LV Drawdown+ Lite

Are You Considering the Drawdown+ Lite Scheme? What are the Eligibility Requirements, Features, Interest Rates & Scheme Options? Discover If This Equity Release Plan Is For You.

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LV Drawdown+ Lite Review

Drawdown+ Lite Key Details

Type Rate APR
LV Fixed 3.03% 3.10%

Scheme Incentives

  • Free Valuation
  • Free Application

Scheme Offers

  • 3-Year No Early Repayment Charge
  • 10%pa Partial Payments with No ERC
  • 5-Year Downsizing Protection Feature
LV Drawdown+ Lite

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 LV Drawdown+ Lite, equity release scheme the best?

Don’t let your equity release dream become a nightmare!

Luckily, we’re here to guide you on the in’s and out’s of equity release, as you deserve only the best.

However, 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.

Could the LV Drawdown+ Lite be the right equity release plan for you?
We’re here to help you:
LV is one of the leading equity release providers on the market and might just be the answer you’ve been looking for.
Can you truly go wrong with LV?
Let’s find out!

What's Equity Release?

We've summed up the most important information about the topic in this quick video.

An equity release mortgage 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. The homeowner’s family usually pays back the cash released, and the interest incurred, from the sale of the home in question.

Learn More: What’s Equity Release?

How Does Equity Release Work?

Equity release is available for individuals or couples over 55, with the youngest homeowner’s age determining the amount of equity that can be released. It is important to note that some equity release schemes may require the homeowner to be 60 or older.

Learn More: How Does Equity Release Work?

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Most popular reasons for releasing equity

Who Are LV?

With almost five million clients, Liverpool Victoria has been business as LV= since May 2007.1  It provides a number of insurance and retirement-related services. With 5,700 workers, LV= is also the UK’s biggest friendly society.
Learn more about the various Liverpool Victoria equity release schemes..

Scheme Background

Get a 1st home equity release plan with LV=, a.k.a Liverpool Victoria. This established mutual formed in 1845 to meet the financial needs of working-class families in Liverpool. LV= has grown significantly over the years acquiring and still today their main aim is to benefit you, their members.

LV= offers a range of equity release plans, including drawdown lifetime mortgages and lump sum plans.

The LV= Drawdown+ range comes with a suite of products ranging from Drawdown+ Lite through to the highest loan-to-value product, Drawdown+ Platinum Plus. The Drawdown+ product that is most suitable to you will depend upon the amount and size of the drawdown facility required. Speak to a consultant about the plan that benefits you.

Eligibility & Requirements

The LV= Drawdown+ Lite Lifetime Mortgage plan combines a competitive interest rate with a drawdown facility that allows future access to a tax-free cash reserve. Because no repayments are required to be made to LV=, the balance will inevitably roll-up and compound yearly. Payment alternatives are available, however, if control over the future balance is required.

Minimum Property Valuation

The LV= Drawdown+ Lite Lifetime Mortgage has a minimum property valuation of £100000 and a maximum valuation of £5 million.

Property Location Requirements

The property must be the primary residence and must be in England, Wales, or Scotland.

Single vs Joint

LV=’s Flexible Lifetime Mortgage is offered on both a single and joint life basis, with a minimum age of 60 and a maximum age of 95 at the time of application.

Minimum Release

The minimum initial loan amount to begin a drawdown equity release loan with LV= is £10000. The loan-to-value ratio is used to determine the total loan (initial lump amount + drawdown facility). This is determined by your age, property worth, and the Drawdown+ version under consideration. The Drawdown+ Lite has a maximum borrowing amount of £1500000.

Scheme Features

The LV= Drawdown+ Lite Lifetime Mortgage is a drawdown plan that provides homeowners with an overall cash facility from which they can take an initial capital amount for immediate usage, while any unused cash element is retained by the lender. There is no interest payable on these cash reserve facility funds; only any capital removed is charged interest.

The LV= drawdown mortgage program is appropriate for homeowners who want a particular cash lump payment at the beginning but want to have access to a future cash pot in the future. These extra withdrawals can be made in as little as £1,500 increments and incur no additional administrative fees.

The LV= Drawdown+ Lite lifetime mortgage has an annual fixed lifetime equity release interest rate on the original lump amount. Future cash withdrawals would be subject to the interest rate in effect at the time of the withdrawal.

LV= has included a potential early repayment fee waiver dubbed ‘Downsizing Protection’ for homeowners who are unsure about their future at the property and may be considering downsizing in the future. If a homeowner with an LV= Drawdown+ Lite equity release plan moves to a new house after 5 years, and the property they want to buy cannot be transferred across because it does not match LV’s lending standards, the loan can be returned with no penalty.

Valuation Features

LV Drawdown Lite Lifetime Plan updates are still in the works. We will give an update soon.

Early Repayment Feature

Early repayment penalties are a standard part of every equity release mortgage. LV= is one of the few firms that provides a set early repayment charge approach. For the first five years of the loan duration, LV= would charge 5% of the returned capital, then 3% for the next five years, with NO penalty after the tenth year. As a result, if a specific penalty charge is necessary, LV=’s Drawdown+ Lite Lifetime Mortgage should be examined once more.

Equity Release Council Status

Because LV= is a member of the Equity Release Council, their programs include the no-negative equity guarantee. This implies that if the property is sold due to death or long-term care, the beneficiaries cannot be left with a debt to the equity release business.

Joint Application Features

LV=’s Flexible Lifetime Mortgage is offered on both a single and joint life basis, with a minimum age of 60 and a maximum age of 95 at the time of application.

There is an additional protection element for the plan’s surviving survivor for joint applicants. If one of the homeowners dies or moves into care, the remaining spouse has the option to return the lifetime mortgage to LV= with no penalty within three years of the incident.

Scheme Options

Based on the initial loan amount, this LV= Drawdown+ Lite Lifetime Mortgage will allow voluntary repayments of up to 10% each year with no penalty. Payments may begin when the plan has been in effect for 12 months, with a maximum of six payments permitted each mortgage year. This is subject to a minimum payment of £250, with the stipulation that the remaining loan balance is larger than £10000. After a partial payment is completed, no withdrawals from the reserve are authorized for three months.

If the whole cash reserve facility is depleted, more borrowing is possible. This is subject to a minimum loan of £2000 and will necessitate a new borrowing application, as well as valuation and application costs.

Repayment Options

Based on the initial loan amount, this LV= Drawdown+ Lite Lifetime Mortgage will allow voluntary repayments of up to 10% each year with no penalty.

Inheritance Protection

LV Drawdown Lite Lifetime Plan updates are still in the works. We will give an update soon.

Application Fees

LV Drawdown Lite Lifetime Plan updates are still in the works. We will give an update soon.

Cashback Options

LV Drawdown Lite Lifetime Plan updates are still in the works. We will give an update soon.

Footnotes

LV Drawdown Lite Lifetime Plan updates are still in the works. We will give an update soon.

Editor’s Rating: 4.85

LV's Other Equity Release Schemes

Are you looking for a specific equity release scheme?

These are some of the schemes offered by LV.

Not what you're looking for?

Have a look at all the equity release schemes available on the market, with our easy to use table!

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

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.

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HOW MUCH EQUITY CAN YOU RELEASE?

Most people are using equity release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.

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Written by
Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
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Written by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Written by
Katherine Read
Financial Planning Reporter

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
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Written by
Nicola Date
Writer & Financial Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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Equity Release Calculator

Value of Your Home?

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As Featured In
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