Equity Release In A Flood Risk Area: What Are Your Options?


Equity Release In A Flood Risk Area: What Are Your Options?

Can You Access Your Cash If Your Home Lies In A Flood Zone? What happens if your home has previously flooded or could do in the near future? Are you still eligible for equity release? Are you planning to release equity from your home to fund your retirement? If so, you might be surprised to learn that flood risk could be a deciding factor in your eligibility for this type of deal. Climate change is an ever-increasing problem, and homeowners can often find that properties they’ve lived in for decades have now become a flood risk as the planet has warmed up over the years. Living in a home of this sort can be challenging in terms of sourcing insurance and mortgage products, whilst it can also impact the value of your property. But what exactly does flood risk mean when it comes to the potential for equity release?

Is Your Home At Risk?

If you are interested in equity release as part of your future financial plans, then your equity release advice specialist will help you determine whether your home is located in a flood risk area or not. Remember that the zones do change in line with climate change progression. The latest Met Office stats find that the UK’s highest rainfall totals over a five-day recording period were 4% higher between 2008 and 2017 than they were between 1961 to 1990. There was also a 17% surge in extremely wet days over the same time periods. If you live near a natural water source including a river, stream or lake, then you may have an increased risk of flooding. However, standing water can also present a threat to your property. It’s best to have an updated look at the situation before you begin your equity release application. The government provides information on how to analyse your long term risk of flooding, immediate risk of flooding and flooding within the next five days.

Increase Your Chances Of Being Eligible For Equity Release

If you discover that your property now lies within a flood risk area, this doesn’t mean that equity release is out of the question for you. However, just like with mortgage lending, you’ll find that your equity release deal is directly impacted by the condition of your property. Some providers may not be comfortable releasing equity to you when there is an increased risk, so this can limit the pool of lenders available to you. In this scenario, it’s important to gain professional advice from a reputable and independent equity release service, who have access to a network of approved plans with corresponding guarantees.

Is It A Good Idea To Release Equity If Your Home Is At Risk?

Of course, finding an equity release provider is only half of the decision, and you may be concerned about the advantages of releasing equity from a property that has previously been flooded or may flood in the future. The best advice for homeowners in this situation is to seek advice from an independent equity release broker who can outline the financial benefits of this type of arrangement. This could include what could happen to the value of your property in the long-term, and the impact on your inheritors. If you’re approaching retirement and wish to plan for the near future, then now is the time to arm yourself with the facts about your property before investigating if equity release is the right path for you.