Andythe mortgage specialist
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Hard-to-place property

The house is fine. It just doesn’t fit the lender’s box.

Lenders care about one thing above all: could they sell the property easily if they had to? Anything unusual about how it’s built, where it is or how it’s owned can make them nervous. Some are far less nervous than others.

The short version
  • “Hard to place” usually means a lender worries about resale value or valuation.
  • Every lender has its own list of property types it will and won’t accept.
  • Knowing the issue before you offer, or before the valuation, saves time and fees.
  • A survey and a good conveyancer matter even more with an unusual property.

Non-standard construction

Most lenders are happy with brick and block under a tiled or slate roof. Beyond that, criteria vary widely: timber frame, steel frame, concrete (including pre-cast reinforced concrete, or “PRC”, homes), thatched roofs, cob, and modern methods of construction. Some types need a repair certificate or a specialist report.

Flats above shops and commercial premises

Lenders can worry about noise, smells, fire risk and resale, particularly above takeaways, pubs or launderettes. Some will lend, some won’t, and some depend on exactly what the business below is.

Ex-local authority homes

Former council houses are often treated like any other home. Flats can be harder, especially in high-rise blocks or blocks with deck access, and where a large share of the block is still council-owned.

Short leases and leasehold issues

Many lenders want a set number of years left on the lease at the end of the mortgage term, and a lease that’s getting short can affect both lending and value. High or rising ground rent and service charges can also matter. Extending the lease is sometimes part of the plan.

Other things that can make a lender pause

  • cladding or fire-safety questions on flats (sometimes needing an EWS1 form)
  • Japanese knotweed nearby or on the property
  • agricultural ties, annexes, or a lot of land
  • studio flats or very small flats
  • properties needing major work, or without a working kitchen or bathroom
All lending is subject to status and lender criteria, and there is no guarantee of approval. Your home may be repossessed if you do not keep up repayments on your mortgage.
Typical cases

Properties Andy is asked about most

Non-standard construction
Timber, steel or concrete frame, PRC, thatch, cob and newer building methods.
Above a shop
Flats over shops, takeaways, pubs and offices.
Ex-local authority
Former council flats, especially high-rise or deck-access blocks.
Short lease
Leases running down, high ground rent or unusual lease terms.

Common questions about unusual property

The valuer said the property is “unsuitable for mortgage purposes”. Is that the end?
Not necessarily. That’s one lender’s view, based on its own criteria. Another lender may see it differently. It helps to know exactly what the valuer flagged.
Should I talk to you before making an offer?
Ideally, yes. If there’s something unusual about the property, knowing which lenders will consider it before you commit can save a wasted valuation fee and a lot of stress.
Does an unusual property mean a higher rate?
Sometimes, but not always. It depends on the issue and the lender. Andy will set out the real cost of each option side by side.
Found a home a lender doesn’t like?
Send Andy the details. He’ll tell you whether it’s likely to be mortgageable, and with whom.
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