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Submit plansWe have built what we think is a beautiful home which was to be our home into our old age (I am over 70 and my husband is 65). Unfortunately we have had to borrow against the building in order to finish the house. It was a steel barn and we have built on the existing concrete slab using the steel frame. We have followed all the rules according to building regs and we will have, when it is finished, almost a Passive Haus. Before we started the build we asked three Brokers if they would lend against a timber frame house and not one said that Lenders would not lend against a timber frame.
We now want to get equity release and have gone to three Brokers who tell us they have ten lenders and all say they will not lend on a timber frame house and we are distraught because if we do not get the equity release we will be forced to sell the house .
My question is this. Why won’t anybody lend against a timber frame which is a solid and recommended form of building and there must be 1000’s who have built their houses like us and who also might want to get Equity release. Furthermore there must be a market for this. Can you give me any advice or do you know of any secret lender who would lend on a timber frame?
Thanks for the question. In principle there should be no issues with a Timber Frame house, however to be able to confirm unfortunately I would need some further info. You have also mentioned Steel Frame and that you have built using the existing steel frame. Most lenders are cautious of steel frame if it is not what they deem to be modern steel frame (post 1983). If it is partly steel frame and pre dates 1983 do you have a structural report on the property?
With regards to the timber frame, most lenders are completely comfortable with Timber Frame itself but issues can be caused by the outerskin. Very few lenders will lend for instance if its timber frame, and more than 50% timber clad (unless there is a brick skin between frame and cladding). Without knowing the full property component details it is hard to say but I would doubt it’s the frame itself that is causing the issue.