LV Equity Release
If you are an older home owner you may have been considering an equity release plan such as those offered by LV.
Equity release lets you get access to some of your home’s value without the need to relocate or downsize, the money released can be used however you like, whether you want it for a new car or home improvements or to just supplement your pension.
Equity release is not the right choice for everyone and it will reduce how much you can leave behind in your will. We offer a service which puts you in touch with an equity release specialist who: will offer you friendly and helpful advice and can give you no obligation equity release quotes.
There are two types of equity release available.
A lifetime mortgage works by taking out a loan for a percentage of your home’s value. Instead of making regular repayments on it the loan is repaid along with any interest through the sale of your home when you die or move into a care home.
There are three types of lifetime mortgage:
- Roll up – This type of loan is completely paid off through the eventual sale off your home, interest collected on it is compounded however so it can accumulate quickly increasing the amount ultimately repaid.
- Interest only – With this option the original sum borrowed is repaid still through the eventual sale of your home but you can make monthly payments on the interest reducing the amount paid through the house sale.
- Fixed rate – Unlike the other two types of lifetime mortgage a fixed rate plan does not incur any interest rates, instead you agree with the lender during your application on the amount that will be repaid when the property is eventually sold.
If the amount of money owed becomes greater than the value of your home then your estate could be charged unless your plan carries a ‘no negative equity guarantee’ which all Equity Release Council registered plans do. This guarantee means that you will never have to repay more than the amount your home sells for, even if this is less than you originally borrowed.
The alternative to a lifetime mortgage is home reversion. In this type of plan you sell your home or a portion of it to a reversion company or individual for less than its market value. In return they will pay you a one off lump-sum or provide you with regular income payments and guarantee you the right to continue living in the property, they will not sell it until you either die or move into a residential care home.
Some home reversion plans ask you to make discounted monthly rent payments, others will let you live in the property for free.
Is equity release the right decision for you?
Equity release is not right for everyone and it will affect what you can pass on to your beneficiaries. When deciding if equity release is suitable for you and your family it is important to consider all of your options due to the range of different products on the market, LV equity release is just one of many. To find out more about the different types of equity release simply click on the link and fill in the quick form and an equity release specialist will get back to you with free, no obligation quotes and advice.