Factors that can affect how much equity release companies might lend you

Common equity release restrictions 

All equity release companies have their own criteria for properties that they are prepared to lend money against, but some of the common restrictions that may make it harder for you to find a lender or may restrict the amount of equity you can release from your home include: 

• Owning a flat, rather than a house
• Service charges
• Partial flat roof 
• Commercial venues nearby 
• Some insulation products 
• Flood-risk warnings
• Ex-local authority flats 
• Built on contaminated land 
• Poor repair
• Rented out
• Owned under a shared equity scheme 
• Non-standard construction, such as wood or cob 

Equity release restrictions that vary by lender 

While there are some common restrictions that make most equity release companies think twice about lending money, there are other things that trigger different warning bells for different lenders. Some of those known to be applied by some lenders as of August 2019 include: 

• Thin walls: Restrictions include properties with single-skin brickwork where it makes up more than a fifth of the surface area of external walls 
• Asbestos: The percentage of roof slates on a property that contains asbestos can influence some lenders
• Green energy:Houses with a solar farm on their land have been turned down
• Listed buildings: Especially those that are Grade 1 or 2
• Timber-framed buildings: Some lenders have rejected applications for timber-framed properties built between 1920 and 1965 – while others have said that they will consider timber-framed structures as long as they were built before 1960
• Knotty problems: Japanese Knotweed can prompt some lenders to say no
• Large gardens: Some lenders give extra scrutiny to equity release applications for properties with more than five acres of land, while other rule out any property with more than 10 acres
• High rise: Flats in blocks more than four storeys high that don’t have a lift may not get a favourable reception from all lenders.

Increasing the chances of success for your equity release application 

While you may not be able to change if your house is a former local authority property or whether there is a Chinese takeaway next door, there are things you can do to increase the chance of success for your equity release application. 

“Lenders want to know they are likely to get their money back,” explains Jan Johnson, director of 55+ Equity Release. ​“One of the things they will look for is that your home is in good repair. Simply having a lot of clutter can make the difference between successfully releasing equity from your home and having your application turned down, as the valuer may find it hard to assess if your home is in good structural repair. So just have a good tidy can boost your chances of success – instead of seeing it as a chore, use it as a chance to declutter and enjoy your home more!” 

Expert advice is also invaluable. ​“The different restrictions imposed by competing equity release companies shows the importance of having an expert on your side who can help you find an equity release product that matches your needs and your property,” comments Jan. ​“Someone who really knows the market, and who is independent so can access most of the products on the market, will have the greatest chance of being able to find a product which matches your criteria.” 

Sometimes there is only one lender who will be prepared to lend against a particular property. If your home has factors that makes lenders nervous, our trusted equity release experts will leave no stone unturned in their quest to find an equity release company that will consider your application (as long as they think equity release is an appropriate solution for your circumstances).