I will be a little vague to not fully dox myself.
I live in a newish build (5 years old) mid rise apartment block that is a Rent to Buy scheme. It is the private arm of a social housing association so doesn't take the piss with things like service charge. And in an area of the city which has full gentrification encroaching, so a desirable area in many ways.
The lender valuation and level 2 survey has been done, and the surveyor has said the lender is going to reject our application. The main reason being the level of renting tenants in the building
I've heard this be an issue. But it feels bizarre to me that we are being penalised for being some of the first people in the building to buy. Of course it's a high ratio of renters, that's the point of the scheme
I cant tell if this is a serious red flag we should listen to and give up trying to buy. But honestly this is the best option we're going to get for many reasons. I really do want to continue living here.
Should I get a mortgage broker familiar with this type of thing and apply somewhere else? Or is my only option going to be a specialist lender which means higher rates?
Fwiw it's Nationwide. And through the whole process with the bank and solictiors I have been clear on the nature of this scheme, no one seemed to think it would be an issue until now