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For residential properties the property can be pretty run down and still suitable for a mortgage, the minimum being liveable, so usable kitchen, bathroom, heating, working services.
It’s possible you can get a mortgage offer with a full retention of funds until certain aspects of the property are completed to the lender’s satisfaction. However getting this sorted within an auction timeframe is challenging, and many lenders don’t bother with retentions any more.
You could ask the surveyor to comment on essential repairs and then roughly price it up yourself.
Short term Bridging loans and development finances are often used for this purpose as they will lend on otherwise unmortgageable properties, with a rapid remortgage to standard mortgage as soon as able.
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Acliff
tbc
If you were to buy a house deemed unmortgageable at auction, would a survey tell you the minimum amount of work you'd need to do before it could be mortgaged?
There's a place that we could potentially afford to buy outright, but not do much work on without borrowing some funds.
Would it be possible to get an agreement from a lender that they would lend to us conditional on us, for example, fitting a kitchen or bathroom, which we could then do as part of a large renovation, take out a mortgage, and finance with the mortgage?