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Communal heating system

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  • Communal heating system


    I own a house that is ex-local authority and part of a small block of 6 other houses. It's a freehold property but the heating and hot water is provided by a communal boiler, housed in its own building. This is managed by an arms-length company rather than the local council and I pay a monthly service charge to them.

    I have a buyer for the house and the sale has progressed to the point that we were almost ready to exchange. However, my buyer's lender has stated that will not provide a mortgage because of the communal heating system - they feel that this would affect the re-sale value in the event that the property had to be repossessed. A number of other lenders have apparently said the same thing.

    However, I have had two mortgages on the property - once when I bought and then when I remortgaged - from two different lenders and neither raised the heating system as an issue. In addition, two other houses on the block have had mortgages taken out in the last two years with two other different lenders - again, the heating system was not a problem in either case.

    Has anyone heard of similar cases to this? Why would a communal heating system be a problem for one lender and not another? Indeed, why would the heating system affect the resale value? It certainly didn't affect the price of the property when I put it on to the market.

    If anyone can help shed any light on this I would very much appreciate it!



  • #2
    I've got to admit, if the property has a history of sale, and similar properties also have a history of sale, then it suggests perhaps this is an issue the buyer should raise with their lender - or perhaps change lender if they really want the property.

    Properties with communal features aren't at all new - just think of all those flats and apartments - even detached property estates - where they have private gardens and private roads, serviced either among the residents themselves, or already have maintenance contracts awarded to third-parties.