Within this guide we cover all the pitfalls that can result in your property becoming unmortgageable. Sellers make innocent mistakes without the knowledge that their house will become unmortableable.
So, What makes a property unnaturalable?
- 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 refurbish. Running out of funds or change in circumstances can affect your project.
- That do not have kitchens and bathrooms or ones that are very dated are deemed unusable.
- Believe it or not, a property with two kitchens. Why? Lenders assume that you could sub-let part of the property having bought it using a residential mortgage.
- That are valued below £ 50,000, you will require a reliable cash buyer.
- Apartments or Houses with leases less than 70 years. The freeholder has the right to take possession of the property after the lease expires.
- Properties with structural issues, evident from cracks in ceilings and walls. These properties will require underpinning and remedial work carried out. Such properties remain unmortableable and uninsured for five years or more following all work.
- Subsistence occurs due to the soil surrounding the foundations shrinking or swelling. This causes the foundation, which supports the walls to move. Evidence of substance can be uneven floors, cracks inside external walls and cracking above window openings. Even when fixed compliance and structural issues are a stigma on a property. You will be required to distribute any of these issues to a buyer.
- Properties that are close to mining works, areas of landfill or history of flooding are unmortableable.
- Properties with sitting tenants or regulated tenancies are unmountable. If tenants moved in before 15th January 1989, you have sitting tenants.
- Properties with a defective lease are unmortableable. An example of a defective lease is a block of flats and maintenance of a shared roof are unclear.
- Properties with damp, dry or wet rot, wall ties or damaged floor joists are unmortableable.
- Properties with boundary doubts
- Buildings in severe disrepair or dangerous
- Illegal extensions without permission from the local councils planning and building control departments
- Properties with non-standard construction, such as per-fabricated concrete
- Properties that are next to commercial concessions or apartments above food takeaways or shops
- Properties within a close proximity to Japanese Knot-weed.
- Properties with flying freehold
- Fire damaged properties
- Derelik agriculture buildings
This is not an exhaustive list. If any of the above points apply to you or you know your property is unforgable, there are many real estate companies that can buy your property at best costs.
Source by Saddat Abid