Specialist buy-to-let mortgages:
Unusual properties
An unusual property can be perfectly habitable and highly desirable but still fall outside mainstream mortgage criteria. The challenge is often not the property’s quality, but how easily the lender could value and resell it if the mortgage fell into default.
There is no universal definition of an unusual property. A home accepted by one lender may be declined by another because of its design, location, previous use or limited market.
What makes a property unusual?
Examples can include:
Converted churches, chapels, schools, barns or windmills
Listed and architecturally important buildings
Eco-homes and highly individual contemporary designs
Very large houses or properties with extensive land
Homes with substantial outbuildings, annexes or leisure facilities
Properties in isolated or unusual locations
Live/work accommodation
Homes with commercial premises nearby or within the same building
Properties with unusual layouts, access arrangements or title restrictions
Houses offering significantly more accommodation than neighbouring properties
Some features may be acceptable individually but become more difficult when combined. A remote converted chapel with private drainage, several acres and limited comparable sales, for example, is likely to require more specialist consideration than a conventional village house.
Valuation and marketability
The lender’s valuer will consider more than the property’s condition. They must also establish its value, likely demand and how long it might take to sell.
Unusual properties can be difficult to value because there may be few genuinely comparable sales. The price agreed between buyer and seller does not necessarily demonstrate the value a lender will adopt.
A lender may require a specialist valuation, structural survey or additional reports concerning matters such as access, drainage, planning, listed-building restrictions or environmental risks.
Property use
The intended use must be clear from the outset. A property containing offices, treatment rooms, workshops, holiday accommodation or extensive agricultural land may not qualify for an ordinary residential mortgage.
Annexes can also require closer examination, particularly where they are separately occupied, let to tenants or capable of being sold independently.
Where the property combines residential and commercial use, a semi-commercial mortgage may be more appropriate.
Deposit and lender choice
Some lenders impose a lower maximum loan-to-value on unusual properties, while others decide each case individually. The applicant’s income, assets and financial resilience can become more important where the property has a restricted resale market.
Specialist building societies and private banks can sometimes take a more individual approach than lenders relying heavily on automated criteria. Private banks may be particularly relevant for higher-value properties or clients offering substantial assets or a wider banking relationship.
Establishing mortgageability early
Unusual properties should ideally be reviewed before significant valuation, legal or auction costs are incurred. Useful information can include the sales particulars, photographs, floorplan, title, planning history, previous use and details of any land or outbuildings.
An experienced specialist mortgage adviser can present the complete property to suitable lenders and establish which features require further investigation before an application is submitted.
Frequently asked questions.
Every client and every mortgage is different, but there are some questions we are asked regularly.
From affordability and deposits to complex income, expat mortgages and specialist property finance, our FAQs explain how different lenders may approach different circumstances.
Read our perspective….
See how we’ve helped….
