10/09/2025
That’s great advice Ashleigh
Ashleigh Tunstall - Part of Mark Buchanan Property Group - Powered by EXP
🛑 6 Common Reasons Why A Property Can’t Be Mortgaged 🛑
1️⃣ The property is uninhabitable
This applies to derelict properties, that pose safety risks or are considered not weatherproof. In addition, properties without a kitchen or bathroom may also be classed as unmortgageable.
2️⃣ Structural problems
If a property resembles the Leaning Tower of Pisa, chances are it’s got a bad case of subsidence – another big no-no for lenders. Other issues include severe damp, dry or wet rot.
3️⃣ Proximity to commercial or industrial sites
Lots of people live above shops so obviously these properties aren’t unmortgageable, but they aren’t always given regular residential mortgages. Particularly if they are above shops such as dry cleaners, pubs or restaurants (where there’s a high risk of fire/smoke damage and disturbance). Similarly, if you buy near a factory or industrial site, a lender may be more reluctant to provide a mortgage as it may be difficult to sell on.
4️⃣ Doesn’t comply with building regulations
Sometimes extensions or building work is carried out without the necessary approval, or doesn’t meet strict building regulations. This can hamper a sale as a lender will need to see the necessary permissions/certificates to provide a mortgage.
5️⃣ Non standard construction
Properties built with pre cast concrete panels, timber frames or thatched roofs etc which can lead to higher maintenance costs make it very difficult to obtain mortgages due to potential risks and lower resale value compared to standard homes.
6️⃣ Spray Foam Insulation
Spray foam insulation can lead to rot and decay. It traps moisture, causing mould which eventually leads to rot. This is very costly to remove (thousands). Unless removed, it’s cash buyers only!
