Retirement Advantage, previously Stonehaven Equity Release, has always been known for its innovative retirement products. That trend has continued with the introduction of a new series of products for homeowners who are looking to release equity from their second home. With the Second Home Options line of equity release products, homeowners can secure a lifetime mortgage on their second home, or vacation home.
There is a total of three products available in this 2nd Home series. Homeowners are able to choose whether they want to pay interest on their loan, interest and capital, or just let the interest roll-up.
In order to qualify for these 2nd Home products, the home must be defined as a second home under Retirement Advantage’s definition. So, it must be a home that is available for the sole occupancy of the owner. If it is let-out at all, it cannot be let-out for more than 4 weeks at a time. Additionally, the home must be used by the homeowner for a minimum of 4 weeks per year.
The home must be valued between a minimum of £70,000 and upto a maximum valuation of £6 million, though exceptions are possible for a home that is valued above the maximum threshold of £6 million. Please call 0800 678 5955
for your personalised Second Home Equity Release Key Facts Illustration.
The property must be located in England, Wales or Scotland. Additionally, there cannot be an Assured Shorthold Tenancy’s in place with the property and it cannot be advertised anywhere, such as through an online search engine or an agency.
To take advance of these products, the homeowner must be between the ages of 55 and 90 and if borrowing jointly, the youngest borrower must be 90 years old, or younger.
One of the three options available with the Second Home products is the Lifestyle Option. With this product the homeowner receives a one-time capital lump sum and does not need to make any payments during the lifetime of the loan. The interest effectively gets added to the loan every month for the lifetime of the loan & compounds monthly. Homeowners are under no obligation to make any payments with the Lifestyle Option.
With each product in the Second Home line, the loan amounts available range from a minimum release of £10,000 upto a maximum equity release lump sum of £750,000.
Similar to other products offered by Retirement Advantage, the early repayment charges for the Second Home Options are fixed for the first 8 years following the completion of the initial loan. For years 0-5, the early repayment charge is 5%. For years 6-8, the early repayment charge is 3% and for years 9 and over, there is no charge.
The Loan-to-Value’s with the Second Home Lifestyle Option starts at 9% at age 55 and go up to 34% for ages 80-90.
The series of Second Home Options are most suitable for homeowners who own more than one home, but still want to be able to take advantage of the benefits of a lifetime mortgage. The Lifestyle Option offers homeowners the opportunity to take advantage of a lifetime mortgage product without having to make any payments on the loan. Because of that reason, this product is most suited for homeowners who don’t want to, or cannot make any regular payments toward their loan balance. This is an ideal product for any homeowner who is on a fixed income or is unsure of their income from month to month.
There is additional borrowing available with the Second Home Options. The fixed early repayment charges apply to that additional borrowing as well. If the homeowner does want to take advantage of additional borrowing, their approval will be contingent upon the lending criteria applied at the time of that application.
The maximum amount allowed for additional borrowing is £4,000. The homeowner is not allowed to switch to a new product and the maximum amount that can be borrowed is the maximum amount available within the product range. The homeowner must stay within their original product’s LTV range. There is no completion fee imposed on additional borrowing.
To obtain further information or to request a quotation on the Retirement Advantage Second Home Lifestyle Lifetime Mortgage, please contact the Equity Release Supermarket team on 0800 678 5955