Mortgage - receiver sale where unauthorised development

sarachryan

I'm interested in purchasing a property which a receiver is selling. The EA isn't saying anything but it's clear, and I am certain, that there is an unauthorised extension which is no longer subject to enforcement (it's there over the 7 years).

I have to get a mortgage to purchase this property and before I go down the road of paying solicitors etc can anyone tell me whether the Banks will loan where this issue arises. I obviously can't say yet but I am presuming the vendor's solicitor will refuse to give the usual undertakings and warranties (if that is what they are called).

Is there any solution to this? Will the bank accept that it's unenforceable and give the mortgage?

I can't apply for retention until I am the owner and the receiver isn't going to apply for retention. Although not exempt the unauthorised development is not significant and retention would undoubtedly be granted or alternatively it could be knocked easily.

So does that mean the house will just go to the highest cash buyer?

Any help much appreciated

Gumbo

What LA is the house in?

sarachryan

DCC

DOCARCH

sarachryan wrote: »

So does that mean the house will just go to the highest cash buyer?

I'd say that's pretty much how it will pan out.

sarachryan

Ok. Thanks

Carawaystick

If the land is zoned residential, the bank should loan to that value.
You can apply for pp without being the owner, as long as the owner allows

sarachryan

It's zoned residential. The unauthorised development is a form of extension. Easily removed if necessary. I think it's easily fixed but probably is bank loaning.

Gumbo

sarachryan wrote: »

DCC

If you want to pm me the address I'll check on Tuesday for you if that's not too late.