Canada Life Over 55 Buy-to-Let Lifestyle
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Canada Life Over 55 Buy-to-Let Lifestyle Review
Over 55 Buy-to-Let Lifestyle Key Details
- Free Valuation
- Non-Equity Release Council Standard
- Equity Release for Landlords
I think you’ll agree with me when I say:
It’s REALLY hard to choose the best equity release scheme with all the choices available.
Or is it?
Is the Canada Life Over 55 Buy-to-Let Lifestyle, equity release scheme the best?
Don’t let your equity release dream become a nightmare!
Luckily, we’re here to guide you on the ins and outs of equity release, as you deserve only the best.
However, it’s important to remember that not all plans are suited to each individual. You need to look for one that will serve your home, your lifestyle, and the reason why you’re considering equity release in the first place.
As leading experts in the field, we’ve delved into hours of research, unpacked all the equity release plans on the market (we’ve reviewed over 250 schemes!), and discovered the best in the business.
What’s Equity Release?
An equity release mortgage (see What’s Equity Release?) is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care.
We’ve summed up the most important information about the topic in this quick video.
Who Are Canada Life?
New kids on the block make confident play within the equity release market.
With a ‘design-it-yourself’ approach to equity release, newly formed Canada Life offers a refreshing suite of products to qualifying homeowners and investors.
Enjoy lump sum, interest only lifetime mortgages, voluntary repayment schemes, Buy-to-Let (BTL) and Second Home equity release plans. Benefit more by adding on extra’s such as cashback, or drawdown facilities and couple this with an 8-year fixed early repayment charge.
Canada Life entered the equity release industry in 2018 following the acquisition of Retirement Advantage, a specialist in providing retirement products such as lifetime mortgages and retirement accounts with roots as far back as 1852. Prior to take-over Retirement Advantage was formed by a re-branding of MGM Advantage in 2015, following the purchase of former equity release lender – Stonehaven Equity Release.
This combination of experience, confidence and innovation makes Canada Life a serious lender in today’s equity release marketplace.
Eligibility & Requirements
The Landlord Over 55 Buy-To-Let Options program allows for a minimum loan amount of £10,000 and a maximum loan amount of £750,000. The minimum age is only 55, while the maximum age is 90. If two homeowners borrow jointly, the youngest borrower must be 90 years old or younger.
To qualify for the Landlord Over 55 Buy-To-Let program, the property must be rented out as a single home on an Assured Shorthold Tenancy for a period of no more than 12 months prior to completion. Multiple-family homes are ineligible.
Applications from limited liability corporations or limited liability partnership businesses are not accepted for Canada Life’s Buy-to-Let products. Companies, universities, housing associations, students, council, family members, renters without the right to rent, DSS tenants, or tenants with diplomatic immunity are also not authorized.
Property owners should ensure that if a license is necessary to rent out their property, they may produce a copy of that license during the application process. Furthermore, Canada Life’s solicitors will want sight of authorized certificates for gas and electricity to demonstrate that they have been safety examined.
Loan-to-values under the Buy-to-Let equity release program range range from 19 percent at age 55 to 44 percent of the property value at age 80. These are smaller lending percentages than the regular Canada Life equity release product range, but they reflect the added risk of buy-to-let lending.
Minimum Property Valuation
The property value range that is eligible for the Canada Life Buy-to-Let (BTL) equity release is £70,000 to £6 million. Properties worth more than £6 million, on the other hand, can still be examined separately.
Property Location Requirements
The property must also be based in England, Wales, or Scotland to qualify.
Landlords can apply for and hold several Buy-to-Let equity release mortgages with Canada Life at the same time.
The early repayment rates are advantageous for landlords since they are set for the whole 8-year term of the loan, as well as any extra borrowing done in the future. The early repayment penalty is 5% for years 0-5. The fee is 3% for years 6-8, and there is no early repayment charge for years 9 and above.
Additional borrowing is permitted with the Landlord Buy-To-Let Options products, and approval is subject to the conditions in effect at the time of that separate application. The lowest amount that may be borrowed under extra borrowing is £4,000, and there is no finishing charge.
Equity Release Council Status
Despite the fact that Canada Life is a member of the Equity Release Council (ERC), this Buy-to-Let Lifestyle Mortgage is not covered by the ERC. Nonetheless, they have incorporated the critical safeguard provided by the No Negative Equity Guarantee.
The landlord is not required to make any payments toward the interest paid on the buy-to-let mortgage while using the Over 55 Buy-To-Let Options. Instead, the interest is compounded and added to the loan sum. As a result, this program is most appealing to property owners who desire a flat amount and no repayments that would influence their monthly budget. Partial payments on this Lifestyle BTL version are permitted, however an early repayment fee may apply.
The Canada Life Buy-to-Let choices are perfect for homeowners who own one or more Buy-to-Let homes and wish to use an equity release strategy to raise cash for any reason. These might be for tax reasons, such as not having to sell a rental property and instead releasing equity to fund other initiatives.
Furthermore, buy-to-let landlords may desire to pay down an existing interest-only mortgage if no endowment or other repayment vehicle is available. Again, rather of selling the rental property, a buy-to-let equity release may be used to refinance it, preserving the rental income for retirement.
Landlord equity release might potentially be utilized to reduce estate taxes. As mortgage debt accumulates over time, it may lower the net worth of the estate; nevertheless, rental income can still be retained, therefore maintaining the retirement lifestyle.
Other applications include utilizing the Canada Life Over 55 Buy-To-Let Lifestyle plan to help with long-term care funds, as part of a divorce settlement, and a variety of other things.
Our local Equity Release Supermarket advisers are available to discuss and advise on the possible advantages of Canada Life’s buy-to-let equity release plans.
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Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.