffsite Property Assurance Scheme (BOPAS) accreditation
• Any available site specific information regarding the development.

We'll lend on a security with an Airspace Lease providing it meets the minimum requirements documented in the UK Finance Lenders' Handbook (opens in a new window). Or where the vendor owns the panels. Other arrangements are not acceptable.

The word duplex can be used to denote several property types. Below you can see the circumstances for each one:

It can refer to a specific structure type e.g. Duplex Foamed Slag.

Maisonettes are where there are two leasehold properties each covering two storeys in a block of four storeys. However, in some developments they are referred to as duplex houses/maisonettes.

These buildings can sometimes be known by the name of "Over and Under" properties. They were built up to four or five storeys high in steep hillside terrace form, on a similar arrangement to maisonettes, with each property having ground level access. Some involved back to back arrangements. Construction is normally of stone and quality of construction varies from poor to very good.

Essentially these properties are flying freeholds, and normally would not form an acceptable security for the Society. However, the Society will accept these Duplex properties provided the following procedures are strictly adhered to:

• Prior to valuation, the conveyancer must confirm the property is in an area covered by the West Yorkshire Act 1980.

The valuer has strict criteria to judge that the Duplex properties are acceptable.

We will consider properties with caution any Japanese Knotweed growing within the vicinity. They will be subject to the following terms:

If Japanese Knotweed is:

• actually causing visible material damage to a structure, OR
• not actually causing visible material damage, but is still likely to prevent use of or access to amenity space, OR
• visible on adjoining land, but is evidently unmanaged and has the potential to significantly impact the subject property/grounds

Then the applicant will be required to obtain a specialist report in respect of eradicating the plant. This will include an insurance backed 5-year warranty against re-appearance of the plant. If necessary, we'll require repairs to the property and services for the valuer to make a full assessment of the property's suitability.

However, if Japanese Knotweed:

• isn't causing visible material damage to a structure and not likely to prevent use of or restrict access to amenity space, OR
• is visible on adjoining land but managed with no potential to significantly impact the subject property/grounds.

Then we'll require written confirmation from the applicant confirming that they're aware of the presence of this invasive plant. And that it could have adverse effects on the property should it spread closer. The applicant should seek their own independent professional advice regarding the risk this plant might impose.

Non New Build
Flats

The maximum LTV on non New Build flats (with a minimum lease term of 90 years) is:

• 95% for purchases 
• 90% for remortgages

Blocks of flats up to
five storeys high

All flats in blocks and Scottish tenements not exceeding five storeys* in height, will be acceptable at the discretion of the valuer. This is subject to the valuer accepting the guidelines and restrictions on non-traditional construction.

The instructed valuer will then report on whether the flat satisfies our requirements in terms of construction, marketability and any other associated matters.

Flats in blocks over 4 storeys high should have a lift. This also applies when the subject flat is on the lower floors. We can make some exceptions, but this is subject to marketability and valuers’ recommendation.

*Five storeys means a ground floor with four floors above, ignoring any basement.

Flats over five
storeys

We won’t accept former local authority flats in blocks of more than five storeys. Or maisonettes and Scottish tenements in blocks of more than five storeys that were, or still are in local authority ownership.

Flats in the same
block as commercial premises

The acceptability of a flat in the same block as commercial properties will depend on:

• Nearby commercial activities - we may not be prepared to lend on the flat, if any commercial activities in the block are likely to cause a nuisance by virtue of noise, smell or unsocial hours.
• Access - Some flats over commercial premises have unsatisfactory access. Due to this we may not be prepared to lend if any of the below factors apply:
• involves passing through the business area
• passing through yards containing commercial refuse
• or using poorly maintained external stairs.

These are in addition to the usual construction and marketability criteria.

We recommend you contact us with as much information as possible at enquiry stage. This will allow us to contact a valuer for advice before issuing formal valuation instructions.

The valuer must consider the majority of the flats in the block to be suitable securities for us to lend.

Coach house
flats

Coach house flats are acceptable subject to a satisfactory valuation.

A coach house flat is a freehold flat, which is:

• the only flat in the block
• built above the garage and/or an access way.

Freehold flats and
maisonettes in England,
Wales and
Northern Ireland

In general, we won't accept:

• freehold flats or maisonettes
• or where each flat in a block has its own separate freehold title.

For most cases described as a 'freehold flat' there is usually no lease on the occupied flat. And the occupier of the flat will most likely be the freeholder of the whole block.

Acceptable

• The flat without the lease is a suitable freehold security, as long as:
• there are no more than four flats in total.
• And the remaining flats are all subject to long leases.

Unacceptable

• If there are five or more flats in the building, we will treat the application as a commercial proposition.
• If you are letting the remaining flats on shorthold tenancies, you must regard the application as a commercial proposition.

Studio flats

Studio flats are acceptable to Nationwide with no minimum floor area requirement. This is subject to marketability and valuers’ recommendation.

Flats and Houses - we require a minimum unexpired lease of 55 years at application. This along with a minimum unexpired lease term of 30 years after mortgage term ends.

Where your client is looking to purchase a new longer lease or lease extension, we'll process the application using the details of the new/extended lease.

We'll allow lease extensions on new and existing lending, if it's completed under the Leasehold Reform Act.

Flats and Houses - a minimum unexpired lease term of 50 years after mortgage term ends.

We'll only accept Local Authority flats/maisonettes where the Lease term is:

• in excess of 100 years and
• capable of extension.

Flats - a minimum unexpired lease term of 50 years after mortgage term ends.

Houses - refer to your usual Service Centre.

• Bed & Breakfast (no more than 2 bedrooms allocated to paying guests)
• Live/Work Units
• One room used as an office/consulting room. (where necessary with a second room used as a waiting room)
• Properties that have a single annexe used for non-commercial purposes.
• It would be acceptable if the annexe was let on a short term assured or private residential tenancy basis (Scotland) or as a holiday let.

We'll accept where the business income is required to support the mortgage (subject to it satisfying our normal underwriting requirements).

• Caravan park
• Garage - petrol and/or car sales
• Holiday lets for over 18 weeks per year (this is acceptable for an annexe)
• Hotel
• Industrial Unit/Workshop/ Storage Yard/ Warehouse
• Kennels/Cattery
• Office Unit (unless only one room used as an office/consulting room)
• Post Office/Public House/Club
• Restaurant/Takeaway/Café/ Shop
• Working Farm

We'll consider Mortgage applications on Scottish Islands for properties located on:

• The Orkneys
• The Shetlands
• Arran
• Bute
• Harris
• Islay
• Jura
• Lewis
• Mull
• Skye

Individual consideration will be given to properties on the following Scottish Islands:

• Barra
• Benbecula
• Coll
• North/South Uist
• Tiree