Joint Remortgage with older person

MWT

shreeuk said:

There’s one lender who can lend max on enhanced lifetime  basis (health issues)
this lender though good for me is declining due to commercial property next door. Lender’s criteria mentions what I mentioned above about my property not be a commercial and not be above a commercial property. Neither applies to me. They’re still declining. That’s what I also wanted to know if there was a way round it.

Sorry to hear about the health issues, but yes, that can make enough of a difference to the amount.

Regarding the neighbour, they all have a concern about adjacencies, doesn't even have to be right next door for it to cause a decline unfortunately.

They are looking for easy, uncomplicated sales so pure residential is their preferred target and anything in the retail/commercial sector right next door is going to be a problem, especially if it has any association with noise, parking problems etc.

What sort of business is it?

shreeuk

It’s an audio shop that’s been there for nearly 40 years. I’ve had two remortgages in the past without any issues. Property is being resold as a residential. They have their own demo room so noise and none of the businesses or the new block of flats are allowed to park on the street. Parking for residents only.Usually commercial properties in concern are takeaways and restaurants. I guess lenders don’t bend rules. 

MWT

shreeuk said:

Usually commercial properties in concern are takeaways and restaurants. I guess lenders don’t bend rules. 

The difference between a normal mortgage and a lifetime product is that with the normal ones, the lender wants the security of knowing the property is likely to be saleable if the worst comes to the worst, but they know that in the majority of cases they will never actually have to deal with a repossession, but with a lifetime product they know that there is a much higher chance that they will have to depend on a sale of the property in a short space of time to get their money back, so they are far more picky about what they will lend against.

If it is just the one shop there and it is converted to residential that may well remove the issue, if there are other stores adjacent to it then it may not.

shreeuk

Including next door 2 others

MWT

shreeuk said:

Including next door 2 others

Then I would certainly try to ascertain if the lender would be willing to proceed with just the nearest one converted to residential, before you make make this a part of your plan, as it seems like you are still going to be very close to retail.

shreeuk

Thank you MWT