Canada Life Second Home Voluntary Select
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Canada Life Second Home Voluntary Select Review
Second Home Voluntary Select Key Details
- Free Valuation
- Non-Equity Release Council Standards
- Release Equity on Second Home
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 Second Home 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.
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 minimum loan amount available through the Canada Life Second Home Voluntary Select Options is £10,000, with a maximum loan amount of £750,000. The minimum age is only 55, while the maximum age is 90. If two homeowners borrow together, the youngest borrower must be 90 years old or younger.
The property value range suitable for the Canada Life 2nd Home equity release plan is £70,000 to £6 million. Properties worth more than £6 million, on the other hand, can still be examined separately. The property must also be located in England, Wales, or Scotland to qualify. For your personalized Canada Life Second Home Voluntary Select Key Facts Illustration, please contact Freephone 0800 802 1051.
To take advantage of their Second Home plan, the property must be made available for the owner and their family’s sole occupation. When utilized for this reason, Canada Life requires that the property be used by the family for at least four weeks each year.
Canada Life will enable the property to be rented out for a maximum of four weeks at a time. To qualify, there must be no formal agreements or Assured Shorthold Tenancies in existence.
Furthermore, the second house must not be promoted for rental reasons, such as through an estate agency, even if it is done online.
The loan-to-values for the 2nd Home equity release product range begin at 19 percent at age 55 and finish at 44 percent of the property value at ages 80-90. These are smaller lending percentages than the normal Canada Life equity release product range, but they reflect the added risk of lending on second residences.
One of two products offered in this series of second house lifetime mortgages is the Canada Life 2nd Home Voluntary Select Options plan. It allows homeowners to pay up to 10% of the initial loan amount each year without incurring any early repayment penalties. The smallest payment amount permitted is £50, and the maximum payment amount permitted is the maximum 10% limit.
Homeowners can make their first payment as soon as the day after the loan is closed, and they can make an infinite number of installments each year. Payments can be made in a number of methods, including bank transfer, check, standing order, or debit card over the phone. Homeowners are not penalized if they do not meet the annual payment allowance of 10%.
The early repayment charges (ERCs) are favorable, since they are set for the whole loan term of 8 years, 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 under the Voluntary Select Options plan, and approval is contingent on meeting the requirements at the time of this separate application. The lowest amount that may be borrowed under extra borrowing is £4,000, and there is no finishing charge.
Despite the fact that Canada Life is a member of the Equity Release Council (ERC), this Second Home Voluntary Select Mortgage does not fulfill all of the product requirements. This only applies if the homeowner does not have the right to live in the property for the rest of his or her life or moves into long-term care, which isn’t a big deal for a second house. More significantly, the owner retains the value of the No Negative Equity Guarantee, set lifetime interest rate, and independent appraisals.
The Over 55 Second Home Voluntary Select Options are best suited for any homeowner who desires some flexibility in selecting whether or not to pay down their lifetime mortgage debt. It is an excellent choice for any homeowner who is concerned about interest roll-up since it allows the homeowner some control over their lifetime mortgage balance.
The Canada Life Second Home plans are suited for homeowners who own one or more properties and want to use an equity release strategy to generate cash for any reason. These might be for the purpose of avoiding capital gains tax by not selling their second home and instead releasing equity to fund other initiatives.
Furthermore, second homeowners may desire to pay off an existing interest-only mortgage if no endowment or other repayment vehicle is available. Again, rather of selling the house, a second/holiday home equity release may be utilized to refinance the property, allowing them to keep ownership of a vacation home until their retirement.
Second, the discharge of home equity might be utilized to reduce inheritance tax. As mortgage debt accumulates over time, it has the potential to diminish the net worth of the estate.
Other applications include using the Canada Life Second Home Voluntary Select to help with long-term care expenses, as part of a divorce settlement, and a variety of others.
Our local Equity Release Supermarket advisers are available to discuss and advise on the possible benefits of Canada Life’s 2nd Home lifetime mortgage products.
To find out more about the Canada Life Second Home Voluntary Select Scheme or to receive a quote, call the team now.
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