Freephone 0800 678 5955
Freephone 0800 678 5955

LV= Lump Sum Plus Rates & Details

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Lump Sum Plus

  • Type Fixed
  • Rate 3.52%
  • APR 3.70%
Incentives:
  • Free Valuation
  • Free Application
Offers:
  • Second/Holiday Home Plan
  • Fixed Early Repayment Charges
  • 3-Year NO ERC Feature
  • 10%pa Voluntary Payment Allowance
  • Downsizing Protection Feature

Background

LV= is the brand name of Liverpool Victoria which exists as a mutual for the benefit of its members, not shareholders. Formed in 1843 in Liverpool to meet the financial needs of working class families, LV= have grown significantly by acquiring other mutuals and societies.

LV= offer a suite of equity release plans including drawdown and lump sum lifetime mortgages which are available on a main residence, but also second homes and holiday homes. Traditional in its nature, LV= offer steadfast plans that provide guarantees that most other equity release schemes don't include. Therefore, if elements of security with regards to repayments, low rates or permanence of access to future funds is required, then LV= Equity Release are a company to be considered.

The Liverpool Victoria Lump Sum Plus plan can be taken out on a second or holiday home with certain restrictions as detailed below.

Eligibility

The LV= Second Home Lifetime Mortgage is a traditional lump sum lifetime mortgage offering a competitive interest rate and a tax-free cash amount to help fund in-retirement expenditures. No repayments are required to be repaid back to LV=, thus the interest will normally compound for the lifetime of the mortgage.

The minimum property valuation applicable on the LV= Second/Holiday Home Lump Sum+ plan is £70,000 with no upper maximum amount of borrowing. However LV= may reduce loan-to-values for properties valued above £1.5m. Please contact us directly for properties valued above this figure on Freephone 0800 678 5955.

For the property to qualify with LV's underwriting it must be located in England, Wales and Scotland. LV=, again uniquely can offer their equity release schemes on not only a main residence, but also holiday homes and 2nd homes in the UK.

This second home must be available for the sole occupancy of the applicant, or let out for no more than four weeks at a time. The property must also be used by the applicant for a minimum of four weeks every year. Whilst the property should not have any prominent signage, LV= may consider some advertisement on a site such as AirBnB, or similar.

Should the second/holiday home be situated within close proximity to the applicant’s main residence, then LV= may not accept the property. Contact us directly if the 2nd home is in the same postcode area as your main residence on Freephone 0800 678 5955.

If the LV= Lump Sum+ plan is acceptable on a second home or holiday property, then LV= will reduce their standard Lump Sum+ loan-to-value (LTV) figure by 10%. Therefore, if the standard LTV at age 72 was 37%, then on holiday and 2nd homes, the maximum equity release that could be borrowed would be 27% of the property value.

LV='s Lump Sum Lifetime Mortgage on 2nd homes is available on both single and joint life basis, with a minimum age of youngest homeowner being 60 with a maximum age of 95 for entry onto their plans.

To start a equity release mortgage with LV=, the minimum initial amount that can be taken is £10,000 with a maximum loan amount of £1m. Meanwhile, the maximum property value accepted by LV= is £1.5 million. Please contact Equity Release Supermarket on 0800 678 5955 for verification of whether your 2nd property qualifies with LV=.

Features

The LV= Lump Sum Plus scheme is a one-off lump sum lifetime mortgage that offers homeowners an opportunity to withdraw a capital amount from their 2nd or holiday home for immediate use on any planned expenditures.

The plan comes in three scales; Max, Standard and Lite. They all refer to the amount they can release. The LV= Max version loans the highest lump sum, but subsequently comes with the highest interest rate. Conversely, the LV= Lite plan has the lowest loan-to-value, but comes with the lowest interest rate.

Interest is charged annually on the LV= Second Home plans with loan-to-values starting at 15% for homeowners aged 60, rising to 45% at age 90.

An LV= Lump Sum+ mortgage scheme is suitable for homeowners needing a specific cash lump sum from the outset, with no likelihood of requiring additional funds in the future. By opting for the Lump Sum Plus plan, rather than drawdown scheme, the homeowner receives a more competitively priced interest rate.

LV= offer a free valuation upto £1,500,000. However, for properties valued higher this can be referred to LV=, hence please contact the Equity Release Supermarket team directly on Freephone 0800 678 5955 for properties over this figure.

This LV= Lump Sum Plus Plan comes with a fixed lifetime equity release interest rate on the initial cash amount which is charged annually. The interest then rolls-up for the rest of the plan's duration, at the rate set at the commencement of the plan.

For homeowner's uncertain on their future at the property and maybe considering downsizing in the future, LV= have added a potential early repayment charge waiver called 'Downsizing Protection'. Should any homeowner move to a new house after 5 years from commencement of the LV= mortgage, and the property they intend to purchase cannot be ported across - doesn't meet LV's lending criteria, then the loan can be repaid with NO penalty.

LV= are members of the Equity Release Council, hence their plans incorporate the no-negative equity guarantee. This means that following sale of the property - on death or long term care, the beneficiaries cannot personably be left with a debt owing to the equity release company.

For joint applicants there is an added early repayment which benefits the survivor of any joint life plan. Upon the death or long term care of one applicant, the surviving partner has the option to repay this lifetime mortgage back to LV= within 3 years of this event, with NO penalty.

Early repayment charges are always an important feature of any equity release mortgage. LV= are one of the few companies to offer a fixed early repayment charge strategy. For the 1st 5 years of the loan period, LV= would charge 5% of the capital repaid, the next 5 years it would be 3%, with NO penalty after the 10th year.

Therefore, if a fixed penalty early repayment charge is required, with low interest rate and high maximum lending ceiling, then LV='s Second/Holiday Home Lump Sum+ Lifetime Mortgage should be considered.

Options

This LV= Lifetime Mortgage comes with a Voluntary repayment option, enabling homeowners the option of making 10% per annum repayments each year with NO penalty. The 10% allowance is based on the original loan amount and the minimum repayment amount being £1,000.

The voluntary repayment facility kicks in after 12 months from inception and enables homeowners to manage their future balance in the manner they wish for themselves and their beneficiaries.

Additional borrowing is still available should extra capital be required for personal use in the future. LV= allow two further revaluations in this regard with no charge for the first two additional borrowing applications.

*the rate quoted is based on the LV= Lump Sum Plus Lite plan.
**£0 application fee on applications until 30th April on loans over £50,000

To obtain further information or to request a quotation on the LV= Lump Sum+ Second Home Lifetime Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 678 5955 today.

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