The LV= Lump Sum Plus equity release mortgage is a one-off lifetime mortgage scheme that offers homeowners an opportunity to withdraw a capital amount for immediate use on their planned expenditures. Interest is charged annually on the home equity withdrawn and LTV's start at 25% for homeowners aged 60, rising to 55% at age 90.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 plan, rather than drawdown scheme, the homeowner receives a much lower interest rate.
LV= offer Equity Release Supermarket a free valuation upto £1,500,000. However, for properties valued higher this can be referred to LV= in certain circumstances and discussed further (call 0800 678 5955). This single lump sum mortgage plan comes with a fixed lifetime equity release interest rate on the initial cash amount and is then charged interest annually. 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 & maybe considering downsizing in the future, LV= have added a potential early repayment charge waiver called 'Downsizing Protection'. Should any homeowner with an LV= Lump Sum+ equity release plan move to a new house after 5 years from commencement of the mortgage, & the property they intend to purchase cannot be ported across as it 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 be left with a debt owing to the equity release company.
*For joint applicants there is an added protection feature for the remaining survivor of the plan. Should one homeowner die or move into care, 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 specific penalty charge is required, low interest rate and high maximum lending ceiling, then LV='s Lump Sum+ Lifetime Mortgage should be considered.