Even though only 8% of capital release cases have been rejected, lender more2life has tracked down the reasons why cases are rejected to help advisors better manage A lifetime mortgage allows you to free up some of your home equity to finance things like home improvements or large expenses. But could your mortgage application be denied? Yes, you can. According to More2Life, homeowners who were turned away for capital release due to clutter in their properties became more common last year. The lender ranked the top 10 reasons for refusing an application.
They were flat roofs, proximity to commercial property, non-standard construction, flood risk, single-layer construction, former local authority, clutter inside the house, asbestos, proximity to electricity and spray foam under the roof. Yes, you may be denied the release of capital. This is because there are key criteria that must be met in order to make your application suitable and attractive to a potential lender. For example, if there is evidence of substantial disorder in your home, or if you clearly need essential repairs, lenders could deny your request or insist that repairs be made before considering your request for capital release.
Your equity release loan will need to be repaid when the last borrower dies or transitions to long-term care. When seeking advice on capital release, always ensure that the company is licensed and regulated by the financial conduct authority, especially if you are paying for your advice. The youngest homeowner must be at least 55 years old to qualify for a lifetime mortgage, the most popular type of equity release plan. We also need your email address to send your results and your phone number so that your local expert advisor can talk to you more about the money you want to free up.
To qualify for capital release, you must meet four very simple eligibility criteria. You should consider the reasons why a property may be suitable when applying for equity release, but also if you are buying a home anyway, watch out for reasons that may detract from your ability later to sell your home or use equity release. To determine how much capital you can free up, your provider will ask a surveyor to determine the market value of your home. Lenders apply different criteria, but there are some equity release lenders who will consider it, subject to the partner under the age of 55 being removed from the title deeds.
Key Equity Release is a trade name of Key Retirement Solutions Limited that is authorized and regulated by the Financial Conduct Authority. Usually, a lifetime mortgage is the most popular option of equity release plan for those in old age. In this first step, you typically pay the application fee, valuation fee and commissions for capital release advice. If you want to speed up the process of releasing capital, it is even more necessary to seek independent legal advice.
To contract a capital release plan from a capital release provider, you must be a homeowner, over a certain age. Therefore, we recommend that you talk to a stock issuance advisor beforehand, especially if you think you will want to sell in the future.