Mortgages for Retirement Homes
Mortgage & Bridging Loan Service For Retirement Homes
Looking for a mortgage or bridging loan solution to buy a house?
Why use our service?
Need to buy before you can sell - use our bridging loan service
Terms - From 1 month to 3 years
Interest rate roll up schemes
Whole of market service - we work directly with UK lenders
Lowest Rates - Access to leading deals
Fast turnaround - speak to us today if you need to move quickly. 5 to 7 days possible for bridging finance.
To investigate your options if you are looking at mortgage or bridging loan finance to buy a house for retirement call our finance team on 0117 403 4474 or fill in our call back form.
Mortgages & Bridging Loans To Finance A Retirement Home
Retirement homes tend to be offered on a rental basis; however there are some instances in which you will be able to purchase a retirement home either outright by utilising your savings, or by getting a mortgage.
However, obtaining a mortgage for a retirement home is typically troublesome and can often be made simpler by requesting specialist assistance from an expert mortgage advisor.
Buying retirement homes - the fundamentals
If you wish to purchase a property in an exclusive retirement village, housing block or development, the method by which the property is sold is probably going to be broadly the same as that of other blocks of flats – the individual flats or houses are sold on a leasehold basis.
This means that you have purchased the right to occupy the property for the period of the lease. Most leases are many decades long. The longer the lease, the better, as you will not have to worry regarding extending the lease in the future.
Once you've bought a retirement home you have to be responsible for additional charges.
These charges might include:
Annual ground rent that is paid to the property owner
A service fee every year to finance the work of the management company – this will typically cover things like buildings insurance (you will typically be required to organise your own contents insurance), maintenance and cleanup for communal areas, grounds maintenance, and repairs to the structure of the buildings
Depending on the kind of retirement property you select, you may additionally encounter further charges for medical care, meals, or onsite activities
Can I get a retirement home with a mortgage?
Some mainstream mortgage lenders won't lend to borrowers over a particular age, or will stipulate that the mortgage be paid off by a fixed age. However, there are a number of specialist mortgage brokers who can supply mortgages to individuals on repayment terms that go up to the age of 110.
Despite this, obtaining mortgages for retirement homes may be a troublesome proposition, for 2 main reasons:
Firstly, obtaining a mortgage for leasehold properties is often typically somewhat tougher than obtaining a mortgage for a freehold property, no matter whether it is a retirement home or not. As most retirement homes are offered on a leasehold basis owing to being a part of a bigger retirement complex, this might be a problem.
Secondly, a lot of mortgage lenders look for reselling potential when they are considering whether or not to supply a mortgage deal – and retirement homes have a restricted target market and thus a restricted selling potential as far as many mortgage lenders are concerned.
Find the correct retirement home mortgage deal for you
If you wish to buy a retirement home by means of a bridging loan or mortgage it makes sense to talk to a whole market adviser such as ourselves. Our dedicated whole of market mortgage & bridging loan team will assist you to find the correct finance for purchasing a retirement home – call us today on 0117 403 4474 or request a callback.