LV Equity Release Reviews
- Award winning Equity Release and retirement services provider
- Interest is compounded annually, not monthly as with many other plans
- One of the few equity release providers that also lend against second homes in the UK
Once you have read the LV Review, you could make a comparison from other providers and as a starting point use the equity release calculator to see how much cash you could release from your home.
Try the Equity Release Calculator
This Equity Release review focuses on LV or Liverpool Victoria to give them their full title.
LV= are a leading financial services provider with over 5.8 million customers who have purchased one or more of the insurance, investment and retirement solutions and products they offer.
They have been specialising in equity release since 2002, are regulated by the Financial Conduct Authority and also members of the Equity Release Council; so you can be reassured that they have a ‘no negative equity guarantee’, as well as complying with the rest of the Equity Release Council’s Rules and Principles.
In addition LV= have been awarded the following for their equity release and retirement services:
- Moneyfacts Equity Release 2016 - 5 star award for Equity Release Services for their Flexible Lifetime Mortgage
- Gold Standard Awards 2015 – award for retirement services
- YouGov Awards – Most recommended insurer
- Financial Adviser Service Awards 2015 – award for outstanding achievement
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.
Are you eligible for LV Equity Release?
To be eligible for one of LV’s equity release schemes, you need to meet all of the following conditions:
- Between the ages of 65 and 95
- Own property worth £70,000 or more – any existing mortgage would need to be repaid as part of the equity release scheme
- The property is in mainland England, Scotland or Wales (including the Isle of Wight and Anglesey)
- Your property is a freehold house, bungalow or flat (leasehold may be accepted however the lease needs to have between 70 to 90 years remaining dependant on your age)
- Your property is in good condition, well maintained and built of conventional bricks and mortar (other types of build may be considered)
- You can continue to live in your home for as long as you want providing you meet the LV terms and conditions which includes keeping adequate building insurance, ensuring the property is in a good state of repair and obtaining permission from LV= before allowing another person to occupy any part of your home.
- Any partner you are living with would need to be named on the deeds and your lifetime mortgage application.
- You can sell your home and either transfer the lifetime mortgage (subject to the terms and conditions) or repay the outstanding mortgage.
- You can add someone to the LV lifetime mortgage as long as they comply with the lending criteria
- If you choose to repay your lifetime mortgage within the first 10 years you will be charged an early repayment fee.
- The interest charged on the LV equity release schemes is compounded annually and not monthly as it is with some plans offered by other equity release providers.
- LV= is one of the few equity release providers who also cover second homes in the UK