All you need to know about property and valuations

Maximum plot size normally accepted is 4 hectares/10 acres.

Properties with an annex may be considered subject to valuer’s comments, where it is intended that a family member will reside in the annex or where this will be used as family staff accommodation e.g. live-in childcare arrangements. In addition to standard valuation requirements, the valuer will consider the following when assessing the property:

• Potential for letting: We can't lend on a property where the annex could be sublet on a permanent or temporary basis. 

• Access and service: An annex should normally share its access and services with the main residence. If these are separate the risk of the annex being sublet is increased and may result in the property being declined. 

• Size and nature: The annex should be secondary to the main residence. For example a 6 bedroom house with a 1 bedroom annex could be considered however a 3 bedroom house with a 2 bedroom cottage is likely to be unacceptable.  

• Buy to let: Where the property will be a buy to let, this can only be considered where there is likely to be sufficient demand from potential tenants who wish to occupy the whole property as a single- family residence.

We treat coach houses the same as ‘Freehold Flats/Flying Freehold Properties’, please see this section for full details.

Can be considered subject to valuer’s comments. 

Please see Ex-local authority flats (below) where relevant. 

Can be considered subject to valuer’s comments. The valuer will consider the demand for owner occupation.

Can be considered subject to valuer’s comments. The valuer will consider aspects that may impact marketability such as: noise, smells, anti-social opening hours and fire risk in conjunction with locality and demand.

Property must have a minimum floor area of 30m2. This will be determined by the valuer. The floor area excludes any balconies or covered external areas.

Acceptable but only where it is possible to enforce positive covenants against other occupants of the building i.e. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents.

• Maximum Loan to Value is restricted to 90% (75% for Buy to Lets)

• For this type of property a standard valuation will be instructed

• On a remortgage our free legal products may not be suitable for this type of property and where our appointed solicitors are able to act, additional costs could arise due to the extra work required. Natwest provides cashback option on our remortgage products to assist where customers wish or are required to use their own solicitors. All remortgages with this property type will continue to benefit from a free valuation. 

Property types we’ll consider are:

• Freehold flat (Max 90% LTV). This includes coach houses
• Flying freehold flat (Max 90% LTV)
• Share of freehold flat
• Leasehold flat where the customer owns the freehold (We will require security over the leasehold flat and the freehold interest.) 
• Leasehold flat - customer owns freehold reversion (Tyneside) - Two leasehold flats in one building. Leasehold A owns the Freehold of Leasehold B and Leasehold B owns the Freehold of Leasehold A.

The valuation must confirm the property is readily saleable and a Solicitor confirms the Title is good and marketable.

• The valuer will assess each case on an individual basis.  

For more information, please see our Japanese knotweed guide.

If the customer intends to run a business from the property, we’ll only provide a mortgage if the property is being used for residential use and can be readily restored in its entirety to owner occupation. The work area of the property must be no greater than 20% of the total property area, running a business from an office or room in their home.

Typical examples of these customers might be architects, accountants, chiropractors, physiotherapists, etc.

Unacceptable commercial activity includes but is not limited to:

• Bed and breakfast, guest houses, holiday let accommodation

• Country estates, equestrian centres, campsites, kennels, farms or agricultural use or livestock kept for commercial purposes, forestry, fishing/hunting rights and crofts (regardless of whether this is to meet agricultural restrictions)

• Post Offices

Purpose Built Live/work properties

Purpose built or converted properties with a registered Live/Work title are not acceptable, as the title restrictions on this type of property can affect future sale.

Unacceptable

Can be considered subject to valuer’s comments on their own merits.

See Northern Ireland Hub.

Unacceptable, unless the property is part of a purpose built apartment block located within the post code range BT1 to BT18. If they are within these postcodes a management company should be in existence.

See Northern Ireland Hub.

The bank considers a property to be a Self-Build where; 

• It meets our New Build definition, decided by the valuer at point of valuation and; 
• Where there is no purchase transaction involved 
   

In England, Wales and Scotland, we can’t consider any requests to repay self-build lending a customer has taken with another lender or lend on a ‘self-build’ property built/owned by a customer within the last 2 years. We also do not lend on incomplete self-builds.  

We can consider self-build properties in Northern Ireland where the current mortgage is with Ulster Bank. See our Northern Ireland Hub for more information. 

We don’t lend on Shared Ownership purchase cases.

However we can consider a remortgage where the customer is staircasing and will own 100% upon completion since the shared ownership element will be removed. 

We’ll consider a property with solar panels subject to confirmation that installation has been completed by a Microgeneration Certification Scheme accredited contractor.

The below link provides a list of acceptable installation contractors:

MCS- Find a contractor

Where the solar panels are leased the solicitor will review the UK lenders Handbook.

Solar panels need to be installed by an MCS contractor where they are bought outright or leased.

Northern Ireland only - We don’t accept lease arrangements other than a Lease of Rights (not a standard lease).

Can be considered subject to valuer’s comments on their own merits. Properties are considered on a case by case basis.

Where a property has been built, converted or significantly renovated within the last 10 years, we will require a warranty to be in place. Please see our New Build Hub for acceptable warranties and further guidance.

Unacceptable.

For flats in buildings over 11m within England, we will check Government Remediation Data to confirm whether the property is:

•Eligible for funding under Government Remediation Schemes

•Eligible for funding under Developer Remediation Schemes or assessed as not requiring remediation

Where this is confirmed, no EWS1 form or Leaseholder Deed of Certificate will be required and the property will be acceptable subject to the valuer’s comments.

Where an EWS1 form / FRAEW is requested:

•Flats in buildings with an EWS1 rating A1, A2 or B1 or FRAEW confirming remediation isn't required, are acceptable as standard

•Flats in building over 11m within England with an EWS1 rating A3 or B2 or FRAEW confirming remediation is required are acceptable subject to a qualifying leaseholder deed of certificate.

When leaseholder deed of certificates are required on a purchase, these would need to be obtained from the Vendor.

Where an EWS1 form / FRAEW is requested:

•Flats in buildings with an EWS1 rating A1, A2 or B1 or FRAEW confirming remediation isn't required, are acceptable as standard

•Flats in building over 11m within Wales with an EWS1 rating A3 or B2 or FRAEW confirming remediation is required are acceptable and will be confirmed by the valuation report.

Where an EWS1 form / FRAEW is requested:

•Flats in buildings with an EWS1 rating A1, A2 or B1 or FRAEW confirming remediation isn't required, are acceptable as standard.

•Flats in buildings with an EWS1 rating A3 or B2 or FRAEW confirming remediation is required, are not currently acceptable.

Where a EWS1 is requested, this will need to be provided alongside a Covering Letter. The purpose of the covering letter is to confirm the building address and that the EWS1 Signatory completed the assessment.

The covering letter and EWS1 form must:

1. Contain the same details. e.g. if there is more than 1 post code this must be stated on both

2. Have the correct subject property address details.

3. The date of sign off must be line with the EWS1 form or a later date, but not before the EWS1 was signed off.

Where an EWS1/FRAEW is not available, we may accept alternative forms of remediation evidence on a case by case basis. Alternative forms of remediation evidence include a letter of comfort from the developer or DLUHC (Department of Levelling Up Housing and Communities), in addition to a Leaseholder Deed of Certificate.

The FRAEW must:

•  Contain an executive Summary which clearly advises if remediation is required or if an EWS1 rating has been provided.

•  Be signed and have the signatories qualifications listed.

•  The building name and postcode on the FRAEW must match the application.

Please note: A fire risk assessment (FRA) is not a specialist report for external walls and will not be accepted.