Mortgages for Retirement Properties
Best Mortgage Rates
Mortgages for Retirement Properties
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- Lloyds Bank
- 4.07% Initial
- 5 year fixed
- 6.6% APRC
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Cashback Max £250Free LegalsFree Valuation
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- 4.10% Initial
- 5 year fixed
- 6% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.14% Initial
- 5 year fixed
- 6.3% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.17% Initial
- 5 year fixed
- 6.4% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.17% Initial
- 2 year fixed
- 6.7% APRC
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Cashback £0Free LegalsFree Valuation
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- Halifax
- 4.18% Initial
- 5 year fixed
- 6.7% APRC
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Cashback Max £250Free LegalsFree Valuation
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- Halifax
- 4.18% Initial
- 5 year fixed
- 6.7% APRC
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Cashback Max £250Free LegalsFree Valuation
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- 4.19% Initial
- 5 year fixed
- 6% APRC
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Cashback Max £1,250Free LegalsFree Valuation
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- 4.19% Initial
- 2 year fixed
- 8% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.20% Initial
- 5 year fixed
- 6% APRC
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Mortgages for Retirement Properties
Mortgages for retirement properties: find the best ones
Many retirement properties are available for rent, but you may also be able to purchase a retirement property outright or with a mortgage if you have enough savings.
You may need specialist advice if you are interested in obtaining a mortgage for a retirement property.
The basics of buying retirement properties
In a retirement village, apartment block, or housing development, the way in which the property is sold is likely to be broadly similar to that of any other block of flats - the individual flat or house will be sold on a leasehold basis.
In other words, you have purchased the right to live in the property for the duration of the lease. In general, the longer the lease, the better, since you won't have to worry about renewing it in the future.
In the event that you purchase a retirement property, you will be responsible for several ongoing charges. Costs may include:
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The freeholder is responsible for collecting annual ground rent.
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In general, you will be charged a service charge for the management company each year, which will cover costs such as buildings insurance (contents insurance is usually your responsibility), communal area maintenance and cleaning, grounds maintenance, and repairs to the building structure.
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A retirement property may also charge extra for nursing care, meals, or onsite activities, depending on its type.
Is it possible to buy a retirement property with a mortgage?
It is technically possible to buy a retirement property with a mortgage. There are some specialist mortgage brokers who will offer mortgages on repayment terms that go up to the age of 90, whereas many high street lenders won't lend to borrowers over a certain age or will require payment by a certain age. In spite of this, getting a mortgage for a retirement property can be challenging, due to two main reasons:
Getting a mortgage for a leasehold property can be a little more challenging than getting one for a freehold property, regardless of whether it is a retirement property.
Some lenders refuse to offer mortgages on certain kinds of flats or apartments, including retirement properties. Secondly, many mortgage lenders consider resale potential when considering whether to offer a mortgage deal - and retirement properties have a limited target market and therefore 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