We Buy Unmortgageable Flats

What Makes a Flat Unmortgageable?

A flat becomes unmortgageable when most or all mortgage lenders will not lend on it. The reasons fall into three groups: the flat itself, the lease and the building it sits in.

Whatever the cause, the pool of buyers shrinks to people who can pay cash. That usually means fewer viewings, lower offers and a longer time on the market.

Many sellers only find out when a sale falls through. The buyer's lender sends a valuer, reads the report and declines the mortgage, often weeks after you accepted the offer. If that happens, find out why before you put the flat back on the market, as the next buyer's lender is likely to reach the same view.

Can the problem be fixed?

Some causes can be fixed and some cannot. A short lease can be extended, although the reforms in the Leasehold and Freehold Reform Act 2024 that would make this cheaper are not yet in force. An onerous ground rent clause can sometimes be changed by a deed of variation with the freeholder (a legal document that alters the lease). In a block of 11 metres or more, you may not need an EWS1 form (a fire safety assessment of the outside walls). Many large lenders will now lend if the building is in a funded remediation scheme, where the government or developer pays for the work, or you can provide a Leaseholder Deed of Certificate (a form confirming whether your lease is protected from building safety costs). Unrepaired defective construction, or a flat above a takeaway, is much harder to change. Where a fix is possible, weigh its cost and the time it takes against selling the flat as it stands.

Taller blocks and building safety

If your block is at least 11 metres high or has five or more storeys, check whether your lease qualifies for protection under the Building Safety Act 2022. If it does, you pay nothing towards replacing unsafe cladding and no more than a capped amount towards other historic safety defects. The protection also passes to your buyer. Your solicitor will usually ask you to complete a Leaseholder Deed of Certificate to show whether it applies. These rules cover England; Wales has its own Building Safety (Wales) Act 2026, which is still being brought into force. This is general information, not legal advice, and your solicitor can confirm how the rules apply to your building.

We buy flats that lenders turn down for all of the reasons on this page. We have done so since 2003, so we can usually tell you quickly whether we can make an offer.

Why Sellers of Unmortgageable Flats Choose Us

If your flat is hard to mortgage, you have three main ways to sell it: through an estate agent, at auction or direct to a cash buyer like us. Each has trade-offs. The right one depends on what matters most to you: the highest price, a fixed completion date or taking the risk of another lender refusal out of the sale.

Selling through an estate agent

An estate agency sale (sometimes called private treaty) usually gives you the best chance of the highest price. But most buyers need a mortgage, so if lenders turn the flat down, you are left with the cash buyers and investors who happen to find the listing. That means fewer buyers and a longer time on the market. There is also a risk that any buyer who does apply for a mortgage is turned down at the valuation stage.

Selling at auction

A traditional unconditional auction often suits an unmortgageable flat, as many auction buyers are cash investors who expect difficult titles. Contracts exchange when the hammer falls, and completion usually follows within 28 days, or whatever the auction terms say. The buyer is legally bound from that moment, so if their funding falls through, they risk losing their deposit rather than simply walking away. The trade-off is price: auction results are typically below open-market value, and there are fees to pay.

Selling direct to us

This is often the simplest route, especially when a sale has already fallen through: there is no lender, no mortgage survey and no chain. We give you an initial figure within 24 to 48 hours to show whether we can help. We then view the flat, and the written offer that follows is the price we intend to pay. If something material comes up during the legal work, we discuss it with you openly rather than use it to cut the price. The trade-off is that our offer is usually the lowest of the three routes, as it reflects the risk and cost we take on.

Which route is right for you?

If you have time and want the highest possible price, an estate agency sale is the usual starting point, though a cash-only buyer pool keeps it slow. If you want a fixed completion date and buyers who are used to problem flats, a traditional auction may suit you better. If a sale has already fallen through at the valuation stage and you want certainty, selling direct lets you sell the flat as it stands.