6 Home To Avoid If You Want to Get a Mortgage

Revealed: 16 Home To Avoid If You Want to Get A Mortgage
Mortgage insurance can be a cumbersome task in itself, but did you know that the type of property you are buying might ruin your chances of getting a loan? From housing the former local authority council to eco-homes, we are unveiling 16 properties that may be struggling to obtain a residential housing loan.
1) former housing of local authority

Previous housing for local authorities can be financially attractive to buyers, as these properties are often cheaper than other open market homes. Unfortunately, most lenders are reluctant to grant mortgages on the former local housing because these houses are more likely to lose their value over time. Lenders can also be deferred by these properties if they are surrounded by high concentrations of rented council houses (rather than properties occupied by the landlord).

2) high-rise apartments
Lenders may refuse to grant mortgages directly to homes above a certain level in high-rise apartments. The standards vary, but can range from the fourth floor to the 20th floor. This is due to the fact that lenders have historically had concerns that high-rise property would be able to maintain its value under the economic downturn. Mortgage providers are also concerned about the fact that the quality of public areas in high-rise properties is beyond the control of the homeowner, meaning they will have little say on how they will affect the value of the property in the future.

3) Properties made of concrete
Most of the high concrete houses seen today are built in the 1960s and 1970s, and service providers will usually not lend to houses made of non-standard materials such as concrete. Although some are respected – such as the Barbican complex in London which contains thousands of high-value apartments as well as art galleries, schools and theaters – most lenders will not be subject to them. You may also find it difficult to get a mortgage on hay or house properties with wood and steel frames.
4) Apartments above a shop or business premise
After the financial crisis, some lenders stopped offering mortgages on properties that were near any “high risk” commercial buildings such as shops, restaurants and bars. This is because houses above commercial buildings are more vulnerable to things such as noise, smells, garbage, and security issues – which are beyond the control of owners and can adversely affect the value of the property.

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5) Properties with attachments or two kitchens
Properties with annexes or kitchens often bring red flags to lenders where they may see a sign that you may be renting part of the property, which may be a breach of the mortgage. If you can get a mortgage in this type of property, it is important to consider the tax implications of the board, which may make owning it more expensive. The guidelines issued by the agencies of the evaluation offices require payment of a separate tax on each building or part of a building that has been constructed or adapted for use as a separate residence.
6) Multi-unit blocks
A multi-unit unit (or multi-unit unit) is a single-ownership building, occupied by many tenants who live independently of one another. This can be a small block of flats or a Victorian house that has been converted into apartments. It differs from a flat share or house because each apartment in a multi-unit block is independent and there are no common areas between the tenants. Lenders are unlikely to grant a residential mortgage in this type of property because there is a risk that you may rent part of the building, which may violate the mortgage terms.

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7) Living units / work
As the name suggests, living / working units are properties designed to allow you to live and are essentially running a business. Lenders are often reluctant to grant mortgages on this type of property because they are not allowed to use these types of houses exclusively for residential purposes and will violate the planning regulations. If the local authority finds someone who violates these regulations, it may end up charging labor rates and municipal tax rates as well.

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