Buying a timber framed or complete timber property can cause a few problems in today’s financial climate despite the obvious ecological benefits of these types of properties particularly if you are looking for funds to assist with the purchase.

There are some lenders who will look to possibly to fund such purchases however apart from the prospective clients own credit rating the type of property will be very carefully looked at some of the main points asked are listed below.

How old is the property- some lenders will consider timber properties if they have been recently constructed and carry some type of modern building certificate, they will particularly look at any fire certificates that exist. A modern built property is much more likely to get funding than a 1930 s chalet type building that probably requires a lot of renovation work.

What is the energy efficiency of the property- some lenders who consider timber properties will be particularly keen to see the Energy Performance Report and expect any prospective buyer to undertake to carry out any work to improve its energy performance.

Does the property sit on its on land title- many timber properties can be situated on parks or other similar environments where the buyer owns the building but the land its on is actually leased, this is not such good news particularly if the lease does not have a long time left on it.

Can the property be moved easily- perhaps a strange one but very relevant as if the building is of a similar size to a caravan then potentially a large lorry could be used to move the property to a new location without the lenders knowledge, however if it is secured into the ground and set on foundations then this is less likely and deemed to be less of a risk.

Quite obviously the newer the property the better the chance of obtaining borrowing against it, this is particularly the case with many older properties there could be an element of asbestos used in the construction which whilst common place many years ago is now considered a hazard to health and may need to be removed by a specialist company.

Obvious things to look out for when considering such a property is the condition of the woodwork i.e. dampness or of course wood worm infestation, any sign of this and a surveyor at the very least would recommend the undertaking of a specialist timber report at the very least. Properties built during or just after the war years or in the following years are known to be more likely of inferior quality due to the scarce supply of good quality timber during this time.

It is quite common in certain circumstances for a valuation to be based mainly on the value of the land alone as it could be deemed that the timber construction which sits upon it carry’s very little value but the land may have development potential, in fact many purchases of this type are completed with the intention of completely rebuilding the property to a more traditional construction.

Many timber properties can be found in quite breathtaking scenery and in most cases to construct a more traditional building could completely take away the character of the plot and its surroundings, in fact there may well be local conservation laws preventing the removal of a timber constructed building.

Any lender asked to consider lending on such a property (as with normal construction properties) would consider how easy it would be to dispose of the property should they be forced to reprocess it (not a nice thought) but lenders have to consider it, things such as access and rights of way will always be carefully checked particularly in any rural setting.

As with most things it is prudent to seek the advice of specialist brokers in this field who have access to the whole of market so you can assure you are getting the best advice available.

    Posted in Mortgage from Investor on 26. Nov. 2008