Quote:
Originally Posted by WillowTheWhisp
But that wouldn't necessarily mean they would lend for a specific property if it doesn't value up to what you committed to pay for it does it? It only relates to your credit worthiness and the amount they will lend against your salary etc.
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You can raise a mortgage on almost anything, though the lender will only loan you as much as they think it is worth in it's present state, in case it's defaulted on, and they need to get their money back by reselling it.
In this case it would be difficult to raise a mortgage on a property that is in a bad state of disrepair. They would almost certainly demand that a full structural survey is carried out, paid for by the person seeking the loan. Making it an extremely unattractive prospective purchase for most people, other than was said earlier by a property developer, who would probably pay cash, as do most of the buyers of properties at auctions.
It's a risk, but someone could strike lucky by putting in a cheeky bid, you never know.