Equity Release Supermarket (ERS) has teamed up with later-life lender LiveMore to offer a solution, named LiveMore Property+, for homeowners previously ineligible for equity release due to specific property features like spray foam.
The underwriting process for equity release has traditionally been restrictive, with lenders often showing less flexibility compared to the mainstream mortgage market, particularly concerning properties with spray foam insulation. This has posed a significant barrier for thousands of UK homeowners who have used spray foam for insulation to cut their fuel bills.
“Spray foam insulation sounds like a great way to protect your home from the cold weather, and has been on the market for over 30 years. However, when it comes to financing a property, whether for re-mortgaging, buying a new home, or applying for equity release, it can present a serious issue,” said Mark Gregory, founder and CEO of Equity Release Supermarket.
The Royal Institution of Chartered Surveyors (RICS) estimates that over 250,000 homes in the UK have spray foam insulation. However, its potential risk to a property’s structural integrity can discourage lenders from securing loans on these properties.
ERS and LiveMore aim to address this issue with their new product, LiveMore Property+. The new lifetime mortgage targets homeowners aged between 50 and 90 and seeks to broaden the accessibility of equity release.
“We’re delighted to work alongside LiveMore in bringing to market the new LiveMore Property+ plan. It offers a far more flexible underwriting approach than the standard lifetime mortgages currently available,” added Gregory.
The amount customers can borrow through Livemore Property+ depends on the youngest applicant’s age and the property value. A distinguishing feature of the LiveMore Property+ plan is that it requires the spray foam to be removed after releasing funds, allowing homeowners without upfront savings for spray foam removal to complete the work within 90 days after receiving their equity release money.
In addition to spray foam issues, the product also addresses other factors that have previously prevented equity release, such as proximity to commercial property, flood zones, service charge and ground rents, and certain construction types.
