Non-mortgageable properties

We offer innovative financing options for properties that traditional lenders deem non-mortgageable, empowering investors and homebuyers to unlock opportunities others overlook. When standard mortgage lenders refuse to finance a property due to construction type, condition, tenure, or other factors, Max Property Finance provides the specialist solutions that make these challenging properties accessible. Our non-mortgageable property finance helps you purchase, renovate, or refinance properties that fall outside conventional lending criteria, transforming rejected applications into successful acquisitions.

What are Non-Mortgageable Properties?

Non-mortgageable properties are buildings that traditional mortgage lenders refuse to finance due to factors that increase perceived risk or create valuation difficulties. These properties aren’t necessarily problematic – many are perfectly sound and habitable – but they fall outside the narrow criteria that mainstream lenders apply. Max Property Finance specializes in providing finance for these properties that conventional lenders won’t touch, opening doors to opportunities that many investors and buyers miss.

Non-mortgageable properties typically fall into several categories, all of which Max Property Finance has extensive experience financing:

Construction and Build Type Issues

Properties built using non-standard construction methods that traditional lenders view as risky or difficult to value. Max Property Finance arranges finance for concrete construction, steel-framed buildings, timber-framed properties, prefabricated houses, and other unusual build types that mainstream mortgages reject.

Condition-Related Issues

Properties in poor condition, requiring substantial repairs, or deemed uninhabitable by surveyors. Max Property Finance provides finance for properties with structural issues, damp problems, subsidence, or other defects that prevent standard mortgage approval.

Tenure and Legal Issues

Properties with short leases, flying freeholds, restrictive covenants, or unclear title issues. Max Property Finance works with specialist lenders who understand these legal complexities and provide appropriate financing solutions.

Location and Access Issues

Properties in flood risk areas, near commercial/industrial sites, with no proper road access, or in areas mainstream lenders avoid. Max Property Finance arranges finance for properties in challenging locations that still offer genuine value and investment potential.

Property Type Issues

Ex-commercial conversions, properties above shops, former pubs, studio flats under 30 square meters, or other unusual property types. Max Property Finance specializes in finance for properties outside standard residential categories.

Why Properties Become Non-Mortgageable

Understanding why properties are deemed non-mortgageable helps you identify opportunities. Max Property Finance educates clients on these factors:

Non-Standard Construction Types

Traditional lenders prefer brick and block construction. Properties built differently – including concrete high-rises, steel-framed houses, timber-framed buildings, prefabricated systems, or thatched roofs – often face mortgage refusal. Max Property Finance provides specialist finance for these construction types, recognizing that many are perfectly sound and valuable.

Ex-Local Authority Properties

Former council houses and flats, particularly concrete high-rises built in the 1960s-70s, frequently face mortgage restrictions. Max Property Finance works with lenders who understand ex-local authority properties and provide appropriate financing, especially post-refurbishment.

Short Leasehold Properties

Flats with less than 70-80 years remaining on leases struggle to obtain standard mortgages. Max Property Finance arranges short-term finance enabling lease extensions or bridging until standard mortgages become available post-extension.

Properties Requiring Major Repairs

Surveyors flag properties needing substantial structural work, damp treatment, roof replacement, or other major repairs as unmortgageable. Max Property Finance provides refurbishment finance covering both acquisition and improvement costs, enabling transformation to mortgageable condition.

Flying Freeholds and Unusual Tenure

Properties where part of the building extends over neighboring property, or other unusual tenure arrangements, deter traditional lenders. Max Property Finance arranges finance for these legally complex but often perfectly viable properties.

Properties Above Commercial Premises

Residential flats above shops, restaurants, or takeaways often face mortgage refusal due to perceived risks. Max Property Finance provides specialist finance for mixed-use and commercial conversion properties that standard lenders reject.

Properties Near Commercial or Industrial Sites

Homes adjacent to factories, main roads, railway lines, or industrial estates may be deemed unmortgageable by cautious lenders. Max Property Finance assesses these properties individually, providing finance when genuine value exists despite location challenges.

Flood Risk Properties

Properties in Environment Agency flood zones often face mortgage restrictions or rejections. Max Property Finance works with lenders who understand flood risk mitigation and provide appropriate finance for properties with flood history or risk.

Properties Without Proper Road Access

Buildings accessed via private roads, unmade tracks, or rights of way frequently struggle for mortgage approval. Max Property Finance arranges finance for properties with access challenges that don’t fundamentally undermine property value.

Japanese Knotweed and Other Environmental Issues

Properties affected by Japanese knotweed, invasive species, or contaminated land face mortgage difficulties. Max Property Finance provides finance contingent on treatment plans, enabling purchase and remediation before standard refinancing.

Types of Non-Mortgageable Property Finance from Max Property Finance

Max Property Finance provides diverse financing solutions for non-mortgageable properties:

Bridging Finance for Non-Mortgageable Properties

Short-term bridging loans enabling purchase of non-mortgageable properties with plans to make them mortgageable through refurbishment, lease extensions, or other improvements. Max Property Finance arranges bridging specifically structured for properties requiring transformation to mortgageable status.

Refurbishment Finance for Uninhabitable Properties

Combined purchase and renovation finance for properties in such poor condition they’re deemed uninhabitable. Max Property Finance provides funding covering acquisition and comprehensive refurbishment, preparing properties for standard mortgage refinancing post-renovation.

Auction Finance for Problem Properties

Rapid finance for non-mortgageable properties purchased at auction, where the 28-day completion deadline makes speed essential. Max Property Finance specializes in fast-tracked non-mortgageable property finance meeting strict auction timelines.

Non-Standard Construction Finance

Specialist lending for concrete, steel-framed, timber-framed, and other non-standard construction properties. Max Property Finance works with lenders who understand these construction types and provide appropriate valuations and finance terms.

Ex-Local Authority Property Finance

Specialized finance for former council houses and flats, particularly those that traditional lenders reject. Max Property Finance arranges both short-term finance and longer-term solutions for ex-local authority properties.

Leasehold Extension Finance

Short-term finance enabling lease extension for flats with short remaining terms, bridging the gap until standard mortgages become available post-extension. Max Property Finance structures these facilities coordinating with lease extension specialists.

Commercial Conversion Finance

Funding for properties recently converted from commercial use that don’t yet meet standard mortgage criteria. Max Property Finance provides finance recognizing the property’s residential potential even when traditional lenders remain cautious.

How Non-Mortgageable Property Finance Works with Max Property Finance

Max Property Finance structures non-mortgageable property finance to create pathways from rejection to approval:

Stage 1: Property Assessment and Issue Identification

Max Property Finance begins by thoroughly understanding why the property is non-mortgageable. We review surveys, identify specific issues, and determine whether problems are fixable or inherent. This assessment determines the optimal financing approach and realistic exit strategy.

Stage 2: Solution Planning

For properties with fixable issues (condition, short lease, etc.), Max Property Finance plans the solution pathway: refurbishment scope, lease extension process, treatment plans, or other remedial actions that will make the property mortgageable.

Stage 3: Specialist Lender Matching

Max Property Finance works with over 150 lenders including specialists who understand non-mortgageable properties. We match your specific property and circumstances to lenders most likely to provide appropriate finance on reasonable terms.

Stage 4: Finance Arrangement

We arrange non-mortgageable property finance covering acquisition and, where applicable, improvement costs. Max Property Finance structures loans with realistic terms acknowledging that resolving non-mortgageable issues takes time.

Stage 5: Issue Resolution

During the finance term, you implement planned solutions: complete refurbishments, extend leases, treat environmental issues, or simply hold until the property gains standard mortgage acceptability through market evolution.

Stage 6: Refinancing or Sale

Once issues resolve and the property becomes mortgageable, Max Property Finance facilitates refinancing to standard mortgages at competitive long-term rates, or helps coordinate sale if that’s your exit strategy.

Key Features of Max Property Finance Non-Mortgageable Property Solutions

Specialist Lender Access

Max Property Finance works with lenders who specifically understand and finance non-mortgageable properties, rather than forcing square pegs into round holes with mainstream lenders who’ll always refuse.

Individual Property Assessment

We don’t apply blanket rules. Max Property Finance assesses each non-mortgageable property individually, identifying whether genuine value exists and appropriate finance can be structured, even when multiple lenders have refused.

Solution-Focused Approach

Rather than simply financing the problem, Max Property Finance helps you plan practical pathways from non-mortgageable to mortgageable status, ensuring your finance serves a strategic purpose beyond short-term acquisition.

Flexible Loan Terms

Recognizing that resolving non-mortgageable issues takes time, Max Property Finance structures loans for 6-24 months with realistic timelines for refurbishments, lease extensions, or other remedial actions.

Refurbishment Cost Coverage

For properties requiring improvements to become mortgageable, Max Property Finance arranges finance covering both acquisition and renovation costs, providing comprehensive funding that addresses the complete journey to mortgageable status.

Bridge to Standard Finance

Max Property Finance’s non-mortgageable property finance is explicitly designed as a bridge to standard mortgages, not as permanent exotic finance. We plan exits to conventional lending from day one.

Creative Structuring

Non-mortgageable properties often require innovative financing structures. Max Property Finance has extensive experience with second charges, deferred purchases, option agreements, and other creative solutions that standard brokers don’t consider.

Understanding Non-Mortgageable Property Finance Costs

Max Property Finance provides transparent cost breakdowns for non-mortgageable property finance:

Interest Rates

Non-mortgageable property finance interest rates typically range from 0.7% to 1.8% per month (approximately 8-22% annually), higher than standard mortgages but reflecting the specialized nature and increased risk. Max Property Finance negotiates the most competitive rates available for your specific circumstances.

Arrangement Fees

Lenders charge arrangement fees typically between 2-4% of the loan amount for non-mortgageable property finance. Max Property Finance ensures these fees are justified and clearly disclosed upfront.

Valuation Fees

Specialist valuations for non-mortgageable properties cost £400-£2,500+ depending on property complexity and valuer expertise required. Max Property Finance coordinates with valuers experienced in non-standard properties.

Survey Costs

Detailed structural surveys are often essential for non-mortgageable properties, costing £500-£1,500+. Max Property Finance helps you understand what surveys are needed before committing to purchase.

Legal Fees

Non-mortgageable property transactions often involve complex legal work. Budget £1,500-£4,000+ for legal fees. Max Property Finance works with solicitors experienced in unusual property transactions.

Refurbishment Costs

For condition-related non-mortgageable properties, substantial refurbishment budgets are required. Max Property Finance helps you estimate realistic costs including 15-20% contingency for unexpected issues.

Specialist Treatment Costs

Japanese knotweed treatment, structural repairs, damp-proofing, or other specialist remedial work can be expensive. Max Property Finance ensures these costs are factored into your finance structure and viability assessment.

What Makes Max Property Finance Non-Mortgageable Property Finance Different?

Specialist Non-Mortgageable Expertise

Max Property Finance doesn’t just reluctantly handle non-mortgageable properties – we specialize in them. Our team has extensive experience with every type of non-mortgageable property and understands which issues are problematic versus merely unusual.

Extensive Specialist Lender Panel

Max Property Finance works with lenders who specifically understand non-standard construction, poor condition properties, legal complexities, and other non-mortgageable issues. We don’t waste time with lenders who’ll automatically refuse.

Honest Viability Assessment

Not all non-mortgageable properties are worth buying, even with specialist finance. Max Property Finance provides brutally honest assessment of whether properties can realistically become mortgageable and generate returns justifying the effort and cost.

Pathway Planning

Max Property Finance doesn’t just arrange finance – we help you plan the complete journey from non-mortgageable to mortgageable status, ensuring you have realistic strategies for making properties refinanceable.

Construction Type Expertise

Concrete construction, steel frames, timber frames, prefabricated systems – Max Property Finance understands the technical aspects of non-standard construction and works with lenders who provide fair valuations rather than blanket refusals.

Refurbishment Integration

For condition-related non-mortgageable properties, Max Property Finance seamlessly integrates acquisition and refurbishment finance, funding both the purchase and the improvements needed to achieve mortgageable status.

Exit Strategy Realism

Max Property Finance ensures you have genuine, achievable exits from non-mortgageable property finance. We don’t arrange exotic short-term loans without realistic pathways to standard refinancing or profitable sales.

Common Non-Mortgageable Property Scenarios Max Property Finance Handles

The Concrete High-Rise Ex-Council Flat

You’ve found a 1960s concrete high-rise ex-local authority flat at an attractive price, but every mortgage lender has refused due to construction type. Max Property Finance arranges specialist non-mortgageable property finance from lenders who understand these buildings, enabling purchase with a plan to sell to cash buyers or other specialist-financed purchasers.

The Uninhabitable Renovation Project

A structurally sound property in terrible decorative condition is deemed uninhabitable by surveyors, preventing mortgage approval. Max Property Finance provides combined acquisition and refurbishment finance, funding both purchase and comprehensive renovation that transforms the property to mortgageable condition for refinancing.

The Short Lease Flat

You’re purchasing a flat with only 55 years remaining on the lease. Standard mortgages refuse, but the property is undervalued due to the short lease. Max Property Finance arranges bridging finance for purchase, then coordinates lease extension finance, with plans to refinance to a standard mortgage once the lease extends beyond 80 years.

The Above-Shop Flat

A perfectly nice flat above a high street shop faces mortgage refusal due to the commercial premises below. Max Property Finance provides specialist finance for mixed-use properties, enabling purchase at a discount with plans to either sell to another specialist-financed buyer or hold long-term.

The Timber-Framed House

A well-maintained timber-framed property faces repeated mortgage rejections simply due to construction type, despite having no actual defects. Max Property Finance arranges finance from lenders who understand timber-frame construction and value these properties appropriately.

The Flood Risk Property

A property in a flood zone has been refused mortgages despite never actually flooding and having adequate flood defenses. Max Property Finance works with lenders who assess flood risk individually rather than applying blanket refusals, providing appropriate finance for properties with manageable risk.

The Flying Freehold Property

Part of your desired property’s structure extends over the neighboring property (flying freehold), causing mortgage lenders to refuse. Max Property Finance arranges specialist finance from lenders comfortable with these tenure arrangements, particularly when indemnity insurance is in place.

The Japanese Knotweed Affected Property

A property with Japanese knotweed presence or proximity faces mortgage refusal. Max Property Finance provides finance contingent on treatment plans, enabling purchase at a discount with funding for professional eradication before refinancing to standard mortgages.

Exit Strategies for Non-Mortgageable Property Finance

Max Property Finance ensures viable exits from non-mortgageable property finance:

Refurbishment to Mortgageable Standard

For condition-related non-mortgageable properties, complete renovations that address surveyor concerns, then refinance to standard mortgages. Max Property Finance coordinates the refurbishment and subsequent refinancing seamlessly.

Lease Extension and Refinancing

For short lease properties, extend the lease to 90+ years, then refinance to standard mortgages that accept longer leases. Max Property Finance structures finance covering both initial purchase and lease extension costs.

Sale to Specialist Buyers

Some properties will always be non-mortgageable. Max Property Finance helps you identify whether viable markets exist among cash buyers or other specialist-financed purchasers who’ll pay fair prices despite mortgage unavailability.

Time-Based Lender Evolution

Lender criteria evolve. Properties rejected today may gain mortgage acceptability in 18-24 months as lenders adjust policies. Max Property Finance structures longer-term non-mortgageable property finance for properties likely to gain mainstream acceptance with time.

Portfolio Retention

For investment properties generating strong rental yields despite being non-mortgageable, Max Property Finance can arrange longer-term or portfolio-level refinancing that enables retention without forcing sales.

Problem Resolution and Refinancing

Address specific issues making properties non-mortgageable (environmental treatment, legal resolution, etc.), then refinance. Max Property Finance coordinates problem resolution and subsequent standard mortgage applications.

Eligibility for Non-Mortgageable Property Finance from Max Property Finance

To secure non-mortgageable property finance through Max Property Finance, you’ll typically need:

Property Requirements

• Clear understanding of why the property is non-mortgageable
• Realistic assessment of whether issues are resolvable
• Property has genuine value despite mortgage unavailability
• Clear title or resolvable title issues
• Viable market for eventual sale or refinancing

Financial Requirements

• Typically 30-40% deposit (higher than standard mortgages due to increased risk)
• Adequate funds for refurbishment if condition-related non-mortgageability
• Cash reserves for holding costs during issue resolution
• Realistic budget including all remedial costs

Borrower Requirements

• Understanding of challenges and timelines for non-mortgageable properties
• Realistic exit strategy beyond “hope for the best”
• Reasonable credit history (some adverse credit accepted by Max Property Finance’s specialist lenders)
• Property or construction experience helpful but not essential

Strategy Requirements

• Clear plan for addressing non-mortgageable issues (if resolvable)
• Realistic timeline for issue resolution (typically 6-24 months)
• Contingency planning if primary exit strategy doesn’t materialize
• Understanding that exit options may be limited compared to standard properties

Max Property Finance assesses non-mortgageable property proposals comprehensively, ensuring finance serves a strategic purpose and you have realistic prospects for successful exits.

Frequently Asked Questions About Non-Mortgageable Property Finance

Can Max Property Finance really help if multiple lenders have refused?

Yes. Mainstream mortgage lenders apply narrow criteria and refuse many perfectly viable properties. Max Property Finance works with specialist lenders who assess properties individually and provide finance that standard lenders won’t consider.

Are non-mortgageable properties always bad investments?

Not at all. Many non-mortgageable properties offer excellent value precisely because mortgage unavailability deters competition. Max Property Finance helps you distinguish between properties with solvable issues offering genuine opportunity versus those with fundamental problems.

How long does it take to make a non-mortgageable property mortgageable?

This varies dramatically. Refurbishing condition-related issues might take 3-6 months. Lease extensions typically require 6-12 months. Some non-mortgageable properties may never gain standard mortgage acceptance. Max Property Finance provides realistic timelines based on specific circumstances.

Can I get a standard mortgage after fixing non-mortgageable issues?

Usually yes, if you genuinely resolve the issues causing mortgage refusal. Max Property Finance specializes in planning pathways from specialist non-mortgageable property finance to standard mortgages, ensuring you don’t remain trapped in expensive specialist finance unnecessarily.

Are non-mortgageable properties suitable for first-time buyers?

Rarely. Non-mortgageable properties typically require significant capital, higher risk tolerance, and often renovation expertise. Max Property Finance generally recommends these properties for experienced investors or buyers with substantial financial cushions rather than first-time buyers.

What’s the difference between non-mortgageable and unmortgageable?

These terms are used interchangeably. Max Property Finance uses “non-mortgageable” to describe properties that traditional mortgage lenders won’t finance, regardless of the spelling variation you encounter.

Can Max Property Finance help with ex-council properties?

Absolutely. Ex-local authority properties, particularly those built using non-standard construction, are a specialty area for Max Property Finance. We work with lenders who understand these properties and provide appropriate valuations and finance terms.

Why Choose Max Property Finance for Non-Mortgageable Property Finance?

Max Property Finance has established strong credentials in non-mortgageable property financing:

• Specialist Expertise: Deep experience with every type of non-mortgageable property and issue
• Specialist Lender Access: Over 150 lenders including non-mortgageable property specialists
• Individual Assessment: We evaluate each property’s specific issues rather than applying blanket rules
• Honest Viability Analysis: Realistic assessment of whether properties are worth buying despite challenges
• Solution Planning: Complete pathway planning from non-mortgageable to mortgageable status
• Construction Expertise: Technical understanding of non-standard construction types
• Refurbishment Integration: Seamless combination of acquisition and renovation finance
• Exit Strategy Realism: Ensuring genuine, achievable paths to refinancing or sale
• Proven Track Record: Hundreds of successful non-mortgageable property finance arrangements

Ready to Finance Your Non-Mortgageable Property?

Just because traditional lenders refuse a property doesn’t mean it lacks value or investment potential. Non-mortgageable properties often represent exceptional opportunities precisely because mortgage unavailability deters competition, creating pricing advantages for investors with access to specialist finance.

Max Property Finance provides the specialist non-mortgageable property finance, expert guidance, and solution planning you need to access these overlooked opportunities. Whether you’re targeting ex-council properties, non-standard construction, properties requiring renovation, or other non-mortgageable scenarios, we have the expertise and lender relationships to make purchases possible.

Contact Max Property Finance today for a no-obligation consultation about your non-mortgageable property. Let’s discuss the specific challenges, assess whether the property represents genuine opportunity, and create a tailored finance solution that enables acquisition and provides realistic pathways to refinancing or profitable sale.

Max Property Finance UK Ltd is an Appointed Representative of The Fiducia Network Ltd who is authorised and regulated by the Financial Conduct Authority. We are a credit broker, not a lender. We work with the whole of the lending market to find you the best finance solution for non-mortgageable properties.