Posted on 7 July 2012 by Joanna
I need some advise on buying a property with an over 55yrs age restriction on the resident. Myself and my husband wish to buy this property and my grandparent will reside in it, but we would need a minimal mortgage of approx 50% LTV, on a property worth c£70000. Can you help please?
These retirement properties are very difficult to place when it comes to getting a mortgage and the majority are bought for cash when people downsize. The problem for lenders is the age restriction means they have less chance of achieving a quick sale if the property is repossessed.
However, as you are putting down 50% of the property value I think there would be a good chance of finding a lender willing to take the risk and lend you the money. They will want to be sure that the restriction only applies to occupancy, not ownership and that you have sufficient income to be able to support this mortgage along with any existing credit commitments that you already have.
Before going ahead you may wish to consider what will happen when you come to sell the property, it is very likely any prospective buyers are going to have the same difficulty raising a mortgage as you.
I do believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right solution.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.