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.