Recent ‘Guidance for Valuers’ from HSBC states that they will no longer lend on a number of non-traditional construction types such as wimpey no-fines and in addition pre-1960s timber frame construction. Of particular concern to property owners in Cornwall and parts of South Devon is that they will also no longer accept mundic properties grade A2 or A3 (formally AB) for mortgage lending purposes. We also understand this is the case with Natwest but we are not aware of other lenders that have similar guidance but there are likely to be some. This essentially means that potential purchasers could pay valuation fees only to have the properties declined by the valuer and/or lender. In addition, the best deals on the market at any given time may not be available on such properties. If this trend continues, then there is most likely going to be a significant impact on the Open Market Value of such properties. We will be altering our standard paragraph in the summary of our mundic reports going forward to something like “the property has been graded A2 (or A3) and as such is regarded as suitable to most but not all lenders; this may have an impact on the Open Market Value of the property”.