Equity release on a non-standard construction property?

lottagelady

Please, has anyone here managed to get anyone to release equity on a non-standard construction property?

It's a very long story, but all of my family and I have ended up living together for various reasons - there are 6 of us living in a 3 bed semi, 4 adults and 2 pre-school girls, my granddaughters, and as you can imagine, it is CHAOS!

The house could easily work for us all, but would need money spent on it to do that, but not realising before I bought the property (I knew it wasn't mortgageable, and bought it cash so am mortgage free), I had no idea that they wouldn't release equity on it either! When I bought it, I had sold and there were literally only 2 houses on the market that I could afford in affluent Wiltshire, and this one was bigger, and had a downstairs loo, and as I am disabled, that was important to me, as was the potential to create a downstairs bathroom. 

I am living in the conservatory - can you imagine what that is like in this weather - I suffer from a couple of diseases that have damaged my ability to create fluid in my body and one that cannot control my sweating, so I am struggling big time with dehydration no matter how much I drink. I feel ill .... need a roof .... my eldest daughter is living in a box room with a stair box in it, no room for anything but a bed. I wash in the kitchen with no privacy and am trying for a DFG to help me with a bathroom but have been told not to hold my breath basically.

Just need to find someone who will lend on it?

kingstreet

We need to know the construction method/material, builder and possibly even the year of construction.

Equity release is simply a kind of mortgage so issues with the security will apply equally across the board. Some ER lenders will accept some issues where others won't.

MWT

lottagelady said:

It's a very long story, but all of my family and I have ended up living together for various reasons - there are 6 of us living in a 3 bed semi, 4 adults and 2 pre-school girls, my granddaughters, and as you can imagine, it is CHAOS!

lottagelady said:

I am living in the conservatory - can you imagine what that is like in this weather

Even if you can get past the construction issue, the degree of over-crowding and unconventional use of space may be a problem as well.

Part of the equity release process will require a valuation and inspection to confirm that the property is currently well maintained and without evidence of clutter/chaos etc.

The lenders use this as a measure of how well the property is likely to be kept in the future and how easy it will be to sell in the future.

Also although you don't clearly say this, can we assume that the property is in your name only and you are over 55?

All the others over 18 who are resident there will have to waive their right to occupy and upon your eventual demise or earlier entry into long-term care they would have to promptly vacate the property.

Sorry this isn't a particularly helpful comment, but you do need to recognise that construction is not the only problem you have to deal with...

lottagelady

Thanks all ..... the reason we are in chaos is that there is no storage in the place and the kitchen hasn't been planned well, the point of the ER is to rectify this amongst other things .... 

The property is a Reema Hollow Panel which has been very well insulated and has been brick wrapped with a PRC Certificate. C1960's. Yes I am over 55, disabled and unable to work, and the property is in my name only. Yes they know about paying it back, they will have a year in which to do that generally and in any case will want to buy it back.

MWT

lottagelady said:

The property is a Reema Hollow Panel which has been very well insulated and has been brick wrapped with a PRC Certificate.

Thanks for the additional details, hopefully @kingstreet or one of the other brokers will comment, but if this was just a brick wrap rather than a full wall and joist replacement then I do not believe it is going to be possible to get equity release or any other type of mortgage on the property unfortunately

Have you worked out how much you need to borrow to make the improvements you need?

Perhaps there is another way to achieve this given the number of adults you have in the property, other than yourself, and their potential for generating income?