In Ask the Expert, Largemortgageloans.com's Paul Welch answers on what lenders will lend against a retirement property.
Q: I work for a retirement development firm and one of our clients has asked if there are any mortgage brokers who will give them a mortgage against a retirement property, as the lender they have at present will not transfer?
Paul Welch, managing director of Largemortgageloans.com
A: The concern from high street lenders is that retirement properties are in a limited market and will only be typically available to the over 55s.
Therefore, they cannot be sold on the open market.
Private banks may consider taking security at a low loan to value e.g. 50%.
However, these will only be on a short-term mortgage basis, such as five years, as these are ultimately retirement properties and have the aforementioned limited sale market.
