Have you ever tried buying a "cash-only" property with a mortgage?

Car1980

In my experience they're landlords who want to get rid of a property with a view to selling it on to another landlord and just can't be bothered with mortgage buyers.

Misconception

PasturesNew wrote: »

In short: it's pointless.

Cash only is for a variety of reasons, usually because there is something VERY expensive to fix on it and often because even if you have the £20-30k to fix it it'll then be unsellable.

Mortgages are a loan against the lender's ability to sell it and get their money back if you can't pay. Cash only properties are a "problem" for some reason or other.

Cash only properties are best suited to: investors or builders with skills, who have deep pockets and knowledge to fix the problems and who know what they are doing when they buy it and have an ulterior motive for buying it (e.g. demolish it) or to rent it out as a BTL property.

In the main, cash only properties are not something you can move into and live in.

You like them because they are cheaper and you can afford them (with a mortgage) and because you are lured into how lovely they look. You imagine they are as good as other houses that are more expensive, but they are a moneypit usually.

Yes, I like them but it's not always because it's cheaper. I usually like Edwardian/Victorian properties and they're not really common around here.

They prop up on as a cash-buyer only more often for some reason. I contacted one agent they said it's because it's in derelict condition.

I guess I'll move on and lower my expectations then.

Slinky wrote: »

Re-read the post, she said they didn't require a mortgage.

Sorry, you're correct.

enthusiasticsaver

No I would not buy a cash only property. That usually means it is unmortgageable, so non standard construction or requires a lot of fixing up. Unless you are a builder they will be expensive to sort out and applying for a mortgage on one will inevitably mean a decline and wasted survey/legal fees. Move on to something else.

Owain_Moneysaver

You're unlikely to get a mortgage for a cash-only property except with a retention to cover the necessary work, but that may not be an obstacle. A basic kitchen for mortgage purposes is just a sink, couple of cupboards/worktop, and space and connections for a cooker and a fridge.

On the other hand if it's something like a precast concrete construction which needs a whole programme of external insulation and over bricking you could be looking at tens of thousands of pounds.