Dorran Construction Bungalow Mortgage
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Dorran construction bungalows were built between the 1940s and 1960s using a pre-fabricated reinforced concrete system. While these homes were initially intended to provide an affordable and quick housing solution, many of them have since been found to have structural issues, making it difficult to obtain a mortgage. In this article, we’ll explore whether it’s possible to get a mortgage for a Dorran PRC construction bungalow in the UK, what criteria need to be met, and under what circumstances it may not be possible.
What is a Dorran Construction Bungalow?
As introduced above, a Dorran Construction bungalow style properties are homes that were constructed using a pre-fabricated reinforced concrete (PRC) system between the 1940s and 1960s. Considered to be non-standard construction, most commonly found around Scotland, these types of properties were built using precast concrete panels, which were assembled on-site to form the structure of the building.
Like many forms of non-standard construction, they were intended to be an affordable and quick way to build houses, but unfortunately subsequently were found to readily develop significant structural issues.
If you are considering purchasing a PRC or Dorran construction bungalow, you should be aware that many lenders are cautious about providing mortgages on these properties due to their potential structural issues and seek out a specialist broker who is familiar with this type of property and how lenders may view it.
Can you get a mortgage for a Dorran Construction Bungalow?
Prefabricated Concrete houses such as those bungalows of Dorran Construction are widely known to potentially have structural issues, and of course as a result mortgage lenders may be very wary of being willing to lend money on them. However, thankfully, in some circumstances it is possible to get a mortgage for a Dorran Construction bungalow…but ONLY if appropriate repairs have been undertaken and satisifactory accompanying certification is available.
The mortgage lender will – by means of an initial survey (or Home report in Scotland) -assess the specific property’s condition, demand for and the level of risk involved in lending money for it.
Based on the valuers comments, some lenders may also require a more detailed survey to be carried out to identify any structural issues that need to be addressed. If any significant defects are identified, the lender may insist on the repairs being carried out before they will consider lending money on the property…..or may not be willing to lend at all.
What specific criteria will most likely need to be met to be able to obtain a mortgage on a Dorran construction (PRC) bungalow?
Obtaining a mortgage on a Dorran bungalow can undoubtedly be challenging due to the construction type, however, some lenders may be willing to offer mortgages on PRC properties if certain criteria are met.
Primarily, the property must have a PRC Certificate of Structural Adequacy (CSA) or equivalent – issued by a qualified structural engineer. In general, this certificate acts to confirm that the property has undergone the necessary structural repairs and been assessed to now meet the requirements of the PRC Homes Scheme. Lenders will want to see this certificate to ensure the property is structurally sound and safe. As the current homeowners do not always have this certification in place, in some instances, some – but not all – lenders will accept this certification to be provided and issued retrospectively.
In a nutshell, mortgage lenders do not accept PRC-built properties designated as defective if they remain unrepaired. For a Dorran constructed bungalow or property to be deemed acceptable for mortgage purposes, it must ordinarily have undergone extensive structural repair under an approved scheme and have the appropriate documentary evidence to demonstrate and support this.
If the property is semi-detached or part of a terrace, you should be aware that lenders typically require all adjoining properties to have undergone structural repair under an approved scheme as well.
Speak to an expert!
Contact me, Ross McMillan, the owner of Blue Fish Mortgage Solutions today for expert advice and guidance on your unique mortgage and property needs. I will work with you one-on-one to help you find the right solution for your specific needs. With my expertise and industry connections, you can rest assured that you are in good hands when it comes to securing the financing you need for your property.
Under what circumstances, will it not possible to obtain a mortgage for a Dorran construction bungalow or property?
It’s pretty back and white in this area… simply put, if the Dorran construction bungalow you are considering or own already, has not undergone the required structural repair works – typically involving replacement or supporting of the original structure using standard materials (ie brick or stone) – then it will not currently be possible to obtain a mortgage against this.
It will not be deemed structurally sound and therefore deemed as inadequate security by a lender.
Any such property will therefore only be able to be purchased without a mortgage and in other words will only be suitable for “cash buyers”.
In many instances, when this is the case, prospective purchasers may be inclined to purchase and demolish the unrepaired Dorran construction bungalow and utilise the plot to build a brand new home as this may be more cost effective than undertaking the repairs that would be necessary to make the home mortgageable.
If, however, the property has already had the necessary structural repair work, then a mortgage for a Dorran construction bungalow can absolutely become achievable, subject to your own personal circumstance.
Properties built using PRC or Dorran construction that are over two storeys in height are generally considered unacceptable to most lenders, regardless of whether or not they have been repaired.
Getting a mortgage for a Dorran PRC construction bungalow can certainly be challenging due to potential structural issues. However, it’s not impossible if certain criteria – such as having adequate certification of and having undergone the necessary structural repairs to make the property more structurally sound – have been met. It’s important to note that if the property has not undergone the required repairs then it will currently not be possible to obtain a mortgage.
If you’re considering purchasing a Dorran construction bungalow in the UK and want to explore your mortgage options, contact me, Ross McMillan of Blue Fish Mortgage Solutions today. As a specialist broker I have extensive experience working with these types of properties and can help you navigate the process of obtaining a mortgage. Make your enquiry today for a consultation and let me help and advise you on how to secure the financing you need to make your dream home a reality.
What are the key stages of the property buying process in Scotland:
- Speak to mortgage advisor to establish and get advice on what a realistic budget for your individual circumstance might be.
- Mortgage advisor may then progress to obtain an agreement/decision in principle to give you some confidence – not a guarantee – that you could obtain a mortgage. (aka an AIP/DIP)
- Start viewings and then identify property you would like to offer on.
- Instruct solicitor to make offer. (once you’ve done sums and consulted with your mortgage advisor to double check/firm up on figures etc)
- Once offer accepted, we then look to progress the agreement in principle (AIP) to a full mortgage application.
- Legal conveyancing between both solicitors commences.
- Once mortgage offer received, solicitor could be in a position to confirm the legal bargain (aka conclude missives) which would include a definitive date of entry/settlement date.
- For the date of entry, the monies required from you (i.e. deposit) need to be in your solicitors bank account and cleared.
- Solicitor draws down/receives funds from mortgage lender to complete the purchase.
- On the date of entry get keys for your new house.
Hopefully the above information has been useful but if you have any other questions or are ready to start your own property journey now, please fill in the enquiry form and we will get in touch!
This article is intended to be a generic overview and each individual situation will need to be considered carefully, with the final decision being down to the lender.
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