Timber Frame with Knauf Render System mortgage issues

[Rusty]

Hi,

 

I completed a new build last year and was fortunate enough to be able to borrow money from family to complete the build, not I am trying to mortgage it and have hit a blocker on the fact that many mortgage companies don't like Timberframe construction with a modern render system outer leaf. 

 

We used a closed panel Timber Frame which was then battened out and had Knauf Aquapanel and Knauf render applied to it, I am told by various people at Buildstore this is one of the best Render systems on the market and I am trying to find people who have been through mortgaging these types of build and who they used for the mortgages.

 

I find it so frustrating how Lenders are so far behind the new techniques which are often a necessity to meet building codes.

[Mr Punter]

I think you should be fine with the battened cavity, and the system is BBA approved.  The render systems that have been more troublesome are those with no cavity, incorrectly applied.

 

As the house is completed there is no need to mention self build and don't offer detail that is not required, so when they ask for what the building is constructed of you can say rendered walls and tiled pitched roof.

[ProDave]

The issue is the usual question is something like "is the house built of brick or block under a tiled or slate roof"

 

Normally timber frame with a masonry outer skin satisfies that. But no outer masonry skin and it becomes "non standard construction" in the eyes of many lenders.  I doubt they care which render system is used, it is the fact it is not applied to masonry that troubles them.

 

You could try saying "timber frame, tiled roof, render exterior finish" and see what they say?

[newhome]

46 minutes ago, ProDave said:

The issue is the usual question is something like "is the house built of brick or block under a tiled or slate roof"

 

Not a lender but a building insurance policy and that was exactly the question I was asked. 

 

47 minutes ago, ProDave said:

 

Normally timber frame with a masonry outer skin satisfies that. But no outer masonry skin and it becomes "non standard construction" in the eyes of many lenders.  I doubt they care which render system is used, it is the fact it is not applied to masonry that troubles them.

 

And yes when I said timber frame I was asked if it had a brick or block outer skin. When I said yes she said that was fine. I asked if they would cover me if it didn’t and she said no. 

 

 

[Rusty]

Interestingly when i insured it i said it was Timberframe with a rendered exterior and we never got into what was under the render.

 

I know after this whole experience unless something changes in the industry i will probably never build Timber frame or this render system again due to being in this position.

 

Someone suggested we may not have this problem if we were mortgaging it as a residential property as some of the big lenders such as Halifax and Nationwide understand it but they don't do BTL apparently.

 

[newhome]

And not a resolution as such but a similar thread here:

 

https://www.mumsnet.com/Talk/property/2652673-Mortgage-for-Timber-Framed-Eco-House

 

Personally I would try a mortgage broker who covers ‘non standard’ construction. 

 

[Rusty]

I've heard so many times and not just from the manufacturers but from Building regs, Architects etc that these render systems are common across the UK in areas where the weather can be bad due to speed to complete the build....not sure i believe that otherwise Clydesdale who we were trying to mortgage with would lend against them

[newhome]

I have render on my closed panel timber frame house but it has a brick skin as do many of them. 

[Rusty]

3 minutes ago, newhome said:

And not a resolution as such but a similar thread here:

 

https://www.mumsnet.com/Talk/property/2652673-Mortgage-for-Timber-Framed-Eco-House

 

Personally I would try a mortgage broker who covers ‘non standard’ construction. 

 

 

Thanks, i'll have a read. It sounds exactly like ours...I think it's a combination of lending criteria and surveyors not knowing what they're looking at. the eSurv Surveyor asked so many times what it was and how it was done. In my business if we don't keep up to date on new technology for the industry we'd soon be out of work...doesn't seem the case this business

 

[newhome]

Maybe the timber frame company or the architect can advise too? They surely can’t be specifying unmortgageable properties? 

[mike2016]

Been down this road - all the Banking cost templates I found in Dublin, Ireland allowed for Timber Frame but then had an asterix - "Standard timber frame structure with traditional block exterior". I challenged each bank on this and found two who came back and said on review, yes, they would offer a self build mortgage for cement panel / render rather than masonry outer leaf. 

Insurance companies were also a pain - only got 1 or 2 interested and at an inflated price, claiming timber frame is more expensive to repair. 

Ring around and challenge them might necessary.....

[Rusty]

I don't know whether Direct Line cover Ireland but they have an option for Timber Frame with Plaster panels...thats who we insure it with and they were really reasonable from memory

On 01/10/2018 at 20:05, mike2016 said:

Been down this road - all the Banking cost templates I found in Dublin, Ireland allowed for Timber Frame but then had an asterix - "Standard timber frame structure with traditional block exterior". I challenged each bank on this and found two who came back and said on review, yes, they would offer a self build mortgage for cement panel / render rather than masonry outer leaf. 

Insurance companies were also a pain - only got 1 or 2 interested and at an inflated price, claiming timber frame is more expensive to repair. 

Ring around and challenge them might necessary.....

 

[mike2016]

Nope, they're UK only, just queried with them. I'm sure there are a few more insurance providers out there who do but I'll have to scour the internet for a bit! Thanks for the tip though.