Often, yes. Leasehold flats, maisonettes and leasehold houses can all be eligible for a lifetime mortgage. On a leasehold home the main thing lenders look at is the lease, which generally needs more than 75 years left on it. Shared ownership homes and non-standard properties need more checking, and every lender has its own criteria.
What lenders look for in any home
Whatever kind of home you have, a lifetime mortgage lender will generally want it to be:
- your main residence, in England, Scotland, Wales or Northern Ireland
- of standard construction, or accepted by the lender after a closer look
- worth at least £70,000
- wholly owned by you, rather than a share of it. Any existing mortgage must be repaid before or on completion, either from your own money or from the money released
The home is the lender's security, so it has to meet their criteria. Following your application, the lender arranges an independent valuation of your property.
Leasehold flats and maisonettes
Flats and maisonettes are eligible, including conversions. What matters most is the lease.
With a leasehold home, you own the property for a fixed period, set out in the lease. Most flats are leasehold, and houses can be leasehold too. For a lifetime mortgage, the lease generally needs more than 75 years remaining. Check how long is left early, rather than late, because it can change what is possible.
If your lease is getting short. You can ask the landlord to extend your lease at any time. In England and Wales, GOV.UK notes that once there are 80 years or less remaining, the cost of extending it increases significantly. The Leasehold Advisory Service has guidance on this. Lease extensions are legal work, so speak to a solicitor about your own lease.
Leasehold houses
Leasehold houses are eligible on the same basis as leasehold flats. The lease length is the thing to check first.
Shared ownership homes
With shared ownership, you buy a share of the home and pay rent to a landlord on the rest. You can buy more shares later, which is known as staircasing.
Lifetime mortgage lenders generally need you to own all of your home. So while you own only a share, a lifetime mortgage is not usually available. If you have since bought the remaining share and now own all of it, the home can be looked at like any other, subject to the lender's criteria, including the lease.
If you are part way through, talk to us before you assume either way.
Non-standard and unusual homes
Non-standard construction is not an automatic no. Non-standard properties are referred to a lender for a decision rather than declined out of hand, and lenders take different views. That is where being whole of market earns its keep.
The homes that need checking in advance are:
- non-standard construction
- retirement or age-restricted housing
- properties with large amounts of land
- annexes
- properties held in trust
- anything else unusual about the home
Ex-local authority housing is not a bar in itself, though individual lenders have their own criteria.
Does the type of home change how much you can release?
It can. A lifetime mortgage is worked out mainly from your age and your home's value. The actual amount also depends on the lender's criteria, your health, your property type and condition, and your postcode.
Our lifetime mortgage calculator gives an indicative figure based on your age and property value. For what else decides it, read how much equity can I release?
How to avoid surprises
Mention anything unusual about your home at the start. A short lease, an annexe, an unusual build or a retirement development all need checking with the lender, and knowing early avoids surprises at valuation. Our page on how long equity release takes explains where in the process that check happens.
Have your lease details to hand if your home is leasehold, especially the number of years left.
If you are thinking of moving to a flat or a different type of home later, the new property will need to meet the lender's criteria too. See can you move house with equity release?
Equity release on flats and leasehold homes: common questions
Can I get equity release on a leasehold flat?
Yes, in many cases. Leasehold flats and maisonettes are eligible for a lifetime mortgage, but the lease generally needs more than 75 years remaining, and the flat has to meet the lender's other criteria.
How many years do I need left on my lease?
Generally more than 75 years. Lenders set their own criteria, so check your lease early and tell us what is left on it.
Can I get equity release on a shared ownership property?
Not usually while you own only a share, because lenders generally need you to own all of your home. If you have bought the remaining share and own the whole property, it can be considered subject to the lender's criteria.
Is a non-standard construction home a no?
No, not automatically. Non-standard properties are referred to a lender for a decision rather than declined out of hand, and different lenders take different views.
Can I get equity release on a retirement flat?
Retirement and age-restricted housing needs checking with the lender in advance. It is not something to assume either way, so mention it at the start.
Not sure how any of this applies to your own circumstances? Craig is happy to talk it through, free and with no obligation.
Talk it through with Craig
If your home is leasehold, shared ownership or a little out of the ordinary, an initial conversation can help pin down what needs checking with a lender. The first conversation is free.
Book a call with Craig or call 0113 403 5584.
