We are in the final stages of implementing our mandatory loans for leaseholders and I have asked what the Authority would do if we receive a loan application from a leaseholder who has either a lifetime or an equity release mortgage.

I’m aware that neither of these providers will allow a second charge against the property and I assume, this is because it diminishes the value of their asset.

Where does this leave the City Council in line for financial recovery if a second charge on the property is refused?  Should/do we have to continue with the loan? Surely it can’t be expected for us to, potentially knowing we will not be in a position to recover our costs? However, mandatory is mandatory? Can we refuse on the basis the loan cannot be secured?

There are more and more residents opting for equity release/lifetime mortgages and I’d like to ask you please what your thoughts are in relation to the topic. Can you shed any light on this for me please? Let us know below.