Equity Release if I have a Flat Roof
The majority of equity release advisers are asked on a weekly or monthly basis whether or not someone can release equity from their home if they have a flat roof. In fact, it is also one of the most searched for terms when it comes to searching across equity releases online.
The short answer is yes, you are able to release equity from your home if you have a flat roof, although there are a number of considerations that both you and your lender will need to put in place if you want to release equity from your home.
There are a number of reasons why there are more complications in place if you have a flat roof.
For example, from the lender’s perspective, having a flat roof means more maintenance and upkeep, and the fact that the property might be harder or take longer to sell once the homeowner passes away or moves into a care home.
Equity release recapped
Equity release is another type of loan. However, this loan involves releasing the money, or equity, that is already stashed up inside your property.
This equity includes your initial deposit, the monthly mortgage repayments you have been making (minus the interest) as well as the value in which your home has increased over the years [1].
The best part about equity release is that you do not need to move out of your home in order to get access to this money. You can remain living in your home until you pass away or move into a care home.
Once this happens, your property will be sold and will pay off the equity release loan in full. If there is anything left over after you repay the loan, then this money will go to your loved ones as inheritance.
You are charged interest on your equity release loan and this interest, although fixed, will compound.
This compound interest will be added onto the overall loan amount and will also need to be repaid. You are free to spend the equity release funds on whatever you want, including home renovations, buying a second property or helping a loved one or friend [1].
There are no mandatory repayments whilst you live, although you can opt to repay some of the loan early if you wish to do so, which could keep some of the compound interest at bay. However, you will need to watch out for any early repayment fees, which could be up to 10% of the value of the loan.
Types of flat roofs and their durability
Flat roofs can be used for things such as extensions and additions to a house. However, in some cases, the entire property can have a flat roof. A lender will assess your property to try to establish exactly how much of the property has a flat roof [2].
Different roofs are made from different materials, and this is especially the case where flat roofs are concerned. Most durable flat roofs are made from a material such as EPDM rubber, which is very durable especially in bad weather. Other flat roofs are made from materials such as GRP, which is also resistant to extreme weather and hot temperatures [2].
However, some flat roofs are made from less durable materials such as felt, which is significantly less expensive to use but is also prone to more damage and typically has a shorter lifespan.
Your equity release lender will want to assess what type of material your flat roof is made out of, in order to assess whether or not your property is eligible for equity release in the first place.
Remember, your lender wants to ensure that your property’s value will hold and that they will get a return on their investment in years to come.
Why are equity release lenders cautious about lending on a flat roof property?
There are a number of reasons why equity release advisers are cautious about lending to people with a flat roof [3]. Some of these reasons are listed below for you.
- High costs when it comes to maintenance and repair
- The risk of a flat roof moving or bending over the next 20 years
- An increased risk of the roof flooding or growing moss
- An increased risk of damp walls or leaks in years to come, depending on how old the flat roof is
- An increased risk of moisture problems due to drains becoming blocked
- Less insulation compared to other roofs, which leads to a loss of heat
Tips to improve your chances of getting approved for equity release with a flat roof
If you own a property that has a flat roof and you want to apply for an equity release loan, then there are a number of things that you can do to increase your chances of getting approved for a lifetime mortgage or a home reversion plan.
For example, you should have your roof inspected before being inspected by your equity release adviser. Hopefully, they will write up a roofing report that explains that your roof is in good condition which will then reassure lenders.
You should also opt to upgrade your roof if there are any issues with it prior to applying for an equity release loan.
You could always swap out your flat roof and the materials it has been made with for something more durable, such as GRP or EPDM which can improve your roof’s lifespan.
Alternatively, you can opt to work with a specialist adviser who has experience in helping people with a flat roof get approved for an equity release loan. A good equity release adviser will be able to find you a few different lenders and products.
It is also important to shop around as much as possible and look at different lenders. Not all lenders have the same criteria when it comes to equity release. So, although one equity release lender might not allow you to qualify for equity release with them, another might approve you instantly.
Speak to Equity Release Warehouse
If you are considering releasing equity from your home but are worried because you have a flat roof, then you should speak to a member of the Equity Release Warehouse team.
Our team of specialist advisers are on hand to provide you with the very best information for you and your personal circumstances and will be able to offer you a range of different products from different lenders across the country.
The team at Equity Release Warehouse won’t ever put any pressure on you to release equity unless you want to, and you are free to use their very own equity release calculator to work out roughly how much you might be able to release from your home before formally applying for a lifetime mortgage or a home reversion plan.
Start your equity release journey today by calling us on 0330 058 1579 or by visiting us online by searching for https://www.equityreleasewarehouse.com.
References
[1] https://www.equityreleasewarehouse.com/help-centre/
[2] https://roofingcenter.com/the-durability-of-flat-roofs-an-in-depth-analysis/
