Head of Content
Mortgage Advisor & Director
Can you get a mortgage on a Grade I listed building?
Getting a mortgage on a Grade I listed building can be a challenge, but you'll be pleased to learn that there are a few lenders in the UK that will consider such a property.
The Grade I entry is reserved for buildings of exceptional interest in the UK and is designed to ensure that we retain these structures as a legacy for future generations. As such, listed buildings are very important to the identity of our communities. Getting a mortgage on a Grade I listed building can be challenging, and most lenders do not even consider these buildings because of the potential problems with maintenance and saleability. However, there are a few lenders who will consider a Grade I listed building, and we would recommend using an experienced mortgage broker to make sure your application has the best chances of approval.
At Teito, we've helped many people like you to fulfil their dream of owning a Grade I listed building, get started now and find your perfect mortgage in minutes!
Why is it harder to get a mortgage on a Grade I listed building?
Getting a mortgage on grade I listed buildings is much more difficult than it would be for a standard property.
The main challenge is that the pool of willing lenders is smaller than for other types of homes. This type of mortgage lending is a niche market and lenders will be less experienced with these loans than they would other types of mortgages.
This is because Grade I listed buildings have unique restrictions placed upon them designed to preserve what makes them unique, and the lender will need to carefully consider the implications of these. This could include specialist maintenance or upkeep requirements that could mean significant costs.
What if my Grade I property generates an income?
Some Grade I listed buildings remain in active use and these have additional complications when it comes to deciding whether to apply for a commercial or residential mortgage. If the property is primarily used for commercial reasons, you will need to apply for a commercial mortgage rather than a residential one.
Should I buy a Grade I listed building?
Although owning a Grade I listed building may be your dream, it's not necessarily shared by everyone. This means it could be harder to sell in the future.
Grade I listed buildings have unique restrictions because of their heritage status. The fact that grade I listed buildings are so protected against changes makes them inherently less "liquid" than standard residential properties. This makes Grade I listed properties more difficult to sell and they may need specialist marketing, potentially adding costs that the lender will take into consideration when deciding whether or not to fund your Grade I listed building mortgage.
How to apply for a Grade I listed building mortgage?
Getting a Grade I listed building mortgage may be more difficult than you'd expect.
The first step is to use a broker who has experience dealing with lenders who deal with Grade I listed buildings, and this will make sure your application stands the best chance of being approved. Your specialist broker will be able to discuss the features that mean you're more likely to receive approval for your mortgage application at their recommendation.
At Teito, we work with hundreds of lenders, including those who consider lending on Grade I listed buildings, and what's more, you can manage the whole process online! This means you'll be able to get on with the important things in life, knowing that your mortgage application is being handled by our team of experts. Get started now and you could be comparing deals in minutes!
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
