Thinking of buying an unusual or ‘problem’ property?

Although the term ‘unusual’ suggests a property that is unlike any other ether are a surprising amount of properties that lenders may consider to be less than typical, and are hard to mortgage.

Unusual properties could include those buildings that don’t have standard construction or materials. Examples of such unusual properties include timber-framed buildings, concrete properties or even homes built predominantly of glass. Prefabricated homes quite commonly built in the 1950s and ‘60s, may also fall into the category of an ‘unusual’ building, leading to many people asking “Can I get a mortgage on a prefab house?”.

Sometimes a specific feature may lead to a lender considering a property to be unusual. This is particularly true of properties with thatched roofs.

Listed buildings also fall into this group of properties. Whether they are Grade 1 listed buildings or Grade 2 listed buildings, a lender may be cautious about providing a mortgage.

As well as unusual properties, prospective borrowers may find some lenders are cautious about offering a mortgage on buildings with specific issues.

One of the problems that could put off a lender is if the property in question has a history of subsidence. It can be attractive to buy a property with a history of subsidence as it may mean that you can buy it at a lower price, but you should be aware of the problems you may face when applying for a mortgage.

The presence of Japanese knotweed, either on the property you are seeking to buy (or remortgage) or even in the surrounding area can also make lenders nervous. Find out more about our specialist mortgage service for properties with Japanese knotweed.

The reasons why lenders may be reluctant to lend to a borrower with their heart set on an unusual or problem property vary according to the issue.

One of the considerations lenders have when approving a mortgage is the resale value of the property in question. To put it bluntly, if your home is repossessed by the lender, they want to know that they will be able to recoup their investment by selling it.

Listed properties often have restrictions on what can be done to them. This can make it difficult to ‘improve’ a property and subsequently increase its value. Listed properties are also frequently quirky with non-traditional features. This means they may only appeal to a small number of buyers.

Buildings with unusual construction also raise questions about their attractiveness to other buyers. In addition, homes with non-traditional construction may need more maintenance than other buildings. Lenders may be concerned that you won’t keep this maintenance up and the house will fall into disrepair, again affecting resale value.

Lenders may also worry about your ability to repay your mortgage if you have additional financial commitments such as the cost of re-ridging a thatched roof making it difficult to mortgage a thatched property.

All of this may be starting to sound hopeless. However, if you speak to experienced specialist brokers, like the ones at Simply Lending Solutions finding a mortgage need not be impossible.