In most cases it would be highly challenging, if not impossible, to secure a mortgage on a property that lacks basic utilities such as a water supply.
Here’s why:
- Lender requirements – mortgage lenders typically have strict requirements regarding the condition and habitability of the property. A reliable water supply is considered essential for the property to be considered habitable. Lenders want to ensure that the property meets certain standards and is suitable for occupancy
- Valuation and survey – as part of the mortgage application process, the lender will conduct a valuation and survey of the property. If the property lacks a water supply, it is likely to be flagged during this process, and the lender may refuse to lend on the property due to concerns about its habitability and potential health and safety issues
- Legal considerations – even if you were able to find a lender willing to finance a property without a water supply, there may be legal implications and restrictions that prevent the property from being sold or occupied without access to basic utilities. Local regulations and building codes often require properties to have access to essential services like water
- Resale value and marketability – properties without a water supply are likely to have significantly reduced resale value and marketability. This can pose risks for both the borrower and the lender, as it may be challenging to sell the property in the future or recoup the investment if necessary
- Health and safety concerns – lack of access to clean water can pose serious health and safety risks for occupants of the property. Mortgage lenders have a responsibility to ensure that the properties they finance meet certain health and safety standards to protect the interests of both the borrower and the lender
No Water Supply Due to Construction
It may be possible to secure a mortgage on a property with no water supply if the property is under construction and the water supply will be connected upon completion of the build.
Otherwise, this is likely to prove more tricky. If there’s no supply and no way to connect it, then it’s unlikely that a lender will be overly keen on advancing any monies on it.
Private Water Supply
A private water supply is one which is not provided by a water company. For properties that do have a private water supply, Defra has put together a guide on buying a house with a private water supply, which you can read.
Getting a Mortgage on a Property Without Water Supply Summary
In summary, while it may technically be possible to find a lender willing to finance a property without a water supply, it is highly unlikely due to the associated risks, legal considerations, and marketability issues. It’s essential to address any issues with the property’s utilities before attempting to secure a mortgage to ensure that the property meets lender requirements and is suitable for occupancy.
If you’d like to learn more about your options call us on 020 4519 5101.
