Mortgages for Retirement Homes
Best Mortgage Rates
Mortgages for Retirement Homes
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- 3.89% Initial
- 5 year fixed
- 5.9% APRC
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Cashback Max £1,250Free LegalsFree Valuation
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- Lloyds Bank
- 3.92% Initial
- 5 year fixed
- 6.7% APRC
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Cashback Max £250Free LegalsFree Valuation
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- 3.92% Initial
- 5 year fixed
- 6.4% APRC
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Cashback £0Free LegalsFree Valuation
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- 3.94% Initial
- 5 year fixed
- 6.4% APRC
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Cashback £0Free LegalsFree Valuation
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- 3.97% Initial
- 5 year fixed
- 6.5% APRC
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Cashback £0Free LegalsFree Valuation
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- 3.98% Initial
- 5 year fixed
- 6% APRC
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Cashback £0Free LegalsFree Valuation
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- 3.99% Initial
- 5 year fixed
- 6.5% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.00% Initial
- 5 year fixed
- 6.8% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.00% Initial
- 5 year fixed
- 5.9% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.00% Initial
- 2 year fixed
- 6.7% APRC
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Cashback £0Free LegalsFree Valuation
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Mortgages for Retirement Homes
Financing a retirement home with mortgages and bridge loans
Most retirement homes are rented; however, you may be able to buy one either outright or with a mortgage if you have sufficient savings.
However, obtaining a mortgage for a retirement home is typically difficult and can often be simplified by contacting an expert mortgage advisor.
The fundamentals of buying a retirement home
In an exclusive retirement village, housing block or development, the property is likely to be sold in a similar manner to other apartment blocks - the individual flats or houses are usually sold on a leasehold basis.
You have purchased the right to occupy the property for the term of the lease. Most leases last for many decades. The longer the lease, the better, since you won't have to worry about extending it in the future.
You will be liable for additional charges once you purchase a retirement home.
Charges may include:
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An annual ground rent paid to the property owner.
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An annual service fee to cover the management company's work - it typically includes things like buildings insurance (you'll need your own contents insurance), maintenance and clean-up of communal areas, grounds maintenance, and repairs to the buildings' structure.
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Depending on the type of retirement property you choose, you may also have to pay extra for medical care, meals, or onsite activities.
Is it possible to get a mortgage on a retirement home?
Many mainstream mortgage lenders won't lend to borrowers over a certain age, or will require them to pay off their mortgage by a certain age. There are, however, a number of specialist mortgage brokers who can provide mortgages with repayment terms up to 110 years of age.
There are two main reasons why obtaining mortgages for retirement homes may be challenging:
As a general rule, obtaining a mortgage for a leasehold property is usually more difficult than obtaining one for a freehold property, regardless of whether it is a retirement home. As most retirement homes are part of larger retirement complexes, they are offered on a leasehold basis.
Second, many mortgage lenders consider reselling potential when determining whether or not to offer a loan - and retirement homes have a limited target market and thus have a limited resale potential.
To investigate your finance options call our broker team or fill in our call back form - speak to our independent mortgage broker team who will be able to offer impartial advice or you can call us on 0117 403 3464