Unmortgagable house...

[PicturePerfectLife]

Ok, so I don't actually know if the house is unmortgageable or not yet.

I'm a first time buyer and recently started looking again after a 2 year break. I had an offer accepted on a flat back in 2021 but the purchase fell through after 4 months due to it being unmortgageable (free holder and management company were both absent). It took months to actually find that out and boy was it stressful. Basically I was offered the mortgage, just not on that flat and ended up having to walk away. Anyway, I decided to take a break as prices shot up but I have decided it’s time to start looking again. After the last experience I’m definitely more cautious and keen to ask questions and know what I’m getting myself into.

I've seen a house that's been on the market since March, reduced twice and still not sold. It's a lovely 3 bed semi with loads of potential. Massive driveway that could easily fit 3 cars on there, big back garden, rooms are a good size in a lovely quiet area but it's had a dodgy looking extension built and the extension roof needs repairing. I haven't been to view it yet but went to see the outside and speak to the neighbours and it's a mess (overgrown garden, rubbish everywhere etc) but it could be made really nice. It’s been rented out for years apparently.

The extension roof has a tarpaulin over it so god knows what state it is in. The rest of the house and roof looks to be ok (new bathroom and kitchen put in) but when I spoke to the agent she said it hadn’t had a survey yet so no idea if there’s any underlying issues. They had some interest and a couple of low offers a while back but all been rejected but apparently the vendor is keen to sell and is willing to negotiate. The biggest worry is the EPC rating which is a G. There’s no gas in the village and the house doesn’t have any electric heaters, just a log burner. I know there are government grants that will help pay towards the work that’s required. I’ve spoken to my mortgage broker and apparently this can be an issue, as well as the repair work and essentially make the house unmortgageable.

I’m not concerned about the roof as my dad is a roofer and he has lots of friends who are plumbers, sparkies etc that can help but ultimately it’s not my decision and I’m at the mercy of the mortgage lender 🙄. My broker is going to look into over the weekend and give me a yes/no before I waste my time going to view it, but it seems such a shame that it might be unmortgageable, especially when these issues can be rectified.
Hopefully I’ll have an answer by Monday and all I can do is wait and see, but I just thought I’d come on here and see if anyone had any advice or knows what the likelihood is of it being unmortgageable?

Thank you!

I think you’ll just have to wait and see. These types of property tend to be sold to cash buyers who don’t always even bother with a survey. They offer low and take a punt and often make a profit but will occasionally get stung. You don’t sound like you can afford to be stung, so hold tight and keep busy this weekend until you hear.

@SpanishSummer yes I thought it might be cash buyers only but the estate agent hasn't said this and they know I need a mortgage. I suppose it's not up to the agents to find out this information but seems a bit silly when it's been on the market for so long. Clearly it's because something is wrong. It does seem ridiculous that the house might be unmortgageable due to the roof as it's only the extension that needs repairing (as far as I'm aware) and the EPC rating could be improved. My broker said one question the lender might ask is if it's liveable from day 1. I haven't seen inside yet but the kitchen and bathroom look new (no idea if their actually functional though)

The owner/landlord probably selling due to its EPC G rating. There are new rules that the rating must be a C or above for new tenancies as early as December 25. You should get this house for a very good price. Could your dad investigate and view it with you. All the best.

@LindaDawn I thought so too! I read about epc ratings being an issue when renting properties out but didn't realise it would be a problem when buying. It's currently marketed (I think) for the right price if in immaculate condition, which it's not so I reckon I could knock them down a bit. It's just the mortgage and whether it is mortgageable that's the question.

@LindaDawn and yes I will definitely take my dad with me if I do end up viewing the house.

I think estate agents are supposed to tell you if a sale has fallen through due to a survey, so might be worth asking this by email to get their answer in writing.

Also, you could try calling a couple of banks and ask them what sort of property they consider unmortgageable - general disrepair might not be enough. I seem to recall it's to do with the state of the bathroom/kitchen, but ask them because they'll happily tell you what their policy is.

Can you share a link to the EPC or send it to me in a direct message please.

By the way, it's been illegal to rent houses out with an EPC lower than an E since April 2020 unless it has an exemption certificate, or is listed with an exemption.

So, this guy is a slumlord, and I would expect any repairs, maintenance and extensions to reflect this fact. I wouldn't go near.

Good point @KievLoverTwo badly maintained properties can be full of hidden problems.