Bridging Loans for Unmortgageable Property
Bridging Finance — Unmortgageable Property
“Unmortgageable” doesn't mean worthless, it means a mortgage lender's checklist failed. No working kitchen or bathroom, a short lease, structural movement, non-standard construction, Japanese knotweed, a flat above a takeaway: all routinely declined, all routinely bridgeable. We lend on what the property is worth and what you'll do with it; you fix the problem; then you refinance or sell.
The checklist failures
What makes a property “unmortgageable”.
Every one of these is a discount at purchase and a profit when cured. That is the trade, and it is only available to buyers whose finance doesn't run on a mortgage lender's checklist.
- Condition no kitchen or bathroom, derelict, fire or flood damage, unfinished works
- Lease too short for mortgage criteria, or defective lease terms
- Structure subsidence history, movement, non-standard or concrete construction
- Legal and title flying freeholds, missing rights, restrictive covenants, title splits in progress
- Use and mix living space above commercial premises, agricultural ties
How the bridge works
The Exit Is The Cure
We lend at up to 70% LTV on residential investment security, from 0.79% per month, with the works funded alongside where needed through refurbishment finance. The exit is the cure: extend the lease, do the works, resolve the title, then refinance at the corrected value or sell. Auction purchases are a natural fit, since auction stock is disproportionately unmortgageable. If a bank has already declined you on the property, that is not a mark against the deal here.
Common questions