Listed buildings and period properties have great character but can be harder to mortgage and own, because of their protection, upkeep and insurance. This guide explains listed building and period property mortgages: what listing means, why mortgages can be trickier, the consents and costs involved, and how to approach buying one.
What a listed building is
A listed building is one officially recognised for its special architectural or historic interest, protected by law. In England and Wales, listings are graded: Grade I for buildings of exceptional interest, Grade II* for particularly important ones, and Grade II, the most common, for buildings of special interest. Listing means changes to the building are controlled, which affects how you can alter, repair and maintain it, and in turn how lenders view it.
Why mortgages can be trickier
Mortgages on listed buildings can be trickier because the restrictions on alterations, the often higher cost of specialist repairs, and the need for particular insurance make lenders more cautious, as our guide to non-standard construction relates. Some lenders are comfortable with listed buildings, others less so, so the choice may be narrower. Understanding these factors helps you approach a listed building purchase realistically.
Listed building consent
Altering a listed building, even in ways that would be permitted on an ordinary home, usually requires listed building consent from the local authority, and doing work without it is a criminal offence. This applies to many changes, inside and out. So owning a listed building means accepting limits on what you can do and a consent process for works, which is an important consideration before buying and for any future plans.
Repair and maintenance costs
Listed buildings often need specialist materials and craftsmanship for repairs, to preserve their character and meet the rules, which can make maintenance more expensive than for a modern home, as our guide to funding home improvements relates. Older buildings may also need more upkeep generally. Budgeting for higher, sometimes specialist, repair and maintenance costs is essential when owning a period or listed property.
Specialist insurance
Insuring a listed building usually requires specialist buildings insurance that reflects the cost of rebuilding or repairing to the required standard with appropriate materials, which is often higher than standard cover. Lenders typically require adequate buildings insurance as a condition of the mortgage. Arranging suitable specialist insurance, and understanding its cost, is an important part of buying and mortgaging a listed building.
Surveys for period properties
A thorough, often specialist, survey is especially important for listed and period properties, to assess their condition, identify issues common in older buildings, and understand the repairs they may need. A standard survey may not be enough for an old or unusual building. Investing in a detailed survey by someone experienced with period properties protects you from costly surprises and helps you buy with a clear understanding of the building.
How to approach it
To buy a listed or period home, factor in the consents, costs and insurance, get a specialist survey, and seek a lender or broker experienced with such properties, as our guide to the way mortgages work relates. Many listed buildings can be mortgaged with the right lender, but the process and ownership require more care. Going in well-informed about the responsibilities helps you enjoy the character of a period home without unwelcome surprises.
The three grades in detail
Listing grades reflect importance: Grade I covers buildings of exceptional interest, a small minority; Grade II* covers particularly important buildings of more than special interest; and Grade II, the most common by far, covers buildings of special interest warranting preservation. The grade affects how strictly changes are controlled, with higher grades more tightly protected. Knowing the grade of a building helps you understand the level of restriction and scrutiny it carries.
Living in a listed building
Living in a listed building means accepting that alterations, from windows to extensions and sometimes interior changes, are controlled and usually need consent, as our guide to home improvements relates. Many owners value the character enough to accept these limits, but they affect how you can adapt the home. Understanding what you can and cannot change easily is an important part of deciding to buy a listed property.
Energy efficiency and older homes
Listed and period homes can be less energy-efficient than modern ones, and improving them, with insulation or new windows, may be restricted by the listing, affecting running costs. Some sympathetic improvements are possible with consent. Being aware that a listed home may cost more to heat, and that efficiency upgrades can be limited, helps you budget realistically for the ongoing costs of owning a period property.
Period but unlisted homes
Not all old homes are listed; many period properties are unlisted, giving you the character without the listing restrictions, though they may still be non-standard in construction or need specialist upkeep, as our guide to non-standard construction explains. So if you love period homes but want fewer restrictions, an unlisted period property may suit, while still warranting a careful survey for the issues older buildings can have.
Reselling a listed building
Listed buildings appeal to many buyers for their character, but the restrictions, costs and narrower lending can affect resale, so the market may be more specialised. A well-maintained, attractive listed home can sell well to the right buyer, but it is worth being aware that the considerations affecting your purchase will also affect your eventual sale. Keeping the building in good order helps preserve both its character and its value.
Enjoying a period home responsibly
Owning a listed or period home is a privilege that comes with responsibilities: maintaining it sympathetically, seeking consent for works, and budgeting for specialist upkeep and insurance, as our guide to non-standard construction relates. Owners who embrace these responsibilities can enjoy a home with genuine character and history. Going in with a clear understanding of the commitments helps ensure the experience is rewarding rather than burdensome.
Approaching a listed purchase well
To buy a listed building well, research its grade and any restrictions, get a specialist survey, arrange suitable insurance, budget for higher upkeep, and use a lender or broker experienced with listed properties. With this preparation, many listed buildings can be mortgaged and enjoyed for years. The character of a period home rewards the extra care its purchase and ownership require, provided you go in fully informed about what is involved.
For those who love history and character, a listed or period home can be a wonderful place to live, and with the right survey, insurance, budgeting and lender, the practical hurdles of buying and mortgaging one are very often surmountable.
In short
Listed buildings are legally protected for their architectural or historic interest, graded I, II* or II. Mortgages can be trickier because of restrictions on alterations, higher specialist repair costs and the need for particular insurance, so the choice of lender may be narrower. Altering a listed building needs consent, and upkeep and insurance cost more. A specialist survey, suitable insurance and an experienced lender or broker all help.
Where to get help and next steps
Read our guides to non-standard construction mortgages, funding home improvements, and how mortgages work. Our guide to self-build mortgages is also worth a read. This is general information, not mortgage or financial advice.