When it comes to buying property, it’s worth knowing what to look out for – and what to avoid. To enhance your knowledge, read our quick guide below to learn what properties lenders don’t like and what problems to watch out for.
The kind of properties that lenders do not always like include:
- Homes of unusual construction – any building that isn’t made of standard brick and mortar construction. There are still homes built of wattle and daub, cob, concrete or timber frames, which are sometimes still covered with asbestos cement.
- High-rise flats – for example, council or ex-council flats in tower blocks, especially if they have problems with lift maintenance or where most of the units are still in the hands of the local authority.
- Flats above shops, restaurants and offices – any property where other people could have the right to access your property. These types of properties are also hard to value.
- Short leaseholds – flats are often sold on leasehold, which means you only own it for a specific number of years. Leaseholds of 80 years or less can be a problem so look to extend the lease before you buy.
- New build – lenders often value newly built properties lower than the asking price meaning you may need a larger deposit.
- Brownfield sites – properties built on former industrial land can be difficult as they may be contaminated. Your solicitor will need to check the certificates to prove the property has been decontaminated.
- Too close to the sea – coastal erosion could lead to your new home becoming dangerously close to a cliff edge.
- Character homes – converted lighthouses, windmills, schools and pubs may require a mortgage from a specialist lender.
- Grade 1 listed properties and thatched houses – the cost of repairs and rebuilding makes them less attractive to mainstream lenders who also worry about the higher risk of fire.
Potential problems to look out for when viewing a property:
When you are house hunting, bare in mind the property might not be as good as it first seems. Avoid costly problems by looking beyond the decor. There may be repair bills, hidden problems like damp, faulty electrics, or even noisy neighbours, which could contribute towards higher costs and extra effort after you move in.
Inside the property –
Check for problems that may be expensive to fix such as:
- Missing roof tiles
- Weak toilet flushing
- Faulty guttering
- Dampness and mould
- Rotten window frames
- Leaking in pipe infrastructure
If you have a friend, family member or trusted builder who is familiar with fixing properties, take them with you to visit the property.
A builder will give you an idea of how much it will cost to fix any obvious problems. You can then use this as a bargaining tool to ask the seller to lower the price.
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.
Outside the property –
- Subsidence – Look outside the property. Are there big trees growing nearby, which could potentially cause subsidence problems?
- Noisy neighbours – Ask the sellers if there have been any problems with neighbours. If you’re viewing a flat, find out if the neighbours above have wooden floors.
- Flooding – Is the property in a flood zone? Buildings insurance for homes that have been flooded in the past is expensive and may be hard to find. If you can’t get insurance, then you won’t get a mortgage.
- Visit at different times of the day – Your street may be quiet in the middle of the day but noisy and busy during rush hour.
- Parking permits – Will you need a permit to park there? Is it difficult to find parking if you don’t have off-street parking or a garage?
- Check the surrounding area – Look at the state of the nearby streets, pubs and shops to get a feel for the area. Check if the property is in a Neighbourhood Watch zone.
We hope this helps! The fundamental thing to remember is property can be highly profitable if it’s done right and if you can avoid or at least be aware of the points above then you are giving yourself the best chance of turning your property investment into a success story.
The good news is all the properties on our website are pre-checked and vetted to ensure they are at a high standard to make a solid investment from day one. We still encourage you to perform your own due diligence and we are happy to assist you in any way we can.
Click the link below to view a snapshot of our current opportunities or alternatively arrange a free consultation with one of our team.
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