Equity Release  


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Hi,

      As we are thinking of buying a BISF property with cash from house sale.

      If in our retirement we have to raise capital, do the lenders accept this type

     of property?

     Neil

 
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Hello Neil, I must admit that this is not a question that I have come across before in relation to B.I.S.F Houses.

I cannot see any reason why they would not be suitable as collateral for equity release purposes providing that the base lender has a lending criteria that includes properties of Non-Traditional construction.

I shall try to do some digging over the next few days for you but in the meantime, it would be good to hear from any of our readers who have experience in this area.

Regards

Marc

I've found a link that may assist you neil.

There is a particular section on the page that relates to Non Standard Construction Equity release/

Here's a short excerpt:

2. Property Criteria – the minimum property value any lender will accept is £70,000. There theoretically is no upper property valuation, however certain lenders will impose maximum values to reduce their exposure & risk. You tend to find the bigger corporates such as Aviva, Legal & General and LV= will consider properties upwards of £1 million and in some cases Equity Release Supermarket have central London apartments accepted which have been valued in excess of £10 million. Hence, it is always better to check than to assume. These are not residential mortgages and the mechanics of lifetime mortgages are clearly different to their residential counterparts, hence they need to be considered independently.

 

Property type is equally important in ascertaining eligibility.

Properties of non-standard construction should always be run by a lenders underwriter, providing them with as much information as possible. Therefore, construction types such as concrete block, timber frame, ex-council flats, high rise apartment blocks, listed buildings & properties with short term leases MUST always be brought to the attention of the Equity Release Supermarket adviser who will check with the lender before submitting a full application.

 

The condition of the property is something all lenders take seriously. Someone who neglects the upkeep of their property now, is maybe someone who could affect the future security for the lender. We are seeing more evidence of clutter these days and if this is evident in a surveyor’s report, then a lender will not even place a valuation on the property & decline.

equityreleasesupermarket.com

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Thank you for the info.

Your help is very much appreciated.

Neil

 
  
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