Equity release for timber frame house

Sa_Griff · 30 September 2017 at 10:14AM

My Dad has lived in his house for 44 years. It was originally a timber frame construction but has been extended and only one third of the house is timber framed. His mortgage ends next February, as he is 73 at which point the remainder owing must be paid. The original lender has handed his account to Ascenden to manage, which makes extending the mortgage impossible. He has applied for equity release through Age Partnership. They sent a valuer and the survey results highlighted the timber frame. Despite this, the house was valued at 3 times what my Dad was hoping to release. However, he has been advised that no-one will lend to him as the house is timber framed. This is heartbreaking but I wondered if there was any advice regarding 2 things...
1. Does anyone know of equity release lenders who deal with non-standard construction?
2. Does underpinning a timber framed house change the construction type? ie. If my Dad got the house underpinned, would it still be classed as timber framed?
3. Has anyone successfully converted a Platform Loans mortgage to a lifetime mortgage?

My Dad is struggling to cope with the idea of selling his home, he still works and his credit score is 999, it seems crazy that his options are so few! Thank you in advance for any responses.

Baldieman · 2 October 2017 at 9:55AM

Hi,
Equity Release lenders are a bit fussier than standard mortgage lenders when it comes to property types and alike and it is frustrating for brokers when trying to place cases like yours. Where a property has a timber frame (granted it's about 33%) it depends when it was built, generally before 1960 you will have an issue unless it is historic i.e. been stood for a couple of hundred years. My question would be have they tried more than one lender or given up after one try? Some are more flexible than others depending on where the property is, the local market, how much it is worth etc.
Hope this helps a bit.

f1archer · 4 April 2018 at 5:02PM

I have tried numerous companies, Key Retirement, Legal & General, Saga etc etc, and been refused equity release on my bungalow because it is a timber frame and built in 1932. It seems from all the companies that I spoke to there are only about 10-12 lenders that they go to to find out if they can raise money for equity release. I was told that because my house was pre-1965 it was a definite no-go with any of the companies involved in equity release. I did tell all lenders that I had no problem obtaining a mortgage when I purchased my bungalow in 2006, and that the property had been completely renovated in 2002-03, but I'm afraid it didn't make any difference. It was a bit fat zilch! The thing that annoys me most is that in all the bumph that they send out there is no mention that the property might not be suitable for equity release. I also have a friend who has that foam stuff sprayed on the inside of her roof, and the surveyor (yes, one actually came out to view her property) said that she would have to re-roof the house before equity release would be granted.