Equity release - no management company

Hello, I have a question around equity release.  My mother has an interest free mortgage which is due to come up in 2026.  We have been looking for an equity release solution which will pay off the capital and leave her with cash in the bank. 

We started the process by engaging with an Independent financial advisor, who told us everything was fine.  However it has come to light that the lenders identified will not lend based on the fact that there isn’t a management company in place nor block building insurance. 

My mother lives in a ground floor flat and a management company has never been in place.  The deeds to the property state this fact.  She also has her own building insurance for the property.  

Is there any lenders in the market who will take on this obligation without the two factors being in place?  

Comments

  • DullGreyGuy
    DullGreyGuy Posts: 17,258 Forumite
    10,000 Posts Second Anniversary Name Dropper
    She in Scotland or another part of the UK?
    If not scotland presumably this is a leasehold?
    What does the lease say about building insurance?
    Who's the freeholder?
  • The property is in Scotland and is freehold. There is no lease on the building.  According to the deeds it’s a best endeavours to sort out. 
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