Posted on 15 June 2011 by Alan McKenzie
I own a small studio flat in London which I am considering selling. However, several estate agents have advised me that it won't sell as it is too small to get a mortgage on as mortgage providers have toughened up lending rules recently. Is there a current minimum studio flat size for a mortgage & are there any lenders that will provide mortgages for smaller studio flats?
The usual minimum for a studio flat to be acceptable for a mortgage is 30 sq metres. There are a couple of lenders who do not state a minimum size for studio flats because their suitability as security depends not only on their size and location, but how easy they will be to sell if the lender has to take possession. If your local estate agents are telling you that it won't sell then this is also likely to put lenders off.
However not all buyers will require a mortgage, either having cash in the bank or raising it on their main residence. In this instance you just need to find the right buyer for your property and if the local estate agents can't do this then look towards one of the larger up-market firms who will probably have clients on their books looking for a studio flat in the right part of London at the right price.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.