Can’t Get A Mortgage On That Investment Property?… NO PROBLEM | Buy To Let Investing Tips


today I’d like to talk about
unmortgageable properties where to find them and how you can make real money out
of them. Hi my name’s Tony Law from your first four houses and my channel is all
about helping you achieve financial freedom through property if this is your
first time here be sure to subscribe to the channel and click the bell
notification icon so you don’t miss out on any of the free content that I give
you each and every week so today I’d like to talk about unmortgageable properties
and how they might represent a fantastic opportunity for you.But before we get
into this I just have to say I’m not FCA approved and so before you take any
action on in any of the stuff that I’m actually sharing with you today it’s
crucial you speak to an independent mortgage broker somebody with access to
the whole of the market who is FCA approved and take their advice over mine.
So I want to do this in two parts firstly I want to at
what actually makes a property unmortgageable and where to find them
and secondly what you can do with a n unmortgaged property to make money when
you do find them so let’s kick things off with condition first of all derelict
properties are a great example of an unmortgageable property
together with anything with structural defects, for example if a property has
broken wall ties if there’s a wall that’s bowing out any substantial
cracking damp dry or wet rot these are all good examples of properties that are
probably going to be unloggable if there’s a history of subsidence or if
it’s non-standard type of construction or indeed unusual construction but even
if the property has no kitchen or no bathroom or I found out if a property
has two kitchens these can all be reasons for the property being are
mortgageable what about the evil evil Japanese knotweed hated by all property
investors if you’ve got that on a property it’s probably going to be a
mortgageable so let’s move on to location so if the if the place has had
is in a floodplain or close to floodplain yes that’s probably going to
be a real problem with regards to getting a mortgage if you go to this
website you’ll find that there’s it gives you all the information you can
need you just type in your postcode and it will tell you immediately where you
are in relation to any floodplain if there are any boundary disputes or if
there’s a planning application that’s been applied for incorrectly if you are
subject to any coastal erosion now where I’m based on the south coast there are
some real issues there may be less of an issue if you in the middle of the
country areas already properties are built on or near any landfill sites are
going to be a problem also if you’re close to any mining works so let’s look
at now leasehold flats if you have a flat with obviously at lease if it isn’t
defective in any way the lease is defective in any way yes that’s probably
gonna be a big issue you need to check your paperwork carefully there or make
sure that your solicitor does indeed make sure he checks that lease paperwork
carefully if it’s a short lease for example if it’s typically less than 70
years big problem if you’re on anything above a fifth story in a tower block or
if you’re above certain types of shops it’s probably gonna mean that the
properties are mortgageable let’s move on to tenants so if you have frankly any
kind of tenant Aditi that you’re trying to purchase if there were tenants in
there at the moment well actually that might well be the end of the story you
may well not be able to get a mortgage but especially if there was a sitting
tenant or if it’s on a regulated tenancy that’s going to be a major issue by the
way if this stuff is in any way helping you I’d love it if you could just click
on the thumbs up button below there it really helps me if that’s okay let’s
talk about the value if the property is less than 40,000 pounds yet you’re
probably not gonna be able to get a mortgage on that but also if it’s
clearly obvious that you’re buying this property below market value yet you’re
probably not going to be able to get a mortgage on it reality is you might be
able to but in certain situations yeah buying below market value you may well
not be able to get a mortgage on it so what do you actually do if you actually
find one of these unmarketable properties with the very first thing you
need to do is to do double the amount of due diligence that you would normally do
so if it’s a legal planning a release related issue then obviously you’ve got
to probably palm that onto your professional people maybe a lease
advisor maybe a planning consultant obviously your solicitor these are the
people that are gonna look seriously at that but if it’s maybe a structural
issue for example and the question is is do any remedial work that you could do
that might actually make that property mortgageable
so for example if there’s no kitchen in the property we’ve already talked about
this well frankly you’re probably not gonna be able to get a mortgage on it
could you maybe get the the owner of the property into some kind of an option
agreement where he signs to say that he’s going to to commit to buy that to
sell that property to you you then do some remedial work or maybe fit the
kitchen maybe unpin underpin the subsidence maybe remedy the structural
issue whatever it might be and then the property can then become mortgageable
that’s a great way to actually deal with any structurally based issues with the
property obviously the other way that you could approach it is you could look
at some other kind of way of financing it now I’ve done I’ve done various
videos on this but I’m the obvious of weight one that comes to mind is could
you maybe bridge that property until you can get it to a mortgageable state and
then get rid of the bridging which is always going to be expensive I would
suggest for what it actually is and then maybe put a conventional type of
mortgage in place being a homeowner mortgage or a buy to let mortgage again
I reiterate I am NOT a mortgage broker you need to speak to an independent
mortgage broker and take their advice on this not mine but how can you actually
find on mortgageable properties well what are the obvious things to do is to
make it clear to the estate agents that you’re talking to who hopefully you’ve
brought up an awesome level of rapport we’ve just make it clear that actually
you are in a position to actually deal with
unmoor gettable properties and they themselves may well be able to put some
properties in your direction that might well work for you but also search online
go to Zoopla and if you go to the advanced search feature you can actually
just type in for example cash buyers and yes a cash buyer may well mean that
they’re about to be repossessed that’s probably the obvious one but it may well
also mean that there are cash that they’re looking for cash buyers because
the property is simply unmoor gobble but you can also search online just go to
Google or just start searching for properties and mortgageable properties
or cash buyers and you may well be quite surprised what actually comes up so have
I missed out any examples of our mortgageable properties if I have I love
it if you could take a moment to actually drop your comments in the box
below if you can think of any other examples I’d love to be able to add them
to my list I really hope you found it helpful for more information like this
be sure to subscribe to my channel and while you’re here download this 50-point
checklist which will help you with the next time you buy invest my name’s Tony
Law from Your First Four Houses with online training that helps build your
property portfolio

12 thoughts on “Can’t Get A Mortgage On That Investment Property?… NO PROBLEM | Buy To Let Investing Tips

  • Can you make any remedial work on a flat that is on the 20th floor or a concrete council building? I think some properties which are unmortgagable will remain unmortgagable.

  • Just brilliant! Seriously, Is there anybody better in this space, than Tony? I'd bet my mortgage that there isn't. Thanks again Tony for a brilliant video! 😀

  • I agree with Civci, great quality informative videos! It's a shame your channel seems to have some sort of a glitch with the "like" button and subscribers – they don't work. I have subscribed to your channel, and have liked just about every video but it never shows up on the count meter? Seems as though the YouTube abuse bots are going haywire and filtering every single like. Tried using Microsoft edge as well as Firefox. This is tragic since your videos easily would amass plenty likes (100+/vid after 1000 views)….don't want you to feel discouraged and give up with the helpful content 🙂

  • Hello, to add something about the video, your last question (any other unmortgageable properties) – there's quite a niche market in the mobile homes sector. In America these (manufactured homes on wheels) are now seen as real estate and can be bought on a mortgage, whereas over here they're still seen more like a terribly depreciating "vehicle", thus cannot be mortgaged through the usual mainstream lenders. I reckon they'll gain popularity here at some point when people start to see the value for money (modern designs, up to 50% cheaper than bricks and mortar) and when all the negative stereotypes begin to dissipate. Much of it is just a case of lack of exposure/information. Given the chance to purchase a quality manufactured home at a reasonable price (garden space included) over a poky flat that's only draining their cash-flow on rent, many young couples would jump at the opportunity.

  • Just to add to the list of unmortgagable properties, I couldn’t get a mortgage on my house because it needed a full rewire. The elderly couple had moved out into sheltered accommodation and i paid for the rewire then my mortgage was approved

  • Flying freehold causes problems. Most mortgage companies require the flying freehold area to be less than 30% of the total building.

  • I've got a question: if shops can be converted as residential use, why they are so much cheaper than any other properties? Does it worth be considered?

  • Tony could you do a video to expand on options and what’s lawfully involved to make the process as smooth and secure as possible?

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