Equity Release

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Posted on 21 September 2011


My mum has a first floor freehold flat in a block of 12 freehold flats. Is it possible to get an equity release mortgage on a freehold flat? The flat is worth about £250k and she would want to borrow £50k. She is 77 years old.

Paul

Whilst your Mother would normally be able to release £50,000 on a property worth £250,000 the problem would be the freehold flat.  Unless the property is in Scotland equity release providers do not like freehold flats and I can not guarantee any application would be successful.

I would like you to call one of our independent mortgage brokers on 0844 346 3672 with the address and whether your mother owns the buildings freehold or just has a single freehold flat, within a block of freehold flats?  On receipt of this information we can e mail the providers to get their views.

Peter


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Our charges are based on two considerations: the loan amount and the complexity of your individual circumstances. We will provide you with a free initial consultation and we will always explain exactly what you will be charged before you choose to  proceed with an application. As we offer a bespoke service our charges can vary. Our minimum fee is £495, (of which a non-refundable £150 is payable when you make a formal mortgage application). The average fee paid by our clients over the last year was 0.24% of their loan value. (For example, if your loan amount is £300,000 our average fee would be £720). If your circumstances are more complex we may charge a higher fee. Our maximum fee is 1.5% of the loan value. (For example, if your loan amount is £300,000, our maximum fee will be £4,500).

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