In this guide we cover all the pitfalls that can result in your property becoming non-mortgage. Sellers make innocent mistakes without knowing that their home will not be able to be mortgaged.
So what makes a property non-mortgage?
- Properties that have been neglected for years as they may not be suitable for human habitation. People can find themselves in this situation when buying a property to reform. Running out of funds or changing circumstances can affect your project.
- Those that do not have kitchens and bathrooms or those that are very outdated are considered unusable.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 by purchasing it through a residential mortgage.
- With a value of less than £ 50,000, you will need a reliable cash buyer.
- Apartments or Houses with lease contracts of less than 70 years. The owner has the right to take possession of the property after the lease expires.
- Properties with structural problems, evident by cracks in ceilings and walls. These properties will require shoring and repair work to be carried out. Such properties remain non-mortgage and uninsured for five years or more after all work.
- Subsidence occurs because the soil surrounding the foundation contracts or swells. This causes the base, which supports the walls, to move. Evidence of subsidence can be uneven floors, cracks within external walls, and cracks over window openings. Even when fixed subsidence and structural problems are a stigma on a property. You will be asked to disclose any of these issues to a buyer.
- Properties near mining works, landfill areas or a history of flooding are not mortgages.
- Properties with tenants present or regulated lease cannot be mortgaged. If the tenants moved in before January 15, 1989, you have tenants present.
- Properties with a defective lease are not mortgages. An example of a faulty lease is a block of flats and the maintenance of a shared roof is unclear.
- Properties with wet, dry, or wet rot, wall ties, or damaged floor joists cannot be mortgaged.
- Properties with boundary disputes
- Buildings in poor condition or dangerous
- Illegal extensions without permission of the planning and control departments of city councils
- Properties with non-standard construction, such as precast concrete
- Properties that are located next to commercial premises or apartments above take-out stores or shops
- Properties in the vicinity of Japanese Knot-weed.
- Freehold properties
- Fire damaged properties
- Abandoned farm buildings
This is not an exhaustive list. If any of the above applies to you or if you know that your property is not mortgaged, there are many real estate companies that can buy your property at the best cost.