Selling an Uninhabitable Property

Estimated reading time 13 minutes

If you’re trying to sell a property that’s not suitable for living, it means that there are some issues with the house that make it unsafe or unliveable. Selling this kind of property can be more complicated and difficult than selling a typical home. However, don’t worry, we have created a guide to help you navigate the process and sell your property quickly. The guide provides practical advice and tips on how to overcome the challenges and get the best deal possible for your property.

When a freehold or leasehold house or flat or in fact any type of property is uninhabitable, it means that it’s not safe or suitable for people to live in for various reasons. There is no single feature that can make a property uninhabitable, but there are laws in the UK that help define it.

Is my house or flat considered uninhabitable?

The UK Government Homes (Fitness for Human Habitation) Act 2018 states that a property may be considered uninhabitable if it has several negative features such as poor condition, major damp problems, inadequate ventilation, dangerous layout, lack of clean water supply, faulty toilets or drains, insufficient space for food preparation, and more. It’s essential to know that having just one of these problems may be enough to make the property unfit for living. Although this list is not exhaustive, it’s a guideline to assess your home and determine if a buyer, mortgage lender, or anyone else will consider it uninhabitable. It’s important to be aware of this because selling such a property can come with additional challenge.

Can a buyer get a mortgage for an uninhabitable property?

Selling an uninhabitable property can be challenging because many potential buyers may not be able to get a mortgage for it. This is because mortgage lenders are often reluctant to issue mortgages for problem properties that could be difficult to sell in the future. They may be concerned about the potential resale value and the risk of the homeowner defaulting on their loan payments. If a property is deemed uninhabitable, it could make it even more challenging for a potential purchaser to secure a mortgage.

However, you could consider contacting a sell house fast company like Gaffsy who specialises in purchasing all types of properties, including those that may be considered problem properties. Gaffsy has the financial resources available to buy your house fast without the need for a mortgage, which can make the selling process quicker and more straightforward.

Why do purchasers buy uninhabitable homes?

Understanding the negative aspects of selling an uninhabitable property is essential, as it could deter potential buyers from making an offer. However, highlighting the property’s positive features can be a good strategy to overcome initial doubts and convince someone to buy it.

Profitable investment

Buying an uninhabitable property can be a risky venture, but it can also be a profitable investment. Renovating the property and reselling it later can result in a good return on investment for the buyer.

Affordable price

Uninhabitable properties typically sell at a reduced price compared to other properties, making them more attractive to buyers looking for a bargain. This could increase the interest in your flat or house and lead to a quicker sale.

Attracting builders

Property developers looking to build new homes in the area might be interested in buying uninhabitable properties for the land. Selling your property to a developer could result in a quick and hassle-free sale, as they would demolish the existing building and rebuild on the same land.

Why might selling an uninhabitable property prove difficult?

It’s important to be aware of the downsides when selling an uninhabitable property, especially if you’re working with an estate agent and have multiple viewings where potential buyers can inspect the property before making an offer. During these viewings, visitors may bring up negative aspects of the property, so it’s helpful to be prepared with responses to address their concerns and maintain their interest in buying.

Risk of loss

Some buyers may be looking for a bargain property with the intention of renovating it. However, these types of homes can be risky investments because there is no guarantee that the renovation will pay off.

Difficulty securing a mortgage

If a potential buyer needs a mortgage to purchase your uninhabitable property, they may have trouble finding a lender willing to provide the loan. This could make it impossible for them to purchase your property.

Structural issues

Depending on the problems with the property, there is a risk that the building may be structurally unsound and too expensive to restore to a livable condition. This can be a major concern for buyers and could deter them from purchasing the property.

Is it worth renovating an uninhabitable property?

It’s not uncommon for properties to require some level of repair or renovation work before being put on the market. However, if you have an uninhabitable property, it’s likely that there are significant issues that require substantial time and financial investment to resolve before the property can be sold.

When deciding whether to invest in repairing or renovating an uninhabitable property, it’s important to consider the potential benefits. By making the necessary improvements, you can transform the property into a habitable home that is more valuable to potential buyers. This, in turn, can help you set a higher asking price and increase your chances of selling the property.

On the other hand, if you choose not to invest in repairs or renovations, potential buyers will assess how much it would cost them to make the property habitable and adjust their offer accordingly. By taking the initiative and improving the property yourself, you have a better chance of selling the property for an increased sale price.

However, it’s important to keep in mind that repairing or renovating an uninhabitable property requires a significant financial investment. Before making the decision to pursue these improvements, it’s essential to ensure that you can afford the costs and that the potential benefits outweigh the risks.

What are the 4 options for selling an uninhabitable property

When you’re faced with the task of selling your uninhabitable property, it’s important to consider the various options available to you. Deciding which approach to take can be a challenging decision, as each method has its own set of advantages and drawbacks.

There are four main options when it comes to selling your uninhabitable property: using a quick home buying company, selling through an estate agent, selling at a property auction, or selling the property yourself. It’s important to evaluate each method carefully before making a decision.

To make the process easier, it can be helpful to create a budget for the sale of your property that takes into account factors such as commission, the length of time you’re willing to wait for a sale, and other considerations. Once you have a clear idea of your needs and wants, you can compare them to the specifics of each option and choose the one that best suits your situation.

Quick house buying company

One of the fastest ways to sell an uninhabitable property is by working with a quick cash house buying company. These companies are able to complete the purchase process in a matter of weeks, as they have the financial resources to buy properties outright without waiting for mortgage approval. This reduces the time and risk associated with the purchase, and allows for competitive and speedy offers to be made on properties of any age, condition, shape, size, or type.

The advantage of working with a reputable quick home buyer is that you won’t have to pay any commission for the sale of your property. For example, Gaffsy has a proven track record of purchasing properties in London and throughout the UK, including uninhabitable homes, flats with cladding, and homes with a variety of other issues.

Choosing to sell to a quick cash house buying company can be a wise decision for those looking to sell their uninhabitable property quickly and without any commission fees. However, it’s important to carefully consider all of your options before making a decision.

Estate agent

Another option you might want to consider for selling your uninhabitable home is to enlist the services of an estate agent, such as those found on the Rightmove website. The benefit of this approach is that you won’t have to do much, if any, work yourself. Instead, the estate agent will take on the responsibility of creating a listing for your property that showcases the interior and exterior through photographs, and then advertise your home online, in local newspapers, and in their office. They’ll also schedule viewings for potential buyers to see your home in person and will negotiate offers, hopefully taking a serious offer through to completion.

However, it’s important to keep in mind that estate agents typically charge a commission for their services, which will be deducted from the sale proceeds, thereby reducing your final net sale profit. Additionally, it can take a significant amount of time to secure a buyer for your uninhabitable home when using an estate agent. In fact, it’s not uncommon for the process to take over a year, which may not be the best option for homeowners who want to sell their properties quickly.

Auction company

Alternatively consider using an auction to sell your uninhabitable home, where potential buyers will bid against each other to increase the sale price. The goal is to generate a lot of interest in your property so that the final price is favourable.

However, keep in mind that auctioneers charge commission for their services, including creating and promoting a listing for your property, organising the auction, and managing the sale process for the winning bidder. This commission is typically a percentage of the final sale price and will be deducted from the proceeds of the sale.

You can try negotiating with the auctioneer to lower their commission or pass some of the sale costs onto the buyer. However, using an auction is not the quickest option for selling your property, as there will be a waiting period between listing your property and the actual auction, and if it sells, the buyer typically has around 28 days to finalise the purchase.

Consider asking the auctioneer if it’s possible to shorten the deadline for the winning bidder to complete the purchase process. Some may be willing to agree, but be aware that others may extend the time frame beyond 28 days.

Selling it yourself

Selling an uninhabitable property on your own can be a challenging process that requires a significant investment of time and resources. You will need to create a listing, advertise your property, organise viewings and negotiate with potential buyers. This option is not recommended for most people unless they have experience in selling properties or have a friend or family member with expertise who can help them for free.

Finding a buyer can also take a long time when selling on your own, and it may take more than a year to receive a serious offer. It can be even more challenging to sell a non-conventional property, such as an uninhabitable house or flat.

The only advantage of selling on your own is that you won’t have to pay any commission to estate agents or auctioneers. However, you can achieve the same result without the stress by contacting a quick property buyer. They will offer a fast and competitive price for your uninhabitable property and won’t charge any commission, saving you time and money.

Is my property uninhabitable?

To determine whether you own a property that is considered uninhabitable, you will need to assess the condition of the property and compare it to local regulations and standards. Generally, a property is deemed uninhabitable if it is not safe or suitable for people to live in due to structural problems, lack of essential amenities, or other hazards.

Some common reasons why a house or flat might be considered uninhabitable include lack of ventilation, absence of a kitchen or bathroom, major structural damage, and infestations of pests or mould. Additionally, if the property is in an area that is prone to natural disasters or other hazards, it may be deemed uninhabitable due to safety concerns.

If you are unsure whether your property is considered uninhabitable, you should consult with a professional property inspector or local housing authority to evaluate the condition of the property and advise you on any necessary repairs or improvements. It is important to address any issues that render your property uninhabitable before attempting to sell it or rent it out, as failing to do so could result in legal and financial consequences.

Why would you buy an uninhabitable house or flat?

Buying an uninhabitable property can be a profitable investment, as renovating and reselling it can result in a good return on investment. Uninhabitable properties are also typically sold at a reduced price compared to other properties, which makes them more attractive to buyers looking for a bargain. Property developers may also be interested in buying such properties for the land to build new homes in the area.

Will a mortgage company lend on an uninhabitable house?

Obtaining a mortgage for an uninhabitable property can be challenging as many lenders may be hesitant to issue a loan due to concerns about the property’s resale value and the risk of default on loan payments.

Should I renovate before selling my uninhabitable home?

Investing in renovating an uninhabitable home can increase its value and make it more attractive to potential buyers. However, it requires a significant financial investment, and it’s important to consider the potential benefits and costs before deciding to proceed. In general you are not required to renovate an uninhabitable home before putting it on the market

How long will it take to sell my uninhabitable property?

The timeline for selling an uninhabitable property can vary depending on the method used. Traditional estate agents may take several months to find a suitable buyer, arrange viewings, and negotiate offers. Auction houses can offer a quicker sale, with a typical timeline of six to eight weeks from listing to completion. However, there is a risk of not achieving the desired sale price. Cash house buyers can offer the quickest sale, with completion possible in as little as days.

Do I have to pay commission when selling my uninhabitable home?

When using a cash house quick buyer or if you find a buyer without any assistance then you won’t have to pay fees. Note, estate agents and auctioneers typically charge a commission based on the sale price of the property.

How do I know I can trust Gaffsy to buy my property?

Gaffsy is a member of The Property Ombudsman which is an organisation that provides policies to protect homeowners against fraud in property buying sector. Also check out our testimonials. (link to the page with the testimonials)

If you have an uninhabitable home and want to sell it contact Gaffsy today, we can make you a no-obligation cash free offer for your uninhabitable house and uninhabitable flat. 

Gaffsy can provide a quick sale, often within a matter of days, without the need for a lengthy and complicated chain. Additionally, Gaffsy has a reputation for being trustworthy and transparent, with no hidden fees or charges and make the process of selling an uninhabitable property much smoother and stress-free.

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