Different property types

Here’s a little help with the different property types you can experience when buying a home.

When buying a property you will need to consider how your choice of property might impact on your mortgage.

Not all mortgage providers will lend on every type of property. It might be that certain property types are not suitable, but that will depend on the mortgage companies criteria.

The following is not a definitive list, but will hopefully give you an idea of things to consider:

Unusual Construction Type
In a nut-shell almost any building that is not constructed of standard bricks and mortar can be considered unusual.

High-rise flats

What constitutes a high rise flat is open to debate. Each mortgage provider will have their own set of rules. However, examples to consider include:

• Ex-local authority tower blocks
• Flats above commercial property

This type of property criteria can be confusing. It’s mainly a question of future saleability.

Things to consider include:

• Access rights
• Type of business below or nearby.
• Flats above fast food outlets, businesses with fire risks, late night or 24 hour services

Short leaseholds

Generally, flats are sold on a leasehold basis. This means that you only own it for a specific number of years. The remaining length of a lease will impact on your ability to get a mortgage. Short leaseholds, below 70 years remaining for example can be a problem.

New build properties

Surprisingly lenders often value newly built properties lower than the asking price. There are many reasons for this and it’s not uncommon for mortgage companies to ask for higher deposits.

Brownfield sites

Properties built on former industrial land can be difficult as they might be contaminated. Your solicitor will need to check the certificates to prove the property has been decontaminated.

Homes with Character…

Yes, believe it or not it’s not so easy to get mortgages for some “character” properties. That said we’re really talking about the more unusual property. For example:

Converted Schools, Pubs, Flying Freeholds…. Thatched Roofs, Listed Property, Farms etc

Other things to consider

There might be repair bills and hidden problems including:

• Damp
• Outdated Electrics
• Socially demanding neighbours
• Faulty guttering
• Missing roof tiles
• Rotten window frames

Don’t be afraid to ask how old the wiring and roof are or when the boiler was fitted and when any renovations were done. Look around the area. Check out the neighbourhood, nearby streets, pubs and shops. Make a visit at different times. Your road might be quiet during the day but noisy and busy during rush hour.

Look outside the property:

• Are there big trees growing nearby?
• Is it difficult to park?
• will you need a permit to park there?

We have more guides available for first time buyers, home buyers, remortgages and buy to let.

We also recommend The Money Advice Service if you want more detailed information.