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Compare Deals BTL/Second Home Over 55 Buy-to-Let Lifestyle

Canada Life Over 55 Buy-to-Let Lifestyle Rates & Details

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Compare Deals BTL/Second Home Over 55 Buy-to-Let Lifestyle

Over 55 Buy-to-Let Lifestyle

  • Type Fixed
  • Rate 5.99%
  • APR 6.13%
Incentives:
  • Free Valuation
Offers:
  • Fixed Early Repayment Charges
  • Non-Equity Release Council Standard
  • Equity Release for Landlords

Background

Canada Life entered the equity release industry following the acquisition of Retirement Advantage which completed in 2018. Prior to the take-over Retirement Advantage was formed by a re-branding of MGM Advantage in 2015, following the purchase of former equity release lender - Stonehaven Equity Release. Tracing its roots back to 1852, Retirement Advantage were a specialist in providing retirement products such as lifetime mortgages and retirement accounts.

Canada Life's range of lifetime mortgage uk plans offer a 'design-it-yourself' approach to equity release. Offering a suite of products such as lump sum, interest only lifetime mortgages and voluntary repayment schemes, they have also expanded into Buy-to-Let and Second Home equity release plans. This multi-national life office has introduced a line of products to be used by landlords.

The suite of landlord lifetime mortgages offered is the first of its kind to hit the market since the New Life Buy-To-Let equity release plans introduced many years ago. These allowed landlords to use equity release products on homes that are rented out on a Assured Shorthold Tenancy Agreement. In this unique Buy-to-Let equity release plan, homeowners can capitalize on the benefits of equity release schemes, even if they are not living in the home.

The Landlord Over 55 Buy-To-Let Options provide homeowners with a one-time lump sum payment. With this featured plan - Buy-to-Let Lifestyle Option, no payments are required, and interest accrues as it would with a traditional roll-up lifetime mortgage. The interest is added to the loan each month over the lifetime of the loan and only needs to be repaid upon death of the homeowner.

Eligibility

The minimum loan amount allowed with the Landlord Over 55 Buy-To-Let Options product is £10,000 with the maximum being £750,000. The minimum age is just 55 and the maximum is 90 years of age. If two homeowners are borrowing jointly, the youngest borrower must be 90 years old, or younger.

The property value range eligible for the Canada Life Buy-to-Let (BTL) equity release is £70,000 upto a height of £6 million. However, properties with a valuation above £6 million can still be reviewed individually. To qualify the property must also be located in England, Wales, or Scotland. Please call Freephone 0800 678 5955 for your personalised Landlord Equity Release Key Facts Illustration.

In order to take advantage of the Landlord Over 55 Buy-To-Let scheme, the property must be let out as a single residence on an Assured Shorthold Tenancy, of not more than 12 months duration before completion. Multiple family dwellings are not eligible.

Applications from limited or limited liability partnership companies are not permitted under Canada Life’s Buy-to-Let products. A number of tenancies are also not permitted including companies, University, Housing Associations, students, Council, family members, tenants without the right to rent, DSS tenants, or tenants with diplomatic immunity.

The property owners should make sure that if they are required to have a license to let their property, they are able to provide a copy of that license during the application process. Additionally, Canada Life's solicitors will need sight of approved certificates for gas & electricity to evidence they have been safety checked.

Under the Buy-to-Let equity release product range, the loan-to-values start from 14% at age 55, and ends at 39% of the property value for ages over 80. These are lower lending percentages than the standard Canada Life equity release product range, but represents the additional risk involved with buy-to-let lending.

Features

Landlords can apply for more than one Buy-to-Let equity release mortgage with Canada Life and can even hold more than one at the same time.

The early repayment charges are favourable for landlords with them being fixed for 8 years of the loan, as well as any additional borrowing taken in the future. For years 0-5, the early repayment charge is 5%. For years 6-8, the charge is 3% and there is no early repayment charge for years 9 and above.

Additional borrowing is allowed with the Landlord Buy-To-Let Options products and approval for such is dependent upon the criteria at the time of that separate application. The minimum amount allowed under additional borrowing is £4,000 and there is no completion fee applied.

Although Canada Life are members of the Equity Release Council (ERC), this Buy-to-Let Lifestyle Mortgage is not covered by the ERC. Nevertheless, they have still included the important protection afforded by the No Negative Equity Guarantee.

Options

With the Over 55 Buy-To-Let Options, the landlord doesn’t need to make any payments toward the interest charged on the buy-to-let mortgage. Instead, the interest is rolled-up and added to the existing loan balance. So, this product is most attractive to those property owners who want a lump sum and not have any repayments that could affect their monthly budget. Partial payments can be made on this Lifestyle BTL version, however an early repayment charge may apply.

The Canada Life Buy-to-Let options are ideal for homeowners who own one or more Buy-to-Let properties, and still want to take advantage of an equity release scheme to raise capital for whatever purpose. These could be for reasons of mitigating capital gains tax, by not having to sell a rental property, but instead releasing equity to fund other projects.

Additionally, buy-to-let landlords may wish to clear an existing interest-only mortgage, where no endowment or suitable repayment vehicle now exists. Again, rather than having to sell the rental property, a buy-to-let equity release could be used to remortgage the property, thus maintaining the rental income for retirement.

Landlord equity release could also be used to mitigate inheritance tax. As the mortgage debt rolls-up over time it potentially reduces the net value of the estate, however, rental income can still be remain, again supporting retirement lifestyle.

Other uses can include using the Canada Life Over 55 Buy-To-Let Lifestyle plan to assist with long term care funding, part of a divorce settlement and many more besides.
Our local Equity Release Supermarket advisers are on hand to help discuss and advise on the potential benefits of the buy-to-let equity release plans from Canada Life.

To obtain further information or to request a quotation on the Canada Life Over 55 Buy-To-Let Lifestyle Options Scheme, please contact the Equity Release Supermarket team on Freephone 0800 678 5955 today.

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