Timber Frame Equity Release

Strumpit13

Hi all, i hope someone can help. I am thinking of purchasing a property in Scotland. On the home report it says the property is fit for mortgage purposes. On further reading it says the walls are 'load bearing timber frame with painted render externally'. The property was built in 2015 and is in excellent condition. i intend to buy or cash and take equity release in the near future. Is this possible on a property like this?

Thanks in advance.

MWT

Strumpit13 said:

On further reading it says the walls are 'load bearing timber frame with painted render externally'.

When was it built?

The advice generally is that it needs an outer skin of brick/block, so I'd be doubtful about equity release, but if it is an older (pre-1920 construction) then it might be possible...

Strumpit13

It was built in 2015, Scotland

MWT

I think it is going to be difficult to get equity release on this property, so I'd be inclined to approach one of the equity release advisors that provides advice without a fee (StepChange for example) and talk to them about using an equity release product during the purchase of the property, rather than just doing a cash purchase then looking into equity release so you do not end up owning the property and then failing to get equity release.

Another important factor will be any commercial adjacencies or things like electricity pylons nearby. In short the lenders are looking for easy to sell properties without any complexities.

Strumpit13

Good advice, thanks. I am trying to contact some companies but my phone is not taking or recieving calls, fab. It looks like the whole 3 network is down.

Strumpit13

I have had an update. The house might not be fit for equity release (waiting for specialist equiy companies to get back to me) but after speaking to the Scottish Building Society they have said i could get an interest only retirement mortgage, i would have to wait a couple of years but its an option.

MWT

Strumpit13 said:

... but after speaking to the Scottish Building Society they have said i could get an interest only retirement mortgage, i would have to wait a couple of years but its an option.

RIO products can be a good option if you have the guaranteed income in retirement to pass the affordability test.

If you are buying on your own then it is just your income that matters, if there are two of you then the affordability is tested on the basis that either partner surviving on their own needs to pass the test.

Strumpit13

Yes, thats what i was told, its just me and the amount i would need is quite small. I had thought my options were dead but this has given me hope. Thanks for the advice.