Listing grades and lender appetite
In England and Wales, buildings are listed at Grade I, Grade II* or Grade II. Scotland uses categories A, B and C, and Northern Ireland uses grades A, B+, B1 and B2. Most listed homes are Grade II or the equivalent.
Lender appetite follows the grade. On our panel, several lenders consider Grade II property, sometimes with a slightly lower loan to value, while Grade I is commonly excluded and higher grades are considered case by case by underwriters. One lender on our panel excludes listed buildings entirely from a fast-track product. Checking this before applying avoids a decline after the valuation.
Works and consent
Listed building consent is needed for any works that affect the character of a listed building, inside or out. That can include replacing windows, removing walls, changing fireplaces or altering roofs. Carrying out unauthorised works is a criminal offence, and the owner can be required to reverse them, which is why lenders take consent seriously.
If the bridge is funding works, lenders will want to see the consent, a schedule of works prepared with the listing in mind and a contractor experienced in historic buildings. Specialist materials and methods, such as lime mortar and traditional joinery, cost more and take longer, so a realistic budget and contingency matter.
Valuation and the exit
Valuers will consider the condition of the building, the cost of maintaining it and the depth of the market for similar listed property. Unauthorised past alterations, structural movement or damp can affect both value and saleability.
If the exit is a refinance, check that the mortgage lender will accept the property and its grade. Some mainstream lenders are comfortable with Grade II homes in good condition but cautious about higher grades or unusual construction. If the exit is a sale, allow for a potentially longer marketing period.
Listed homes and regulated bridging
Many listed properties are bought as homes, for example where a buyer needs to complete before selling their existing house. If the borrower is an individual or the trustees of a trust, and the property is, or will be, lived in by you or a close family member, the loan is a regulated mortgage contract with additional protections. We will tell you at the outset if that applies and how your case will be handled.
Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
We compare lenders on how they treat the grade, the works and the exit, then approach those that fit. Instant Quotes lets you indicate a listed building and shows lenders that consider it, as a starting point. Final terms depend on each lender's valuation and checks.
