standard Mortgage on Listed Building

Damian Youell

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Mortgage on Listed Building

If you are considering getting a mortgage on an older property, it could be a listed building and arranging a mortgage loan for this type of building may not be as straight forward as a normal standard property.

Post Topics

What is a listed building?

Can you get a mortgage on a listed building?

Next steps


What is a listed building?

A property that is a listed building are usually considered of historical or architectural importance and will be put on a register on The National Heritage List for England (NHLE) to preserve the property for future generations. Anyone can nominate for a building to be listed but buildings that are not more than 30 years old are unlikely to be classified as a listed building as it hasn’t stood the test of time. Generally, properties built before 1700 and between 1700 and 1850 are likely to be considered a listed building providing, they are close to their original conditions.

There are three different gradings for listed buildings, Grade I, II and III. Only 2.5% of listed buildings are Grade I and properties in this category are considered to have significant national importance. Grade II buildings are considered important buildings of more than special interest and only 5.8% of listed buildings are in Grade II. Grade III listed properties are more common, with 91.7% of listed buildings classed as Grade III. It is more likely a borrower would be looking to get a mortgage loan on a Grade III listed building.


Can you get a mortgage on a listed building?

The good news is, it is possible to get a mortgage loan for a listed building, but it is more difficult when compared to a standard property as mortgages are secured loans and the loan is secure against the property. It provides lenders with a security if in the instance they need to repossess the property and sell it. Lenders are more cautious about listed buildings as finding a buyer for listed buildings can be more difficult as it is a limited market.

Listed properties are protected by law and to preserve the property, you will be required to gain listed building consent before any building work can be carried out and this is different from planning permission. This includes inside the property and possibly the grounds surrounding it unless there are exclusions listed on the database. Usually, you will not be able to make changes to the property that aren’t in keeping with the original building or your consent may be refused to avoid causing any damage to the building. Lenders will check and if any unpermitted work has been carried out on the property previous, they may refuse to lend.

Not all lenders will lend on listed properties, but lenders with more experience with this type of loan will be more willing to consider a mortgage application for a listed building. They may stipulate certain requirements and criteria’s before agreeing to a loan. You may find lending terms may be shortened to reduce the risk of their security due to the property degrading overtime. They may also require a higher deposit to lower the loan to value ratio due to the increased risks of loaning on a listed property. Applications will usually be assessed on a case-by-case basis.


Next steps

Finding a lender for a mortgage for listed buildings can be tricky but getting professional advice from a mortgage broker can help make the process easier and save you time. A mortgage broker will be able to use their experience and expertise to direct you to lenders most appropriate for your personal circumstances and find you the best deal possible.

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