Navigating Remortgages on Non-Standard Construction Homes: Lessons from a Southampton PRC Success

Understanding the Challenge of Non-Standard Construction Properties

Non-standard construction homes, including Precast Reinforced Concrete (PRC) types, often present financing challenges. Many mainstream lenders are cautious or unwilling to offer mortgages or remortgages on these properties due to perceived risks around structural integrity and resale value. This reluctance affects landlords who own such homes and need to refinance, consolidate debt, or fund improvements.

The Southampton Case: Breaking Through Barriers

Recently, a homeowner in Southampton successfully completed a £218,000 remortgage on a PRC property after being declined by three other lenders. Norton Home Loans approved the application by evaluating the borrower's circumstances and the property's valuation on a case-by-case basis instead of relying solely on standard criteria. This approach underscores the value of specialist lenders and brokers who understand the nuances of non-standard builds.

Why It Matters to Landlords

For landlords, securing finance on non-standard properties is critical for maintaining cash flow, managing debt, and investing in property upgrades that protect or enhance value. Without access to suitable remortgage options, landlords may face higher costs or be unable to fund necessary repairs or extensions.

Practical Implications and Steps for Landlords

• Identify Your Property's Construction Type: Confirm if your property is PRC or another non-standard type. This information can often be found in property deeds, surveys, or local authority records.

• Obtain Professional Valuations and Structural Reports: Lenders will require up-to-date valuations and may request detailed structural inspections to assess risk accurately. Maintaining valid, comprehensive reports is essential.

• Engage Specialist Brokers or Lenders Early: If you anticipate refinancing challenges, consult brokers experienced with non-standard properties. They can navigate lender criteria and present your case effectively.

• Manage Credit and Debt Carefully: Recent credit issues or arrears can further complicate mortgage approvals. Proactively addressing any outstanding debts improves your chances.

• Document Repairs and Improvements: Keep detailed records and receipts for any structural repairs or upgrades, as these support lender confidence and compliance.

• Communicate with Tenants: If remortgaging funds renovations or extensions, inform tenants promptly to manage expectations and comply with safety regulations.

Tailoring Your Approach to Your Landlord Profile

• Single-Unit Landlords: Ensure your valuation and reports are thorough; a single property is your entire asset base.

• HMO Operators: Multiple properties increase complexity; maintain impeccable records across your portfolio.

• Portfolio Landlords: Specialist lenders may consider portfolio strength; however, individual property assessments remain crucial.

• Accidental Landlords: Seek advice early, as non-standard property finance challenges can be unexpected.

Next Steps in the Coming Weeks

1. Verify your property’s construction classification.
2. Schedule a professional valuation and structural survey if outdated or missing.
3. Consult a mortgage broker specialising in non-standard builds.
4. Review your credit report and resolve any arrears.
5. Gather documentation on recent repairs and maintenance.
6. Plan tenant communications if works are planned.

How Rentals & Sales Can Support You

Our expert team offers portfolio reviews, compliance audits, and tailored pricing strategies that consider unique property challenges, including non-standard construction types. We can connect you with specialist brokers and provide ongoing guidance to optimise your financing and operations.

Compliance Disclaimer: This article provides general guidance and should not replace professional financial or legal advice. Landlords should consult qualified advisors for decisions specific to their circumstances.