Posted by
kneworld
17 yrs ago
We had just seen an older village house we are interested in purchasing which is described as a ground floor and c*ckloft (500 sq ft + 245 sq ft) but is in actuality a ground floor and first floor with balcony there is also a second floor and roof top but the records state it is a first floor and roof top. Being that the banks claim it is illegal construction and will not do a mortgage on it but the owners have paid a Modification Premium with the district lands office that rememdies and tolerates this construction. Anyway the bank still won't give us a mortgage also the valuation are only half the asking pirce of $2M. Can anyone explain this to me in laymans terms>
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Mortgages in HK are biased against village houses (and anything older than 10 years, for that matter). Construction quality of village houses is ofen questionable because they don't have to conform to normal building codes (see our story on the issue: http://www.exploresaikung.com/communityissues/RelicofaBygoneEra.html which includes links to the government docs on building exemptions, etc).
Do shop around for a mortgage, though, some banks are better than others at valuing the SH properties. 6 yrs ago my husband and I must have tried 5 banks and we finally found one (taken over by Bank of East Asia) that did an evaluation that gave us an evaluation double what some of the others were.
Good luck!
Judy at Explore Sai Kung
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The solicitors now have have also advised us not to pursue the purchase of this duplex, even though the Letter of Toleration is recorded and in the deed and property search records
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psy23
17 yrs ago
Hi Kneworld,
sorry to interrupt you, could you tell me in which area you could find such older village houses. How did you find it. Thanks if you could lead me a bit, I am desperately looking for a old village house, but to no avail.
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We had seen that house in Sai Kung through Dragon Pearl Estate accross from McDonalds
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Check the assignment if there's a toleration letter attached to it about the c*ckloft.
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