Will subsidence make it hard for us to obtain an equity release mortgage?

Q My husband and I are looking to a lifetime mortgage equity-release scheme to boost our retirement income, but will the fact that our property has suffered from subsidence get in the way of our plans?

A The very nature of equity-release borrowers - mature homeowners who have lived in their property for some years - means many of the homes from which would-be policyholders seek to unlock capital have problems or are of unusual construction.

If you have not had your subsidence problems dealt with yet, then you are likely to have difficulties securing any kind of mortgage against your home, not just a lifetime mortgage.

The first thing you should do is speak to your buildings insurer to see if it will meet the costs of the work needed to correct the problem. Only after this has been settled should you start to pay for advice from either solicitors or financial advisers about equity release.

Dean Mirfin, of specialist independent adviser Key Retirement Solutions, says: 'Before we would ask anyone in this situation to pay for advice on equity release we would put the case, ideally with a structural engineer's report, before a number of providers for their feedback.

'As you might expect many of the homes from which owners seek to release equity have had some kind of structural issue in the past, as they are typically older properties. Most providers decide whether to lend on a case by case basis.'

Key Retirement Solutions 0800 064 7075, www.keyrs.co.uk