LV=, once the Liverpool Independent Legal Victoria Burial Society, was established in 1843. William Fenton and a group of friends formed the financial company to help people save for funeral costs. Today their products have changed significantly and include equity release schemes including lifetime mortgages. While the products have evolved, customer service and competitive rates are still a part of the services provided.
LV= Equity Release Lifetime Mortgage is a lump sum mortgage provided by this society. It provides homeowners with a one-off payment and can be used for anything the client wishes.
Criteria of the LV= Equity Release Option
A single payment is made to the homeowner without monthly payments being required. The interest rate on LV= Equity Release Lump Sum Lifetime Mortgage is fixed for life. Single applicants are required to be 60 years of age, as is the youngest applicant of a joint application. The minimum property value is set at £70,000.
The minimum lump sum payment provided is £15,000. This withdrawal limit is based on age and property value. A larger lump sum may be awarded if the property value is large enough and the age supports a bigger pay-out.
A no negative equity clause is built into the contract as per Equity Release Council requirements to ensure the roll-up interest and capital balance does not exceed the property value.
Unique Features of this Lump Sum Mortgage
This lump sum lifetime mortgage can be used on the main residence or holiday home of an applicant. If it is used for a second home there is a 10% reduction on loan to value percentages with the minimum limit unchanged from the main residence lump sum offer.
Repayment is made when the homeowner(s) die, sell the property, or move into residential care. If only one partner moves out the loan does not have to be repaid. LV= provides an early repayment choice for the living partner in which there is no early repayment charge, even if the repayment occurs within the first 3 years of the loan application completion.
However, if early repayment occurs because the homeowner(s) wish to repay the loan, sell the home, or want to make payments there is a repayment charge for the first 10 years. The first 5 years is subject to a 5% fee, while the next 5 years is at 3% of the value.
LV= Equity Release Incentives
LV= Equity Release Lifetime mortgage incentives are a free valuation of the property up to £500,000 in value.