What 'cash buyers only' means

The usual reasons

• A short lease: many lenders will not lend once a lease falls below a certain length, often around 70 to 80 years, and the limit varies by lender.
• Non-standard construction: concrete, steel-framed, timber-framed or prefabricated homes that some lenders refuse.
• No working kitchen or bathroom, which lenders treat as not habitable.
• Structural movement or subsidence.
• A flat above a shop or restaurant, or in a block with unresolved cladding or fire-safety questions.
• A problem with the title, such as a missing right of access or a flying freehold.
• A sitting tenant.
• Invasive plants such as Japanese knotweed close to the building.

Does it always mean cash?

Not always. It means standard mortgages are unlikely. Some specialist lenders will consider homes that high-street lenders turn down, and some buyers use short-term bridging finance, fix the problem and then move to an ordinary mortgage. Both cost more than a normal mortgage. Speak to an FCA-authorised broker before you rely on either.

Is it a bargain?

• The price is lower because fewer people can buy. Whether that is a bargain depends on what it costs to put the problem right, and whether it can be put right at all.
• A short lease can often be extended, at a price a specialist valuer can estimate.
• A missing kitchen is cheap to fix.
• Structural problems and some construction types may never become mortgageable, which also limits who you can sell to later.

Before you offer

• Ask the agent exactly why it is cash only, and get the answer in writing.
• Have a chartered surveyor inspect it and cost the fix.
• Ask your solicitor to check the lease and the title early.
• Plan how you will sell or refinance afterwards: the next buyer faces the same question.