Making dream home a reality
They are also cautious about flats in ex-local authority blocks or above shops, often the only way young people can get on the property ladder. Pete Ball, personal finance CEO at specialist lender Together Money, said there may be nothing wrong with many of these properties: “Their only fault is failing to tick standard boxes in lenders’ risk assessment systems.” WRONG DESIGNS A thatched cottage is a thing of beauty but the roof may be the final straw for many lenders, said Ball.
“They are perceived as more susceptible to fire and expensive to maintain, needing replacing every 10 years or so,” he added. The success of TV shows such as Grand Designs has left many dreaming of converting disused water towers, windmills and warehouses. But lenders can take a dim view of this trend. They are also wary of construction techniques such as timber frames, concrete or glass, again, fearing resale issues, Ball said.
GETTY Interesting 'non-standard' homes are difficult to keep hold of, here's how you can do that
SKY’S THE LIMIT Many also have a low opinion of high-rise flats, particularly ex-local authority blocks. They may be concerned about maintenance of lifts, hallways and communal areas, and insist that 80 per cent of the block is privately owned. Some will not lend above four or six floors and only when there is a working lift. Former “Right to Buy” council flats and houses can pose a problem, particularly if more than half the estate is still under local authority ownership, Ball added, as lenders prefer more “aspirational” neighbourhoods.
The house that 100k built Thu, March 30, 2017 A property built by a couple as their dream home is now worth more than double what they spent on the cost of construction. Play slideshow Endemolshine Group 1 of 9 The House That £100K Built
FLATS ABOVE BUSINESSES Traditional mortgage lenders often shun flats above restaurants, fast food outlets, cafés and dry cleaners, due to heightened fire risk. Many impose a blanket ban as there is no guarantee what type of business will set up shop in future. Other problem properties may include prefabricated buildings, homes threatened by Japanese knotweed or with leases lasting less than 70 or 80 years. Ball said there is plenty you can do to boost your chances of success: “The larger your deposit, the better as you are sharing in the risk.” Ask the existing owners about building maintenance and home insurance, as these may be higher than on a standard property. “Also check whether they have a mortgage and consider approaching the same lender,” he said.
GETTY Above shop properties are often overlooked due to risk, but a larger deposit can solve this