Sky News: Research into flats without lifts becoming un-mortgageable

Whilst I have not seen a decline for this specifically, surveyors are being asked for more information about Leasehold flats, and their view on the ability to resell, more than other types of property. I have seen declined cases where there are too many rental properties in a given area of flats, onerous leasehold terms on ground rents and maintenance costs, the attractiveness of the property and its local area, and other somewhat spurious reasons.

Many lenders will issue mortgages on flats without a lift, particularly in low-rise buildings. However, acceptance depends on several key factors — mainly the floor level, property type, fire safety and future resaleability. Some lenders will lend on higher-rise flats without a lift, subject to the valuer's comments; others state they want flats higher than four floors to have a lift. Each of the banks and building societies has different rules. In general, getting a mortgage on a nice flat in a desirable area is not an issue, although if you need to get a mortgage through one of the specialist lenders on flat high street lenders are not keen on, the rates can be much more expensive.

If you’re looking to buy a flats on the 3rd floor or higher in a block without a lift then your New Year’s resolution should to get fit.

Climbing flight after flight with a pram or shopping bags is no joke and often a factor not mentioned to unsuspecting buyers.

Flats with no lifts are always a difficult sale because unlike our European neighbours who we don’t like using the stairs. These flats are for super fit singletons who don’t need to carry moderate loads up 3 flights of stairs.

From a lending perspective these types of units may not have a great re-sale and surveyors are only to eager to point out the negatives to the lenders.

Buyers should avoid these if they’re looking to have something that will sell easily in the future.

Ground and first floors are the preferred choice for most buyers.

This has been the case for several years. Many major mortgage lenders will not lend on flats on the third or fourth floor of a building or higher without lift access. This is because lenders are always planning ahead, and with the UK's population ageing, accessible housing is becoming more desirable than ever. If lenders feel that a property will struggle to sell or maintain its value in future, they will avoid lending on it to protect themselves. This then creates a vicious cycle, as if a property will struggle to get a mortgage, that makes it even more difficult to sell and makes it even less valuable, and so on. I don't see this issue reversing, and instead 'walk-up' flat buildings may be forced to introduce lift access to avoid being totally unsellable. However, there are still some lenders who are willing to be flexible on this issue, so it's always worth exploring the market and getting an individual assessment.

There are lenders available who would consider lending on a flat with no lift, some mainstream lenders have no requirement for a lift at all.

The issue would be if the lenders appointed valuer would consider the property as marketable in the future, no lift in a flat may restrict the demographic of potential buyers, so although the lender may be ok in essence, the issue would be if the valuer feels the property may struggle to sell in the future and no lift would effect future marketability.

If this was the case, then the lender would decline to lend.