In simple terms there are two stages to a mortgage application. The first is the financial suitability of the applicant/s, the second is the suitability of property as security for the loan. A mortgage is after all a loan secured against a property.
You may be forgiven for assuming that most lenders will lend on most properties. This is probably true of houses but is most certainly not the case with flats, where for any one property there could be one or a number of reasons why lenders don’t want to lend making it much more difficult to determine who will lend on the most favourable terms.
Short leases – Lenders all have specific requirements about minimum lease lengths at the start and end of the mortgage. If the property you are interested in has a short lease a lot of lenders may decide not to lend.
Studio flats – A lot of lenders won’t lend at all on studio flats. Of those that do, most have minimum square footage requirements in order to lend.
Flats above commercial – Can be difficult to finance in certain situations. There will be restrictions on who will lend especially if the commercial property is a restaurant, take away, pub/bar or even a dry cleaners to name just a few. It is quite common to find commercial property in new build developments.
New Build Properties – All lenders have minimum deposit requirements for new build flats. These differ from their general minimum deposit criteria and are normally much higher than minimum deposits required for other property types such as houses or period flats.
Ex-local authority flats – Can be difficult to mortgage depending upon a number of factors such as the number of floors in the block, which floor the flat in question is on, the construction of the building, what percentage is now owner occupied.
At Domus finance we have been arranging mortgages on all these property types for over a decade. We can finance live work units, self-build projects, renovation projects and even currently uninhabitable properties whether for residential or investment purposes.
In fact we could help whatever the situation. We have the knowledge and the contacts to structure your mortgage over the most favourable terms no matter what type of property you are considering. To find out more or to speak to us please call 020 3393 4333 or email email@example.com.