When you are selling a house, most likely you will target traditional buyers. That is, those people who require a mortgage in order to complete the purchase. With traditional buyers come traditional lenders! Their concern is minimising their risk and maximising their profit. As such, they will not approve loans on homes that do not meet their standards.
If you have a property that is not in good repair, this leaves you a bit of a dilemma should you like to or need to sell. But it is not an impossible feat. We buy any home experts can help.
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Why Won’t Lenders Approve Financing?
We are all familiar with the various reasons why mortgage lenders will not approve certain buyers. Maybe they have a subpar credit history or are unable to prove their creditworthiness. Maybe they do not have sufficient and stable income. Perhaps they are not on the electoral roll or have been through repossession in the past.
But we may not be as well versed in the reasons why mortgage lenders would deny financing based on the house. This can – and does happen. As mentioned, if a home does not meet its standards, they can withdraw financing. When does this happen?
The house is not habitable. If people cannot reasonably live on the property – that is, if it is fully derelict or party derelict, not weatherproof or not secure, lenders will not approve a mortgage.
The property lacks a kitchen, bathroom and/or heat. These are basics without which people cannot live safely or comfortably – and without which lenders will not grant financing.
There are structural problems. Whether it is lack of a damp proof course, failure of the cavity wall tie, flood/water damage or subsidence (i.e. caving in or sinking), this can derail any plans a buyer has for a traditional mortgage. Severe dry rot, wet rot or damp are also big “no’s” for lenders.
The house was built with non-standard construction materials/techniques. Homes that are constructed from timber, thatch, cob, corrugated iron, concrete and other non-standard materials do not meet lender requirements. As well, “system built properties,” such as Dorran, Airey, Hamish Cross, Parkinson Frame, SGS, Stonecrete and others are now unable to be mortgaged for safety reasons.
The house is considered “low value.” If a home is valued at less than £50,000 or so, most traditional lenders will not approve a mortgage. It is considered too high of a risk for too low of a profit.
There are invasive weeds. Believe it or not, the presence of invasive weeds like Japanese knotweed can lead to refusal. This is because some of these intruders can cause structural damage.
Can We Buy Any Home Experts Help?
There is a reason they are referred to as “we buy any house” companies. Virtually every property has value, albeit maybe at a lower price point that you would like. It depends on the buyer. When they do not require traditional financing, they are not required to limit themselves to traditional lending standards.
We buy any home experts are investors who specialise in fast, cash property sales. They may thoroughly renovate the property and resell, renovate and turn it into an investment opportunity (e.g. such as rentals) or develop the land for residential or commercial use. In any case, they have the capital necessary to make a purchase and take the next steps towards either rehabilitating it or otherwise utilising their investment.
A buy any house company negates the need for extensive – and expensive – repairs on properties that are deemed unsuitable for traditional mortgages. This can save you thousands or tens of thousands of pounds… money that you may not want to put into a house that has become a financial burden.
When you work with a reputable, experienced company, you are virtually assured a sale and you can sell as-is. The time frame is exceptionally streamlined; in as little as two weeks (or in some cases even less), you could be free of the “money pit” and walk away with cash directly deposited into your bank account.
When you are told your house is not saleable – or at least not mortgageable – that does not mean you are out of options. We buy any home experts can help.