Homes full of clutter have emerged as one of the top three reasons why equity release cases are rejected, according to a report.

A cluttered property can make it “extremely difficult for a surveyor to ascertain the integrity of the structure”, said a survey from later life lender More2life.

An overstuffed home was the third most common reason homeowners failed to obtain equity release funds, up from six last year.

A flat roof covering 25 per cent of the property, with has a greater risk of springing leaks, was the number one reason, up from number two 12 months ago.

While proximity to commercial property came in second, falling from top spot last year.

Preston-based More2life points to the pandemic as a reason why clutter has jumped three places to become one of the most common causes that leads to homeowners being turned down for an equity release loan.

It said before the health crisis excessive clutter would have been picked up by face-to-face visits from surveyors and explained to customers.

More2life chief executive Dave Harris says that “with the pandemic restrictions and more advice than ever before being provided remotely, it has become far harder for advisers to pick up on details such as clutter or notice that something is not quite right with a structure.”

Harris adds: “An in-depth and wide-ranging discussion as part of the advice process can help – especially if any concerns are shared with the client and the lender.”

Earlier this month, More2life became the latest lender to renew physical valuations as part of its lending process.

The lender added that houses lined with asbestos has fallen out of the top ten as historic health issues around this material are less common after being stripped out of homes over many years. However, flat roofs and proximity to commercial properties remain key issues.

Harris says: “While the vast majority of cases move from offer to completion smoothly, some issues with properties that will impact the final resale value mean that they are more likely to be declined. It is vital that advisers know that properties with large flat roofs near commercial premises with foam insulation may struggle to be accepted so they can manage their clients’ expectations.”

More2life, with more than £4bn loans under management, drew this data from lending cases it has conducted over the last two years.