In this guide we cover all the pitfalls that can lead to your property becoming unestablished. Sellers make innocent mistakes, unaware that their home is no longer mortgageable.
So what makes a property non-eligible?
- Properties that have been neglected for years as they may not be fit for human habitation. People can find themselves in this situation when buying a property to renovate. Lack of funds or changing circumstances can affect your project.
- Kitchens and bathrooms that are not or very outdated are considered unusable.
- Believe it or not, a property with two kitchens. Why? Lenders assume that you could sublet part of the property after you buy it with a home mortgage.
- Under £50,000 you need a reliable cash buyer.
- Apartments or houses with leases of less than 70 years. The landowner has the right to take possession of the land after the lease expires.
- Properties with structural problems, recognizable by cracks in ceilings and walls. These lots require underpinning and rehabilitation work. Such properties remain unpledged and uninsured for five years or more after all work is completed.
- Subsidence occurs when the ground around foundations shrinks or swells. This moves the foundation that supports the walls. Evidence of settlement can include uneven floors, cracks in exterior walls, and cracks over window openings. Even if fixed settlements and structural problems are a thorn in the side of a property. You must report all of these issues to a buyer.
- Plots that are close to mining facilities, landfill areas or flood plains are not eligible for mortgage lending.
- Properties with permanent tenants or regulated tenancies cannot be lent against. If tenants moved in before January 15, 1989, you have permanent tenants.
- Real estate with an incorrect rental agreement cannot be lent against. An example of a defective lease is an apartment building and the maintenance of a shared roof is unclear.
- Properties with damp, dry or wet rot, wall anchors or damaged floor beams cannot be lent against.
- Plots of land with boundary disputes
- Building in serious decay or dangerous
- Unlawful extensions without permission from local planning and building control authorities
- Objects with non-standard construction, such as B. precast concrete
- Properties located next to commercial premises or apartments above takeaways or shops
- Plots of land in close proximity to Japanese knotweed.
- Real estate with flying property
- Fire damaged properties
- Derelict farm buildings
This is not a complete list. If any of the above apply to you or you know that your property is not mortgageable, there are many real estate companies that can buy your property at the best price.