LV Drawdown+ Lite
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LV Drawdown+ Lite Review
Drawdown+ Lite Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
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
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.
- Detailed information about the Drawdown+ Lite scheme.
- Whether this plan could be right for you and your family.
- How low the current interest rates are for the Drawdown+ Lite product.
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?
How Much Can You Release?
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Most popular reasons for releasing equity
- Add to your retirement income.
- Pay off your credit debts or loans.
- Gifting money to family. (E.g. helping children pay a deposit on their first house)
- Paying off an existing debt.
- Going on that dream holiday.
- Replacing your car with the one you've always wanted.
- Making home & garden improvements.
Who Are LV?
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.
LV's Other Equity Release Schemes
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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?
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