Equity release on listed properties

Explore if your listed property could be eligible for equity release

If you are lucky enough to own a listed building then you may already be aware that there are certain restrictions in place that serve to protect your property for future generations. This means that equity release providers will typically need to give special consideration to a property if it is a listed building. 

In this guide to equity release on listed properties, we will explore the following:

• How does equity release work?
• What is a listed property?
• What are the different categories of listed buildings?
• Can you get equity release on listed properties?
• Why can it be difficult to get equity release on listed properties?
• Which types of listed property are potentially eligible?
• Getting advice on listed property equity release.

To speak to a specialist adviser about unlocking the tax-free money from your listed property, call our friendly team on 0808 178 3055, or request a call back. 

How does equity release work?

Equity release enables homeowners aged 55+ to unlock some of the tax-free cash from your home’s value. 

There are two main types of equity release. The most popular option is a lifetime mortgage which is available as a lump sum or drawdown plan. After releasing a percentage of your home’s value as a secured loan, you’ll continue to own 100% of it. 

The loan plus interest is typically paid back through the sale of your home when you pass away or move into permanent long-term care, hence why there are no mandatory monthly repayments.

Alternatively you can arrange a home reversion plan, which involves selling a portion of your property to a provider in exchange for a lump sum payment or a regular income. This is a less common form of equity release, but one or two providers still offer it.

Read ‘how to release equity if you are under 55’ if you are under the minimum age for a plan.

Want to know how much you could unlock from your home? Check your eligibility and get your free quote now.

What is a listed property?

Listing a building means it has a special architectural and historic interest. The status brings strict controls over any alterations, extensions and demolition. This protects the building for future generations to see and enjoy.

A building is more likely to be listed if it’s very old or if there are few surviving examples of its kind. Generally, buildings built before 1700 are likely to be listed, as are most buildings built between 1700 and 1850. 

It is less common, but certainly not unheard of, for newer buildings to be given listed status. They would need to be particularly special to qualify.

What are the different categories of listed buildings?

There are around 500,000 listed buildings in England and Wales on the National Heritage List. They fall into three specific categories or ‘grades’ which Historic England defines as:

• Grade I buildings. These are of ‘exceptional interest’. Only 2.5% of listed buildings are Grade I.
• Grade II* buildings. These are particularly important buildings of ‘more than special interest’. 5.8% of listed buildings are Grade II*.
• Grade II buildings. These are of ‘special interest’. 91.7% of all listed buildings are in this class and it is the most likely grade of listing for a homeowner.

Things are slightly different in Scotland, where listed buildings are put into the following categories according to the Scottish Borders Council:

• Category A. These are buildings of national or international importance, either architectural or historic, or fine little-altered examples of some particular period, style or building type.
• Category B. Buildings of regional or more than local importance, or major examples of some particular period, style or building type which may have been altered.
• Category C. Buildings of local importance, lesser examples of any period, style or building type, as originally constructed or moderately altered; and simple traditional buildings which group well with others in Categories A and B.

Northern Ireland uses a similar system to Scotland, using grades A, B+, B1 and B2.

Can you get equity release on listed properties?

Yes there are some providers who will offer you an equity release plan if your home is a listed property. However, you might find it difficult to get equity release on a listed property if you have a certain grade of listing. 

Read on to explore which grades are more favourable than others to equity release lenders and why.

Why can it be difficult to get equity release on listed properties?

If you own a listed building then you may find you are unable to arrange equity release on your current home. This is because homes with listed building status come with rules and regulations that can make them harder to sell.

Equity release loans plus interest are typically repaid from the sale of your home when you pass away or move into long-term care. This means that providers have to ensure that your home will sell in a reasonable amount of time when necessary. 

If there are restrictions on the property which could hinder this in any way, then lenders will be more cautious when considering whether to lend to you. 

However, that isn’t to say you can’t arrange equity release on a listed building. In fact, there are many listed properties that are typically acceptable for equity release plans, which we will discuss next.

Which types of listed property are potentially eligible?

If you are considering equity release on a listed building then different equity release providers will have their own criteria and requirements. You may find that one lender will consider your listed property whilst another does not. 

If you have a Grade II or Category C listed property  then you may find it easier to find an equity release provider who will offer you a plan. However, providers typically decline Grade I, Grade II*, Category A and Category B listed properties.

For example, say you have a Grade II listed house in England and Wales, or a Category C in Scotland. A quick search of a few providers show that Aviva, Just, Canada Life and Pure Retirement will all consider these properties for a lifetime mortgage.

If you have a Grade I or II* house then Aviva may consider your property on an individual basis. The lender Just will consider B1 and B2 homes in Northern Ireland.

Getting advice on listed property equity release

The great news is that our selected advisers can take your details over the phone to run a search for a provider and plan that suits your individual needs. It’s a hassle-free service that saves you time trying to speak to multiple lenders individually.

If you are thinking about doing equity release on a listed property, make sure you speak to our friendly team. 

Our selected advisers will honestly explain all the pros and cons of equity release to you, arrange everything for you and guide you through the entire process, step-by-step.

Simply call us on 0808 178 3055 or request a call back and we’ll put you in touch with someone who can help. Alternatively, check your eligibility and get an initial indication of how much tax-free cash you could unlock.

About Clare Yates. With over a decade’s experience writing about later life financial planning, Clare offers a wealth of knowledge about equity release, pension annuities, wills, LPAs and more. When she isn’t writing, Clare likes to spend her time baking and going on walks with her husband, two children and their rescue dog. Follow Clare on LinkedIn