Non-standard concrete properties are often more expensive to finance because they present a higher level of risk to lenders. There are several reasons for this:
Specialist assessments: These properties often require more thorough and specialised assessments to evaluate their condition and the quality of the construction, which can add to the cost.
Insurance costs: Non-standard properties can be more expensive to insure due to perceived increased risks, and these costs can affect the affordability of the mortgage product.
Resale concerns: There is often a smaller market for non-standard properties, which can make them harder to sell. Lenders may worry about their ability to recoup the loan amount if foreclosure is necessary.
Limited lender options: Not all lenders will offer mortgages on non-standard properties, leading to less competition and higher interest rates for the borrower.
Remedial work: If the property requires repair work to address defects common in some types of concrete construction, this can also increase the cost of the mortgage.
The higher costs reflect the additional work lenders and insurers must undertake to understand the property's risk profile and the potentially limited liquidity of these assets in the mortgage market.