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 & societies.
LV= offer a suite of equity release plans which include a drawdown lifetime mortgages and lump sum plans which are available on a main residence but also 2nd 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 or permanence of access to future funds is required, then LV= Equity Release are a company to be considered.
The LV= Lump Sum+ Lifetime Mortgage Plan offers a very competitive interest rate and provides a tax-free cash amount to help fund in-retirement expenditures. No repayments are required to be repaid back to LV=.
The minimum property valuation applicable on the LV= Lump Sum+ Lifetime Mortgage is £70,000 with no upper maximum, however LV= may reduce loan-to-values for properties valued above £1.5m. Please contact us directly for properties valued above this figure on 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 will consider holiday homes and 2nd homes in the UK. If they do accept such a property, LV= will reduce the standard loan-to-value (LTV) figure by 10%. Therefore, if based on a client’s age the standard LTV was 40%, then on holiday and 2nd homes it would be 30% of the property value.
LV=’s Lump Sum Lifetime Mortgage 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 of £1m. For properties valued over £1 million please contact us for verification.
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 Interest is charged annually on the home equity withdrawn and LTV’s start at 25% for homeowners aged 60, rising to 55% at age 90.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.
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. The voluntary repayment facility kicks in after 12 months from inception & enables homeowners to manage their future balance in the manner they wish for themselves & their beneficiaries. One payment each year is allowed & the allowance cannot be carried over to the following year.
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.
To obtain further information or to request a quotation on the LV= Lump Sum+ Lifetime Mortgage, please contact the Equity Release Supermarket team on 0800 678 5955