Increase in enquiries from landlords trying to buy studio flats

by Aaron Strutt

Oct 15 2014

Trinity has been receiving an unusually high amount of enquiries from clients trying to buy studio flats in London and the south-east. The rise in house prices over the last few years has increased the popularity of studio flats and more property investors are keen to add them to their portfolios.

There are a host of banks and building societies offering both residential and buy-to-let mortgages for studio flats, although it can be a challenging process to secure finance on such small homes.

Aaron Strutt, product manager at Trinity Financial, says: "Most of the lenders have set a 30 square meter minimum size limit, although there are a couple of exceptions to this rule. A large part of the decision to offer a mortgage on the property is based on the valuer's opinion and if they approve of the property.

"Lenders tend to prefer studio flats in prime locations but, if the valuer says it is not suitable for mortgage purposes, a cash purchase maybe the best option."