If you’re looking to release equity but aren’t sure whether the type of home you live in fits the criteria, we’ve compiled some useful information.
Equity Release is not available on a park home. This is because Equity Release products are applicable to homes that either freehold or leasehold, neither of which apply to park homes.
They are simply seen as a depreciating asset and there is nothing to stop them disappearing on the back of a lorry overnight.
No, Equity Release is not available on rental properties. Equity Release products are designed to be used by homeowners who own their house outright or have a mortgage with sufficient equity built up in it. However, if you are the owner of a buy-to-let property, you may be able to use a separate product called a buy-to-let mortgage to release equity from your rental property.
Yes, you must live in a property in order to get Equity Release. Equity Release products are designed for homeowners who wish to access the cash they have built up in their home without needing to move or sell it. Therefore, you must be living in the property that you would like to use Equity Release on.
Yes, but it is seen as more of a risk by most lenders so you may have to pay a higher interest rate. Equity Release products are available for properties that have been built using non-standard construction methods, such as timber framed or modular homes. However, lenders tend to assess these types of properties more carefully than traditional brick and mortar homes as they can be considered more difficult to sell.
Yes, Equity Release products are available on properties held in trust. However, it is important to note that if you are the beneficiary of a property held in trust and wish to release equity through an Equity Release product, then you must gain permission from all trustees involved. This process can take longer than with a regular mortgage application and will require additional paperwork from each trustee involved.
Yes, it is possible to get Equity Release on a shared ownership property. However, the amount of equity that can be released may be limited depending on the terms of the shared ownership agreement. It is important to make sure that you understand all the implications of any Equity Release product before taking it out.
Yes, it is possible to get Equity Release on a prefabricated home. However, the amount of equity that can be released may vary depending on the specific prefabricated home and its location. It is important to contact a qualified Equity Release adviser to discuss your options.
