Selling an Unmortgageable Property
As lending guidelines change, home sellers can find themselves looking to sell an unmortgageable property.
Your questions answered when selling an unmortgageable house
✅ What is considered to be an unmortgageable property?
✅ Why does the lack of a mortgage make it harder to sell a home?
Because buyers typically need to get a large mortgage loan from a financial provider in order to cover the costs of purchasing properties. If they are interested in making an offer on your home but cannot secure the mortgage to pay for it, the sale cannot go through. If this happens then you will have to consider alternative methods of selling, like using a quick home buyer.
✅ Can I simply lower the price of my unmortgageable home to sell it?
This is certainly an option because it would reduce the amount of loan required to buy it, although you will likely have to significantly reduce the sale price by many thousands of pounds before a lender would reconsider their decision to deem it unmortgageable. And a major cut to the sale price of your home will mean a massive drop in how much profit you could make from selling.
✅ Does having an unmortgageable property mean it will never sell?
No. Some issues that make a home unmortgageable can be fixed relatively easily, for example if a house lacks a bathroom, then the owner could spend money to install one and then try again to sell the property. Other problems, such as an uninhabitable home, aren’t easy to fix, and the best way to sell those might be to use a fast property buyer such as LDN Properties.
✅ Should I pay to fix a problem with an unmortgageable property before selling it?
This depends on your particular circumstances, time and money. If you can afford to invest in correcting an issue that a lender has said makes your home unmortgageable, you might want to do that because it could potentially increase the property’s value and make it quality for a mortgage. However, this is not something that every homeowner will be able to consider doing.
✅ Will every method of selling an unmortgageable home cost me fees?
No. If you contact LDN Properties to sell your unmortgageable home we’ll be able to make a speedy and competitive offer and complete the purchase of your property within weeks, and without charging you any fees. By contrast, you will have to pay commission if you successfully manage to sell your unmortgageable home through an auctioneer or estate agent.
✅ How long will it take me to find a buyer for my unmortgageable home?
It depends on how you plan to sell your home. If you use an estate agent you might be waiting for many months or even longer to find a buyer for your unmortgageable property. An auction might be quick and take a few months. And selling to LDN Properties is even faster because we aim to finalise the purchase of each home that we buy all within a few short weeks.
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