Flat roofs, commercial property and clutter are barriers to acceptance when it comes to applying for equity release, according to findings from more2life.

Research by the equity release lender has highlighted that while criteria varies between funders, homes with flat roofs that take up more than 25% of the property, those close to commercial property or filled with clutter that makes a valuation difficult are less likely to be accepted.

While just 8% of cases are rejected across the equity release market, more2life tracked the reasons that cases are declined to help advisers better manage clients’ expectations.  

Other reasons for rejection included flood risk, types of cavity insulation that are non-standard and may cause resale issues in the future, as well as structural issues raised by the surveyor that could mean resale is not possible or the property is not safe.

“While the vast majority of cases move from offer to completion smoothly, some issues with properties that will impact the final resale value mean that they are more likely to be declined,” commented more2life CEO, Dave Harris.

“It is vital that advisers know that properties with large flat roofs near commercial premises with foam insulation may struggle to be accepted so they can manage their clients’ expectations.”

more2life’s research also claimed that excessive clutter can make it extremely difficult for a surveyor to ascertain the integrity of a structure and may impact the resale value. The adviser highlighted that prior to the pandemic this issue may have been less prevalent, as it might have been noticed during the face-to-face advice process and explained to customers.

“With the pandemic restrictions and more advice than ever before being provided remotely, it has become far harder for advisers to pick up on details such as clutter or notice that something is not quite right with a structure,” Harris added.

“An in-depth and wide ranging discussion as part of the advice process can help – especially if any concerns are shared with the client and the lender.”

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