Securing a mortgage against a listed building can be notoriously difficult for a number of reasons, however this is something we have done successfully at Enness a fair few times.
Lenders generally do not like lending against listed buildings, as they come with very strict guidelines to what you can and can’t do to the property in order to preserve it. Because of this, lenders are also wary to lend because they worry about the resale of the property, as listed buildings tend to be old or have unusual construction, which would not appeal to everyone.
The two different grades of listed building usually come under Grade 1 – which is classed as a building of exceptional interest, only very few of which are actually homes, and Grade 2 – particularly important buildings of very special interest. Naturally, Grade 2 is easier to securing lending on, whereas Grade 1 can be extremely difficult.
The challenge comes with standard high street lenders, who will nearly always not even have the conversation about a listed building. Equally, some lenders will reduce the loan to value (LTV) sub 65% to 70% LTV.
Another thing you will need to factor in when getting a mortgage against a listed building, is building insurance. This is also a very specialist market, where the premium to insure a grade 1 or 2 listed property can be high, making affordability tight and consequently putting off any potential buyers.
Essentially, it comes down to finding a lender you can have a sensible conversation with. In our experience, this is typically easier to do with smaller building societies or private banks, as they tend to approach lending with a more holistic outlook.
At Enness, we have excellent relationships with a variety of these types of lenders across the market, who would be willing to have the conversation. Feel free to get in touch if this is of interest to you.