Equity Release For a Cottage or House With a Thatched Roof

If you are considering releasing equity from your home but happen to have a thatched roof or thatched cottage, then you might be worried that no lender will accept you.

However, you will be pleased to hear that most lenders will accept a thatched cottage for an equity release loan.

Homeowners are more likely to get an equity release loan if their property is made out of reed or straw. You must also have a certificate to tell you when your roof was last thatched.

Lenders are now more open minded than ever and are in fact willing to lend to owners with a thatched roof.

However, it is important to understand that there might be a few conditions in place, and the lender will ask for a surveyor to conduct their own survey on the condition of the property.

Before we look into why lenders are in fact able to accept most properties with a thatched roof, it is important to understand why some people would think that they might be rejected.

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Why are lenders cautious to release equity on a thatched roof?

The main reason why lenders might be dubious when it comes to releasing equity on a thatched roof is because these types of housing are on the decline, due to the sheer upkeep and cost of that upkeep.

This means that most people with a thatched roof on a house or cottage might struggle to sell their house.

As you can imagine, for an equity release lender this would pose a huge threat and rightfully so.

Below are some more reasons why lenders might be cautious when it comes to lending to someone with a thatched roof.

1. Risk of fire

Unfortunately, those who live in a house with a thatched roof are far more at risk of a house fire, due to the fact that the material is more prone to fire and if there is a fire, then the fire will spread much more quickly than it would inside of a tiled roof.

2. Increased maintenance

If you have a property with a thatched roof, then we won’t need to tell you how often and how expensive it is to get your house re-thatched.

Re-thatching is one thing, but there are also a number of other factors you must consider on a regular basis to keep your thatched roof well maintained and safe to live under.

3. Increased chances of a pest issue

Unfortunately, if you have a thatched roof then you are much more likely to suffer from a pest issue.

This includes more visitors from the likes of rats, squirrels and mice. When you have a thatched roof, these types of animals are much more likely to burrow their way into your home.

Likewise, birds can also eat away and easily destroy the thatched roof and straw, which might weaken the roof over time making you more prone to leaks.

4. Increased risk of a leak & damp

If you have a thatched roof, then you are at increased risk of a leak. This is particularly the case if you have not been maintaining the condition of your thatched roof.

Likewise, you are also at increased risk of having damp inside the house. This is because thatched cottages have solid walls without cavity insulation which are often not damp-proofed.

5. Higher insurance

If you have a thatched cottage or roof on your property, then you will likely have to pay more for your home insurance. This is especially the case if you also have a listed building.

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The Typical Lifespan of a Thatched Roof

Thatched roofs are undoubtedly beautiful features of a cottage and feature on many postcards across the UK.

However, it is important to understand that thatched roofs are incredibly expensive to maintain and are currently in decline. In fact, only around 60,000 properties across the UK have thatched roofs.

Most thatched roofs can last you between 10-20 years. This is only if your roof was thatched by a skilled thatcher, using high quality straw.

However, water reed, which is the most durable material you can thatch a roof with, can maintain your roof for over 40 years or more [1].

How long your thatched roof will likely last is also based on other factors, such as where you are in the country.

However, whilst some thatched roofs might last for as long as 40 years, when it comes to releasing equity, most properties struggle to qualify for equity release.

This is not because they have a thatched roof, but because most houses with a thatched roof are listed buildings [2].

In fact, some lenders such as Canada Life refuse to lender on some listed buildings. This is especially the case if the property is Grade 1 or Grade 2 listed.

They will only consider a listed property for a few reasons, one being if the property has a timber frame and was built before 1960 [2].

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Why are equity release lenders cautious about lending on listed buildings?

Many equity release lenders are cautious about lending to individuals who own a listed building as they have a greater uncertainty surrounding them when it comes to their value.

There are also a number of restrictions placed upon listed buildings when it comes to renovation work.

When you opt for equity release, you are committing to living in your home for a number of years, with many people opting to use their equity release funds to pay for home improvements and home renovations.

Many home improvements and renovations include making your home accessible as you age, including installing handrails, ramps, a more accessible garden, a stairlift or even a wet room for downstairs in the property.

If your property is listed, then you might not be permitted to do these things, which might mean that as you age you are unable to remain living in your home and have to move into a care home.

What should you do if you have been refused equity release because of your thatched roof?

If you have been refused an equity release loan due to your thatched roof, or due to the fact that your property is a listed building, then you might want to consider applying with another lender.

Each lender has different criteria, so it is important to understand the differences between each lender and which one(s) you might want to apply to [3].

Your equity release adviser should be able to put you forward for lenders who are likely to approve your application, although some advisers are only tied to a handful of lenders, some of which might not accept those with a thatched property.

Please call our 24-Hour Helpline: 0330 058 1579

Speak to Equity Release Warehouse

If you are considering releasing equity from your home but are concerned because your property is made out of a non-standard construction type or material, such as thatch, then reach out to a member of the Equity Release Warehouse team.

Our team of specialists are on hand to provide you with the very best advice for your family, including which lenders you might want to opt, the equity release process in general and for an indication on just how much equity you might be able to release from your home, depending on what your home is valued at.

Start your equity release journey today by calling us for free for a consultation on 0330 058 1579.

References

[1] https://nsmtltd.co.uk/thatched-roof-lifespan/

[2] https://www.ftadviser.com/mortgages/2019/08/02/curious-reasons-for-lenders-denying-equity-release/

[3] https://nationaldebtline.org/get-information/guides/equity-release-ew/