Posted on 1 April 2011 by Maureen Sanders
My husband and I own his mother's flat in Glasgow. It is a McCarthy & Stone retirement living property. We would like to raise some money from it to use as a deposit for a larger house for ourselves, can you recommend any scheme. At present she pays us rent for the flat.
I think that you are going to find yourselves a limited to small choice of Lenders. McCarthy & Stone properties usually have restrictive covenants about who can occupy them and this limits their saleability. Lenders are very wary of any restrictions because if they take possession they need to be able to sell a property for the best price as soon as possible.
If you have an existing mortgage on the property you will normally find the cheapest way to raise additional funds is to apply to them for a Further Advance. There will normally be an administration fee payable and you might also need to pay for a new valuation. Some lenders will allow you to borrow on the same rate as your existing mortgage, whereas others will allow you take a product from their current range.
If you do not have a mortgage at present I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the consultant the date and title of your question. They will be able to look at your situation and advise you accordingly.
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.