The short version
- Common causes include non-standard construction, a short lease, structural problems, no working kitchen or bathroom, and some cladding issues.
- Some problems can be fixed before sale; others cannot, or cost more than they add.
- Your buyer pool is usually cash buyers, investors and specialist lenders.
- Tell buyers about known issues. The property information form asks direct questions.
Why lenders refuse some properties
A lender's valuer is assessing whether the property is good security for a loan. Reasons a lender may decline include:
- Non-standard construction, such as some precast reinforced concrete (PRC), steel-framed or system-built homes, especially without a repair certificate.
- A short lease. Lenders set minimum unexpired terms, and many will not lend where the lease is close to or below 80 years.
- Structural movement, subsidence or significant damp.
- No usable kitchen or bathroom, or the property is not currently habitable.
- External wall or cladding concerns on some flats.
- Japanese knotweed, depending on its location and whether there is a treatment plan.
- Unusual use, such as a flat above certain commercial premises.
Can the problem be fixed?
Some issues have a clear fix: installing a kitchen, extending a lease, or putting a professional knotweed management plan in place. Others, such as certain forms of non-standard construction, may be expensive to remedy, or the work may not change every lender's view. Get a quote and ask a mortgage broker whether the fix would make the property acceptable before spending money.
Who buys unmortgageable homes
Your realistic buyers are cash buyers, investors who will refurbish, and buyers using specialist lenders or bridging finance. Auctions are another route, but buyers there price in risk and an auction sale becomes binding on the fall of the hammer.
When comparing offers, look at the net figure after fees, the likelihood of completion and the timescale, not just the headline price.
Be open about what you know
The standard property information form (TA6) asks about matters such as structural issues and knotweed. Answer honestly. Withholding known problems can lead to a claim for misrepresentation after the sale.
How Verified Property Buyers can help
- We buy with our own funds, so a mortgage valuation is not part of our decision.
- We tell you early if anything about the property affects our offer, with reasons.
- No seller fees, and a completion date that suits you.
Want to see what waiting could cost? Try the selling-cost calculator, check recent sold prices, or request a cash offer.
Common questions
How do I know if my property is unmortgageable?
A mortgage broker or surveyor can usually tell you which features lenders will object to. A failed buyer valuation is also a strong signal.
Will I get a lower price?
Usually, because fewer buyers can proceed. The size of the difference depends on the cause and whether it can be fixed.