The mortgage market can be unpredictable. Issues can arise at a moment’s notice regarding a variety of facets. Recently, we’ve seen a surge in enquiries about properties with single skin walls.
Whether it’s a small part of an extension or a substantial section of the property, lenders are
becoming increasingly cautious about these properties.
The Shrinking Lending Pool
As more lenders turn away from single skin wall properties, the remaining options become
fewer and more competitive. This can lead to a rapid shift in lending criteria, leaving
homeowners and buyers in a difficult position.
The impact of this trend is twofold:
– Property Values: Reduced availability of mortgages can negatively affect property
values, as potential buyers face higher risks and limited financing options.
– Seller Challenges: Homeowners with single skin walls may find it harder to sell their
property due to the restricted mortgage market.
Common Scenarios
We’ve encountered several cases highlighting the challenges posed by single skin walls:
– Properties with a small percentage of single skin walls (e.g., 13%) being declined by
major lenders.
– Valuers assuming single skin construction based on potential indicators, leading to
mortgage rejections.
– Properties with a significant portion of single skin walls (e.g., over 20%) facing
difficulties securing a mortgage.
Your Options
If you’re considering buying a property with single skin walls, you have a few options:
– Cash Purchase: This is the most straightforward but often less accessible route.
– RICS Valuation: Commissioning a RICS valuation can clarify the extent of the issue
and potential remedial works required to make the property mortgageable.
– Specialist Lender: There are still some lenders willing to consider properties with
single skin walls, although options may be limited and terms less competitive.
– Bridging Finance: This can provide a short-term solution while you undertake
necessary work to make the property mortgageable.
A Crucial Step
Regardless of the path you choose, it’s essential to obtain a full structural valuation before
exchanging contracts. This will provide crucial information about the property’s condition
and potential risks.
The mortgage landscape for properties with single skin walls is evolving rapidly. If you’re
facing challenges, seeking expert advice can help you navigate the complexities and find
suitable solutions.
If you are looking at purchasing a property that might have defects, we’d suggest talking to
one of our experienced brokers to help guide you through the maze. Feel free to get in touch
www.bmimoney.co.uk or call 01844 390910
