All timber new builds and lifetime mortgages

[davidc]

Not sure if this is a question lies outside the scope of the forum but here goes.

 

Has anybody any experience of applying or obtaining a lifetime mortgage or equity release type arrangement on a new self build constructed entirely from timber (i.e. with no masonry leaf) ?

 

I had heard that all-timber construction has traditionally not been an acceptable form of security for providers of this type of product but wondered if that may be less true where the property is built to contemporary building regs and warranty standards ?

[lizzie]

Not done it ourselves but yes do know of one where it was done.  Limited lenders who will do it and think a build warranty will be required.

[Ralph]

No experience personally but I've read of a number of people refused equity release on timber framed buildings with no masonry and this includes high end German Haf Haus, not just the older builds.

 

We did have a building society pull an offer for self build mortgage when we went to 100% cladding from about 80%.

[Thedreamer]

It's hard enough to get a self build mortgage with out the extra complications.

 

Our build incorporates render and timber cladding.

[MikeSharp01]

I am sure that most of the core lenders will support mortgages, most- although not by all means all, are quite happy with timber construction, but specialist equity release lenders are a different bunch as they have a different set of risk appetites. I suspect that the age / newness of the build might be a factor (newer houses easier). There must be someone out there who will do it but it will take finger work to find them and the rates might not be the best.

 

Edited July 9, 2019 by MikeSharp01

[eandg]

15 hours ago, davidc said:

Not sure if this is a question lies outside the scope of the forum but here goes.

 

Has anybody any experience of applying or obtaining a lifetime mortgage or equity release type arrangement on a new self build constructed entirely from timber (i.e. with no masonry leaf) ?

 

I had heard that all-timber construction has traditionally not been an acceptable form of security for providers of this type of product but wondered if that may be less true where the property is built to contemporary building regs and warranty standards ?

Most lenders in this market (with the sole exception of Ecology AFAIK) don't lend on more than 50% timber cladding. So if you are going timber-on-timber then Ecology may be the only game in town. 

[lizzie]

1 hour ago, eandg said:

Most lenders in this market (with the sole exception of Ecology AFAIK) don't lend on more than 50% timber cladding. So if you are going timber-on-timber then Ecology may be the only game in town. 

That is not correct others lenders will do it, not for build though just once complete. Think Ecology do it for build and then you have to remortgage once complete?

[davidc]

1 hour ago, eandg said:

Most lenders in this market (with the sole exception of Ecology AFAIK) don't lend on more than 50% timber cladding. So if you are going timber-on-timber then Ecology may be the only game in town. 

 

I wasn't aware that Ecology even operate in the lifetime mortgage market for a property of any type. Are you saying that they do ?

[lizzie]

@davidcif you are looking for an eq rel/lifetime mortgage once you have built then via a specialist broker is the way to go.  There are a few lenders that deal with 100% timber the broker will be able to access them.  Very few of these loan providers deal direct with the public as its a highly regulated area.

 

[eandg]

4 hours ago, lizzie said:

That is not correct others lenders will do it, not for build though just once complete. Think Ecology do it for build and then you have to remortgage once complete?

Sorry, I was referring to self-build only. 

[Teaboy]

We tried to get a lifetime mortgage after we completed the build, warranty in place etc., house was only been completed 9 months ago.  We have a contemporary design, ground floor block and render with upper floor timber frame and cedarwood cladding, with flat roof.  We weren't successful, although we did try only one broker. Like others have said, our broker confirmed that most lenders in the equity release, lifetime mortgage areas are very few and far between and don't like "non standard construction". I'd be interested to know if anyone has been successful.

 

[Russell griffiths]

When you say 50% timber cladding, how would this be with an icf house with timber cladding, would I be wise to increase the rendered sections to over 50% of wall area just in case in the future we want to equity release. 

[lizzie]

There are lenders that do it.  I know someone who did a lifetime mortgage last year. Mainly Timber clad and some render, flat roof.  Not all lenders will do it but they are out there you just need a good broker to go to the right lender. Not all brokers are on panel for all lenders so worth establishing at the outset if they have any experience with this type of build.

[MikeSharp01]

Got an update on this one. Set my local expert the task of looking into the matter and,  it seems that there may be no equity release / lifetime mortgage companies prepared to deal with non traditional construction out there. Although not exhaustive it seems that the risk appetites of these companies is so low that they won't touch them.