Types of equity release

There are two main types of equity release scheme:

You can either take out a loan against the value of the property. In most cases, these don’t usually require any repayments until the property is sold. This is known as a lifetime mortgage.
You can sell all or part of your property known as a home reversion plan in exchange for a lease for life and a cash lump sum.

Choosing the most suitable scheme will depend on a number of considerations, including:

How much equity needs to be released.
The value of the property.
What the need is, for example a cash lump sum.
The age of the homeowner.

How much, if any, the homeowner wants to leave as an inheritance.
Whether prepared to give up full ownership of their home.

Points to consider:

Releasing cash from your home will reduce the value of your estate and may affect your entitlement to state benefits.
Think carefully before securing other debts against your property.
If you’re not required to make repayments, the loan plus interest can grow very quickly.

Our lifetime mortgage products

At LV= we know that your home is very important to you. That’s why our lifetime mortgages are designed to be clear and straightforward.

Lifetime Mortgage – lump sum

If you need to release equity for a specific expense such as home improvements or to pay university fees, it may be better to borrow a one off lump sum without agreeing a maximum loan.

Find out more about the lump sum Lifetime Mortgage

Flexible Lifetime Mortgage

Specifically designed for people who wish to release some equity from their home now and expect to want to borrow more in the future.

Find out more about the Flexible Lifetime Mortgage

Alternatives to a lifetime mortgage

Whatever your particular reason for wanting extra cash, remember lifetime mortgages are not right for everyone, so before you go ahead it’s important to have considered the alternatives.

Options could include:

Selling your home and buying a less expensive property. Although this may mean you moving to a different area or having a little less space, and paying the moving costs, your new home could be mortgage free.
Using savings or other investments.
Checking that you are claiming all the state benefits that you’re entitled to.

Your equity release specialist will help you consider these and other alternatives.

Types of equity release comparison

The table below will help you understand the differences between an LV= Lifetime Mortgage and an LV= Flexible Lifetime Mortgage.

	Lifetime Mortgage	Flexible Lifetime Mortgage
Tax-free cash lump sum
Borrow from £10,000 upwards
Interest compounded annually (not monthly as in many other plans)
Loan set aside for you to drawdown from as and when you choose to
Interest charged on money you release
Typically no monthly repayments
Interest is repaid from the final sale proceeds of the property
Retain full ownership of your home
‘No negative equity’ guarantee
Plan can be transferred if you move house
Able to release further funds in the future

Please read the policy information for more details – or speak to one of the ERA specialist advisers, who will help you make the best decision for you.

This is an equity release plan. To understand the features and risks ask for a personalised illustration.

ERA provides advice on a limited range of specially selected equity release plans which includes the LV= range of lifetime mortgages. Unless you decide to go ahead, their service is completely free of charge, as ERA’s typical advice fee of 1.5% of the amount released would only be payable on completion of a plan.

Call ERA today for more information on how equity release can help you

Call us

Speak to an adviser

You can phone Equity Release Assured
Speak to a specialist adviser for more information on equity release products:

0800 202 8116

9am - 5.30pm Monday to Friday

We may record and / or monitor calls for training and audit purposes.

If you already have an equity release plan please call:

0800 028 8974
8.30am - 5.30pm Monday to Friday

We may record and/or monitor calls for training and audit purposes.

Things to consider

Equity Release Council

Being members of The Equity Release Council, we're dedicated to the protection of planholders and the promotion of Safe Home Income Plans (SHIP) guaranteeing a no negative equity.

Why choose LV=

A retirement provider you can trust established in 1843.

Winner of Best Lifetime Mortgage Lender at the Mortgage Finance Gazette Awards 2013

Product information

Unlocking your capital
Enjoy a brighter tomorrow

View more product information

Get advice

Speak to one of the ERA advisers to find out more about equity release.

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