Why your home might not be eligible for equity release – and what you can do about it
7 August 2019
The top turn-offs
Lender More 2 Life recently issued a list of factors that could cause your application to stall or even fail.1 So – just as you might spruce up your property before putting it on the market – it could be a good idea to consider the following and ask whether or not you can do anything about them.
Possible problem areas
- Commercial neighbours: If you property is adjacent to or adjoins a commercial property you may have problems say More 2 Life, and even if you’re not actually connected to the shop or factory, there could be problems too with noise – if you’re next to a pub, for instance. An unattractive setting could also be an issue; less likely if you’re next to the village post office than next to a spanking-new factory.
- Flooding: Has your property ever flooded? Has there been any flooding in the immediate area? Is your property in a flood zone? Not good news if it has happened in the last 5 years!
- Power problems: Are you situated near high-voltage power lines or pylons? Are you close to a sub-station? Any of these issues could make your property less acceptable to an equity-release lender.
- Former council house: If you’re in an ex-local-authority home, it may be harder to secure an over-55 loan – however as experts in the field we know which lenders find these properties acceptable.
- Asbestos: used from 1930 to 1970 as an insulating material, it can be hard to spot and its presence would be an issue.
- Single-skin walls: These won’t have cavities and are usually below 225mm in thickness. You’re most likely to find them in garage conversions and dormer extensions.
- Too much clutter: At last, here’s something everyone can do something about, so if you’re thinking about applying for equity release, what more incentive do you need to start sorting through your possessions and filling up those charity bags?
Forewarned is forearmed
As champions for equity release for the over 55s, we’ll ensure you understand everything that’s involved in the equity release process, its implications for you, your family and your home. We’ll also be sure to give you advance notice about anything that might stand in the way of being able to secure a deal for you – and that might include any of the issues mentioned above – and discuss with you ways to mitigate them to give you the best chance of securing the equity release loan, if that is the right financial solution for you.
You can’t change your property, but our equity release scheme experts can advise you on what you can do to make it as attractive as possible to lenders to help you realise your dreams.