Equity release / Home reversion plans

Ineedaservant

My neighbour needs to raise money to pay off her mortgage as she can no longer afford the payments. 

She lives in a circa 300 year old 4 bed cottage, semi-detached, village location, no garden but small/medium back yard, or off road parking.  She is currently at the stage of house on market for £425,000 - she needs £170,000 to clear mortgage, but doesn't want to move.

She has, therefore, been trying to obtain equity release (it could be either a lifetime mortgage or a home reversion plan, I didn't realise the difference until I looked on this site), but has been turned down twice.  Once was because the slate roof has been covered in tarmac (a common mistake made in the 1960's in this area) and the second because she is right next to the village hall.  The first had no objection to the hall, the second had no objection to the roof !

Has anyone any practical advice I can pass on to her, eg suggestions of companies she might try, your own experiences etc.  Many thanks

MWT

With those sort of numbers she is hopefully in her later 60's to allow the amount she needs to work at that valuation with just a Lifetime Mortgage product rather than 'Home Reversion' ...

Also hopefully she is using an advisor that can access the whole of the market and isn't just going to the High St. lenders?

Not going to lie though, this may not be an easy one to place, the lenders look for property that will eventually be an easy sale and easy to mortgage for the buyer.

So adjacencies are important, but the usual concern is retail or commercial premises, but an active village hall could be a concern for some.

The roof may be the bigger issue though, any type of non-traditional construction and especially something which makes it difficult to see the actual state of the roof can be a big concern.

Has her advisor given her any hope that they have a 3rd lender lined up? ... and do you know which lenders have turned her down already?

Ineedaservant

Thank you for your reply.  Yes, in her later 60's, using an advisor but I don't know how they decide the product lenders.  She has had one viewing, who have come back for a second viewing, within 2 days of putting on market.  Not sure about 3rd lender, previous lenders unknown to me.

MWT

Ineedaservant said:

Thank you for your reply.  Yes, in her later 60's, using an advisor but I don't know how they decide the product lenders.  She has had one viewing, who have come back for a second viewing, within 2 days of putting on market.  Not sure about 3rd lender, previous lenders unknown to me.

Well, it sounds like she has identified two points that lenders are going to be sensitive to with her property, the only thing I can suggest given the lack of information on her current advisor and further progress, is to try talking to a different advisor, but make those points clear upfront rather than waiting for the valuation.

I would suggest somewhere that can access a broad range of lenders and offers free advice, so she doesn't end up paying more than she has to... 'StepChange Financial Solutions' is the one I usually mention.

Linton

You neighbour needs to work with her advisor.  Many well known high street lenders dont do ER and the main ER lenders are not the normal high street names.  It's a niche area and I believe not best suited to diy.  Even if she does find a company willing to lend they will insist she uses an advisor either of her choice or one provided by themselves. 

As MWT suggests if her current advisor does not come up with the goods find another one.  She should ensure that the chosen advisor is a suitably qualified ER specialist.