Canada Life, previously known as Stonehaven Equity Release or Retirement Advantage, has maintained a reputation for providing high level, customisable equity release products. Continuing that trend, Canada Life has now introduced a range of products never been available in the equity release marketplace before.
The Landlord Options range of products is now available for Buy-to-Let landlords who want to be able to let out their property while also still capitalizing on an equity release scheme.
The Voluntary Payment Buy-to-Let Equity Release Plan is one of the two products available in this range. It allows landlords to pay upto 10% of their initial loan amount each year without incurring an early repayment charge. Potential loan amounts with this product range from £10,000 to £750,000. The LTV range for the Voluntary Select Option starts at 9% at age 55 and goes up to 34% for ages 80-90.
The minimum payment amount that can be made is £50 and the maximum is the 10% allowance. The first payment can be made as soon as on the day following the loan’s completion. There is no limit on the number of payments that can be made and payments can be made through a cheque, debit card, bank transfer, or standing order. There is no penalty imposed if the homeowner does not pay the full 10%.
Some applications and tenancies are not allowed with this series of products.
Applications submitted by limited or limited liability partnerships are not accepted. Tenancies that are not allowable include those with companies, councils, students, family members, housing associations, tenants without the right to rent, tenants with diplomatic immunity, and DSS tenants.
Homeowners are eligible to apply for additional borrowing with all of the products in Canada Life’s landlord options. With additional borrowing, the homeowner must stay within their original product loan-to-value range and is not allowed to switch to a new product.
The minimum amount for additional borrowing is £4,000 and eligibility for the additional borrowing is determined by the lending criteria applied at the time of the additional application. No completion fee is incurred with additional borrowing.
The property must have a valuation between £70,000 and £6 million. Properties that exceed the maximum threshold are still allowed consideration on a case-specific basis. The property must be located in Scotland, Wales, or Ireland.
The property must be let out under an Assured Shorthold Tenancy, or AST, that is for 12 months or fewer, before the loan completion. This rule applies to all three products in the Landlord Options series.
For the Voluntary Select option, the homeowner must be between ages 55 and 90 to be eligible. If borrowing jointly, the youngest borrower in the couple must be 90 years old or younger.
All products in the Landlord Equity Release range are ideal for homeowners who want to let out their properties but also want the benefits of taking part in an equity release scheme.
The Canada Life Voluntary Payment Over 55 BTL Mortgage is most suitable for those homeowners who want to control the amount of interest accruing on their loan. With the ability to pay up to 10% of the initial loan amount every year, landlords can limit their loan balance without incurring any early repayment charges.
This product proves most suitable for those landlords who are concerned with interest roll-up and are also in a position to make payments. Taking advantage of the flexible payment options allow landlords to better control their loan balance and the interest accruing on their loan.
To obtain further information or to request a quotation on the Canada Life Landlord Voluntary Select Buy-To-Let Mortgage, please contact the Retirement Mortgages team on 0800 678 5159 today.