Selling an Unmortgageable Property

Find out why the purchase could not proceed

“Unmortgageable” can conceal several different problems. Ask for the actual reason and any supporting report. One lender declining one application is not enough to establish that every lender or buyer will reject the property. A mortgage adviser, surveyor or solicitor can help identify which issue needs attention.

Match the information to the obstacle

Preparing the right information is more useful than gathering unrelated documents.

• Condition or construction: existing survey findings, reports and repair estimates.
• Leasehold: the lease, remaining term and information on charges and proposed works.
• Title or access: ask your solicitor which title documents and correspondence matter.
• Tenancy or occupancy: establish the arrangement and records a purchaser needs.
• Buyer finance: distinguish the buyer’s circumstances from a problem with the property.

Compare resolving the problem with selling as-is

Ask what can realistically be resolved, how long it might take and what it could cost. Then compare that with actual as-is proposals. Do not assume a repair or legal step will make a particular lender accept the property: obtain advice before spending money on that assumption.

Check the funding behind a cash offer

Ask who the contracting buyer will be and have your professional advisers verify the proposed funding. An investor might use cash already available, finance or a combination. Establish whether approval, valuation or another transaction remains outstanding. “Cash buyer” is not a guarantee that the purchase will complete.

• Which funding conditions remain?
• Does the buyer need a valuation or survey?
• Who can revise the price and on what grounds?
• Are there reservation payments, exclusivity terms or other commitments for you?

Compare investor, agent and auction proposals

Use the same property information for each assessment. Compare price, costs, conditions, realistic dates and what happens if the transaction falls through. For an auction, ask about the specific auction method and legal commitment rather than assuming all auctions work the same way.

Start with a short property enquiry

Give the postcode and, if known, why the previous buyer or lender could not proceed. We can discuss whether an investor introduction is suitable. Sellers pay no fee to Lucennio Property Limited, and there is no obligation to accept a proposal. We do not provide mortgage advice or guarantee funding.