Lending Policy
Applicant Suitability
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- Minimum Age – 55
- Maximum Age – 85
- For joint applications, the minimum and maximum age limits apply to the younger applicant, therefore, the older applicant can be above the maximum age limit
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- Maximum Applicants - 2
- Joint applicants can be Joint Tenants or Tenants in Common
- Minimum Borrowing - £30,000
- Maximum Borrowing - £1,500,000 (underwriter referral required for all borrowing above £750,000)
- Details of applicant income will be requested as part of the application keying process, however evidence of income will not be requested and monthly mortgage repayments do not apply
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- Any additional occupants aged over 17 years living in the property and not named on the mortgage must sign a Consent to Mortgage form in all cases
- The property must be the applicant’s main residence. For joint applications, it must be the main residence for both parties
- Accept up to 2 lodgers
- A lodger is defined as a person who pays rent in return for accommodation in someone else's house, this will include sharing the kitchen, bathroom and communal areas
- Tenants – unacceptable
- A tenant is defined as using the property as their primary residence, which is typically a self-contained unit and has legal protections under landlords-tenant laws usually via a tenancy agreement
- Any spouse/civil partner who is not an owner of the property, and therefore not a party to the lifetime mortgage, must have independent legal advice as to the nature and effect of the occupier waiver form/deed of consent. The legal adviser cannot be the same, or from the same firm, as the customer’s adviser
Property Suitability
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Where a property has more than five acres of land, the valuation will only include the first five acres. Any remaining land must not have any commercial / agricultural use.
Acreage criteria Criteria
Acceptable
Criteria
Property with over 20 acres of land (can refer for approval subject to no agricultural or commercial use)
Acceptable
Consider
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Commercial use criteria Criteria
Acceptable
Criteria
Property intended for commercial purposes
Acceptable
No
Criteria
Property incorporating generation/distribution apparatus e.g. substations, masts and gas pipelines which are deemed commercial in nature
Acceptable
No
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Environmental criteria Criteria
Acceptable
Criteria
Flooded properties, including any outbuildings or garden land, which has flooded in the last 5 years where flood measures have since been completed
Acceptable
Consider
Criteria
Properties where Japanese knotweed or other notifiable invasive plants are present and would be categorised as Royal Institute of Chartered Surveyors (RICS) Category 3 or above by the valuer
Acceptable
Consider
Criteria
Property built on contaminated land
Acceptable
No
Criteria
Where a property, including any outbuildings or garden land, is threatened by flooding or coastal erosion the property will be assessed for flood risk. If a property is assessed as being in a high-risk zone, it will be unacceptable
Acceptable
No
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Ground rent, Service Charge or Management fees criteria Criteria
Acceptable
Criteria
Ground rent charge no greater than 0.1% of the estimated property value
Acceptable
Yes
Criteria
Annual service charge no greater than 1.5% of the estimated property value
Acceptable
Yes
Criteria
Where the annual service charge is between 1.5% – 2% of the estimated property value
Acceptable
Consider
Criteria
Property which has a service charge that exceeds 2% of property value
Acceptable
No
Criteria
Properties that have an estate management fee and the applicants do not have a share in the management company
Acceptable
No
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Listed buildings criteria Criteria
Acceptable
Criteria
Grade 2/Grade 2* and B/C Scotland
(must be detached property)Acceptable
Consider
Criteria
Grade 1/Grade A Listed Buildings
Acceptable
No
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- Property must be in good repair and suitable for lending
- Name(s) on Title Deeds must match applicant(s). If these do not match at point of application, depending on the circumstances it may be acceptable for the solicitor to amend the deeds to match prior to/on completion
- Property subject to partial Title split is unacceptable
- Property subject to a trust is unacceptable
The Property must:
- Be unencumbered, or;
- If an existing mortgage is in place, or if any other lending is secured against the property, this must be paid off using the proceeds of the new Lifetime mortgage
- Owned by the applicant for at least 6 months, except where they inherited following the death of the previous owner or have had the property gifted
The Property must not:
- Have a second charge at completion. Property with a second charge e.g. Right to Buy, within pre-emption period, shared equity, shared ownership, not acceptable if the applicant does not intend to pay off the second charge using the Lifetime mortgage
- Be deemed unacceptable by a valuer due to major restrictions to saleability or significant structural problems
- Be subject to chancel liabilities (where the property owner has an obligation to contribute towards the maintenance and repair of the chancel of a local parish church)
- Be subject to manorial rights entries (legal rights whereby the lord of the manor may have certain rights to the property such as fishing, hunting, mineral, or the right to hold fairs and markets on the property)
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Property construction criteria Criteria
Acceptable
Criteria
Standard Construction (bricks and mortar)
Acceptable
Yes
Criteria
Properties subject to Modern Methods of Construction (MMC)
Acceptable
Consider
Criteria
Timber framed pre 1850
Only acceptable if substantial timber framed with masonry infill (but not single skin)
Acceptable
Yes
Criteria
Poured concrete (e.g. Laing Easiform, Wimpey no-fines etc) Post 1945
Acceptable
Consider
Criteria
Mundic (A 1,2,3 Reports)
Acceptable
Consider
Criteria
Steel framed or steel clad property built before 2000
Acceptable
No
Criteria
Large panel system (LPS) e.g. Bison, Bryant wall-frame
Acceptable
No
Criteria
Pre-cast reinforced concrete e.g. Tarran pre-fabricated, Cornish unit, Cubbitt steel framed
Acceptable
No
Criteria
System built concrete
Acceptable
No
Criteria
Cross wall construction
Acceptable
No
Criteria
Vernacular construction materials e.g. Mundic concrete block or Norfolk clay lump
Acceptable
No
Criteria
100% timber construction e.g. Colt or Swedish timber
Acceptable
No
Criteria
Timber framed property built between 1850 and 1965
Acceptable
No
Criteria
Timber framed property with light weight cement render finish
Acceptable
No
Criteria
Temporary style timber properties e.g. Canadian cedar wood, Norwegian log/timber frame, Colt or Swedish
Acceptable
No
Criteria
Property with single skin brickwork where the single skin (primarily 4 ½” brick) comprises more than approximately 20% of the surface area of the external walls
Acceptable
No
Criteria
Property currently undergoing substantial alterations, extensions, or repairs
Acceptable
No
Criteria
Property where underpinnings have taken place within the last three years
Acceptable
No
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Property construction roof criteria Criteria
Acceptable
Criteria
Tile (concrete)
Acceptable
Yes
Criteria
Slate
Acceptable
Yes
Criteria
Thatched – Detached Property
Acceptable
Consider
Criteria
Thatched – non detached property
Acceptable
No
Criteria
100% flat roof
Acceptable
No
Criteria
Property with asbestos roof coverings or similar composition roof tiles
Acceptable
No
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Property features criteria Criteria
Acceptable
Criteria
Swimming Pool
Acceptable
Consider
Criteria
Annex comprising 50% of property
Acceptable
No
Criteria
Annex occupied by non-family member
Acceptable
No
Criteria
Annex having separate council tax band
Acceptable
No
Criteria
Property with spray foam insulation applied to the underside of the roof
Acceptable
No
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Property location criteria Criteria
Acceptable
Criteria
Properties located in mainland England, Scotland and Wales
Acceptable
Yes
Criteria
Scottish Islands
Acceptable
Consider
Criteria
Properties located in Northern Ireland, Channel Islands and Isle of Man
Acceptable
No
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Property tenure criteria Criteria
Acceptable
Criteria
Freehold
Acceptable
Yes
Criteria
Leasehold
- The age of the youngest applicant + lease term = Greater than 180 years at the date of application
- The age of the youngest applicant + lease term = Between 170 and 180 years at the date of the offer
- The age of the youngest applicant + lease term = Less than 170 years at the date of the offer
Acceptable
YesConsider
No
Criteria
Absolute Ownership
Acceptable
Yes
Criteria
Commonhold
Acceptable
No
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Property types criteria Criteria
Acceptable
Criteria
Flats
Acceptable
Accept
Criteria
Maisonette
Acceptable
Accept
Criteria
Flats between 4-7 stories high
Acceptable
Consider
Criteria
Flats more than 7 stories high
Acceptable
No
Criteria
Flats with balcony access
Acceptable
No
Criteria
Flats that are not brick cladding
Acceptable
No
Criteria
Studio Flats
Acceptable
No
Criteria
Freehold Flats
Acceptable
No
Criteria
Caravans, crofted houses, park homes and log cabins
Acceptable
No
Criteria
Age restricted/ Sheltered Housing
- Age restricted property e.g. retirement villages and sheltered housing with a value equal to or more than £200,000, 3+ years old and resale/exit fee less than 3% of property value
Acceptable
Consider
Criteria
New Builds or properties that have been converted in the last 10 years and have a warranty in place with the following warranty providers
- ABC+
- Advantage HCI
- ARK Insurance
- Build Assure
- Build Warranty Group
- Building LifePlans Ltd (BLP)
- Buildzone
- Cadis
- Checkmate
- CIR
- Compariqo
- FMB Insurance
- Global Home Warranties
- HomeProof
- International Construction Warranties (ICW)
- NHBC
- One Guarantee
- Premier Guarantee - includes the LABC New Homes Warranty and LABC Hallmark Scheme
- Protek
- Q Assure Build
- Thomas Miller
Acceptable
Yes
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- Minimum property value – £100,000
- £150,000 on ex-Local Authority, ex-Ministry of Defence and ex-Housing Association properties; £200,000 on Age Restricted Property/Sheltered Housing
- No maximum property value
- We will arrange for an independent valuer to carry out a physical inspection of the property. The purpose of this inspection is to provide a valuation for lending purposes only. There will be no cost to the applicant and the valuer’s decision will be final.
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Proximity criteria Criteria
Acceptable
Criteria
Property having habitable space within 75m of pylons, over-head power cables or mobile phone masts
Acceptable
No
Criteria
Property that may be impacted by major infrastructure projects
Acceptable
No
Criteria
Close or adjacent to commercial properties / over commercial properties
Acceptable
Consider
Criteria
Properties adjacent to Prisons, takeaway, petrol station, Betting shop, place where heavy machinery is stored, Adult shop, Dry cleaners/laundrette
Acceptable
No
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Roads/Driveways criteria Criteria
Acceptable
Criteria
Property that is accessed via a long driveway that has not been maintained properly
Acceptable
No
Criteria
Property that is accessed via a private road that has not been maintained properly
Acceptable
No
Criteria
Property accessed via unadopted roads which are due for adoption by the Local Authority, unless there is a section 38 agreement in place (these are typically roads on modern estates)
Acceptable
No
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Solar Panels acceptable, however, must be installed with Microgeneration Certification Scheme. The conveyancers will check to ensure the lease provider is on our acceptable lease providers list.
Utilities criteria Criteria
Acceptable
Criteria
Property with solar farms and wind turbines which are not primarily for the use of the property itself (i.e. must not be commercial in nature)
Acceptable
No
Criteria
Septic Tank/Cesspit (must not be shared)
Acceptable
Consider
Criteria
Property served only by private water supply with no mains water supply
Acceptable
No