The LV Equity Release options
LV= offer two Lifetime Mortgage plans that we will focus on in this Equity Release review – their Flexible Lifetime Mortgage and their Lifetime Mortgage Lump Sum+ .
With all LV equity release schemes the amount you can borrow depends on your age and the value of your property and they insist that all equity release applicants seek advice from a financial adviser who is qualified to give advice on equity release schemes.
What is a Lifetime Mortgage?
Lifetime Mortgage Lump Sum Plus
With the Lump Sum + the money released ranges from 25% of the property value for 60 year olds up to 55% for those aged between 90 to 95. You can borrow a lump sum in a single payment from £10,000 which means the fees and interest rates are usually a little lower when compared to LV’s flexible lifetime mortgage.
Future borrowing may be available but this will depend on your circumstances and the terms and conditions of the equity release scheme at that time.
Flexible Lifetime Mortgage
As the names suggests, this type of LV lifetime Mortgage gives you greater flexibility. You can release an agreed amount of equity from your home now, as well as setting up an amount that you may want to borrow from in the future.
The minimum you can borrow is £10,000 and the most they will agree as the total maximum loan is three times your initial loan or if lower, the highest amount they will lend against the value of your property.
The maximum loan that is available to you can be drawn from over a period of 15 years, with minimal withdrawals of £2,000 allowed. The one restriction here is that you can only make one withdrawal a year. Also keep in mind that the rate of interest charged on each amount borrowed will be based on the rates at that time and not the rate that was agreed with your initial loan.
For the LV= flexible lifetime mortgage the amount you can borrow ranges from 20% of the value of the property for 60 years olds through to a maximum of 50% for customers between the ages of 90-95.
You may be able to increase your maximum loan if the value of your property has increased, or you move to another house that is worth more and meets LV’s equity release lending criteria.
As previously mentioned, LV= equity release schemes come with a ‘No Negative Equity Guarantee’ which means you can be sure that the lifetime mortgage plans included in this review will never cost more than the price your property is sold for.