different property types
Different Property Types – When buying a property you’ll need to consider how your property choice can impact on your mortgage.
Not all mortgage providers lend on all property types.
The following isn’t 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’s not constructed of standard bricks and mortar can be considered unusual.
What constitutes high rise is open to debate and each mortgage provider will have their own set of rules. However, example 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
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.
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:
- Outdated Electrics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?