Property and construction    

We will lend on flats in blocks and Scottish tenements up to five storeys, subject to the discretion of the valuer. The valuer will follow our guidelines and restrictions on non traditional construction and report on whether the flat satisfies our criteria for construction and marketability.

Flats in blocks over four storeys high should have a lift, even if the flat is on the lower floors of the building. We can make some exceptions, depending on marketability and the valuer's recommendation.

We won't accept former local authority flats, maisonettes, or Scottish tenements in blocks of more than five storeys. In Scotland, this also applies to flats that are currently owned by the local authority.

We may not lend on a flat over commercial premises if the access is not satisfactory.

For example, if getting to the flat involves passing through or using:

• the commercial area
• areas containing commercial refuse
• poorly maintained external stairs

Commercial activities in the block that are likely to cause a nuisance with noise, smell, or unsocial hours may mean we will not lend on the flat.

A coach house flat is a freehold flat which is the only flat in the block. It is usually built above the garage and/or an access way.

We will lend on coach house flats, subject to a satisfactory valuation.

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

We will lend on the flat without the lease if there are no more than four flats in the block and the remaining flats are all subject to long leases.

In general, we won't accept freehold flats or maisonettes, or where each flat in a block has a separate freehold title.

We will treat the application as a commercial proposition if:

• there are five or more flats in the building
• the applicant is letting or intends to let the remaining flats on assured shorthold tenancies.

We will lend on studio flats and have no minimum floor area requirement. As with all mortgages, this is subject to a satisfactory valuation.

If Japanese Knotweed is growing on or near a property, we will consider it with caution.

Is the knotweed:

• causing visible material damage to a structure?
• likely to prevent use of or access to amenity space?
• visible on adjoining land and evidently unmanaged?
• does it have potential to significantly impact the property or grounds?

In any of these cases, the applicant will need to get a specialist report about eradicating the plant. This needs to include an insurance backed 5-year warranty against re-appearance of knotweed. If necessary, we'll require repairs to the property and services for the valuer to make a full assessment of the property's suitability.

Is the knotweed:

• not causing visible material damage to a structure?
• not likely to prevent use of or restrict access to amenity space?
• visible on adjoining land, but managed?
• is there with no likely significant impact to the subject property or grounds?

In any of these cases, we'll need written confirmation from the applicant that they're aware of the knotweed and understand it could have adverse effects on the property if it spreads. The applicant should seek independent professional advice regarding future risks imposed by this plant.

The applicant must use the entire property or land for their own residential purposes.

We'll give special consideration to large acreage/properties.

We can accept some part commercial properties on normal residential terms, subject to satisfactory valuation:

• Bed & Breakfast with no more than two bedrooms for paying guests
• Live/Work units
• One room used as an office/consulting room with a second room used as a waiting room if needed.
• One room used as a hair salon, with one chair
• Properties with a single annexe used for non-commercial purposes. For example, used by a relative. If the annexe was let on a short term assured tenancy basis or as a holiday let, we can accept this.

We will not lend on residential terms for any other form of commercial use, including:

• Properties where the planning use class is commercial or any other non-residential use.
• Where employees not party to the mortgage work in the property.
• Where the applicant is involved in commercial activity next door to the property. 
• Caravan parks, camping or glamping sites, or any combination of these
• Garage, petrol, or car sales
• Holiday lets of the whole property for over 18 weeks per year
• Hotel
• Industrial unit/workshop/storage yard/warehouse
• Kennels or cattery
• Office unit larger than described above
• Post office
• Pub or club
• Restaurant/takeaway/cafe
• Shop
• Working farm or land let on a farming tenancy

If you have any questions about whether the commercial use of the property is acceptable, contact our pre application team.

We'll lend on a property with solar panels that includes an airspace lease, if:

• it meets the minimum requirements documented in the UK Finance Lenders' Handbook or
• The vendor owns the panels. 

Other arrangements are not acceptable.

Spray foam in the wall voids

We will not lend on the property.

Spray foam in the rafters, frame, and/or underfloor

The valuer will decline at first. However, we'll reconsider with evidence:

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 Surveyor (FRICS or MRICS qualified) should be instructed to undertake an invasive inspection. They'll need to report on the frame integrity, any remediation or foam removal work needed, and an estimated cost for this work.