Equity release (posted in wrong section)

danco

I posted an item about equity release in the wrong topic. It should obviously have been here, but by mistake I put it into the House Buying, Renting and Selling section.

If someone can move it into this topic I would be grateful (I don't know how to do it myself). Otherwise, please take this post as a link to my main post.

MWT

Here is the original post for anyone trying to find it: https://forums.moneysavingexpert.com/discussion/6355992/equity-release

You've already had some good comments over there and unfortunately as a specialized retirement flat with associated services (restaurant) it does present some significant problems.

Does the advisor you are using access the whole of the market, or are they representing a limited portfolio of lenders?

Also I think the restaurant element may be a bit of a red herring, the surveyors comment you reported was

"Future saleability is poor and will be limited due to the property type; Commercial premises on ground floor."

Just the first part of that comment would be enough to rule out most lenders, the commercial element just makes it stronger. Challenging that part does not ensure an acceptance.

The lenders are looking for an easy sale and there are often restrictions and limitations in the lease which they view as negative factors and their reaction is to not lend in the first-place rather than just reduce the value. (I assume your flat is leasehold)?)

You mentioned that RIO might not be possible due to your age (85) and although it might restrict your choices it isn't a complete bar to getting a loan, but, RIO products are subject to affordability checking so you would have to have a secure source of income that meets the lenders requirements to cover the interest payments...