Would all equity release companies refuse if house in in flood risk area

agnomen

My friend in her late 70's is looking for 20% equity on her cottage but has been told that it's not possible because:
1. The house is in a flood risk area.
2. Because there is commercial property nearby.
Can anyone explain the thinking behind this so we can see if there is a way round. I would have thought it was the saleable value that determines risk but maybe I'm being naive?

MWT

The key factors are how easy it is going to be to sell, and how safe the valuation is when looking forward what could be a few decades.

What is the nature of the commercial property and how close is it?

Has she ever experienced a flood at her property, and what does this site say about the flood risk: https://check-for-flooding.service.gov.uk/

Sadly there may not be a way around this...

Hoenir

agnomen said:

Can anyone explain the thinking behind this so we can see if there is a way round. I would have thought it was the saleable value that determines risk but maybe I'm being naive?

Until the debt is repaid. The capital tied up in the property continues to accrue interest. Compounding interest. In addition costly administration time is spent managing the situation. As money is finite. Lenders can be selective as to what business to underwrite. Not a question of doing as much business as possible. As you would say selling cans of baked beans or washing detergent in volume.