Canada Life Over 55 Landlord Voluntary Select
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How Much Can You Release? 👇
Canada Life Over 55 Landlord Voluntary Select Scheme Review
Over 55 Landlord Voluntary Select Key Details
- Free Valuation
- Fixed Early Repayment Charges
- 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 Landlord Voluntary Select, 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.
Let’s find out!
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.
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. Canada Life is recognized for its flexible early repayment charges, which apply to the Over 55 BTL choices as well.
Early repayment penalties for landlord option products are fixed for 8 years after the loan is finished. The early payback penalty is 5% for years 0-5 of the loan. It is 3% for years 6-8, and there is no early repayment fee for years 9 and above. The Voluntary Select Option allows homeowners to pay up to 10% of the initial loan amount each year without incurring any early repayment penalties.
Homeowners who use Canada Life’s landlord alternatives may be able to apply for extra borrowing in the future. The homeowner must just stay inside the LTV range of their initial package and cannot convert to a new product. The minimum extra borrowing amount is £4,000, and there is no finishing charge.
The lowest payment amount for the Voluntary Select Option is £50, and the maximum payment amount is the 10% limit each year. The first payment may be made with this option on the day after the loan is completed, and there is no limit to the amount of payments that can be made.
Payments can be made by check, bank transfer, standing order, or debit card. Furthermore, homeowners are not punished if they do not pay their entire yearly payment allotment of 10%.
The Loan-to-Value range for the Landlord Voluntary Select Option begins at 14 percent at age 55 and increases to 39 percent at age 80-90.
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 lump amount and the option of making future repayments.
The Voluntary Select Option is best suited for homeowners who want to contribute to their loan each year without fear of suffering early repayment penalties. This program is best suited for homeowners who are concerned about interest roll-up but can still afford to make payments.
The entire range of Landlord Over 55 Buy-To-Let solutions provided by Canada Life are appropriate for homeowners who wish to let out their properties but also want the flexibility of capitalising on an equity release program to aid them at, or in-retirement.
Canada Life's Other Equity Release Schemes
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