Liverpool Victoria Equity Release Review

Now more than ever, more and more people are considering releasing equity from their home. In response to this, more lenders and companies are providing equity release schemes.

As a result, customers are feeling more confused than ever when it comes to which plans they should choose, which is why the team at Equity Release Warehouse has carried out the Liverpool Victoria equity release review.

What’s Equity Release?

People have been releasing equity from their homes for decades. Equity release is a tool used by homeowners aged 55 or over to release the equity that has built up in their homes over the years [1].

Equity release is a great option for anyone who has lived in their home for a number of years and has paid off a lot of mortgage.

An individual would release equity from their home if they need a helping hand when it comes to their finances, or if they simply wanted a more relaxing and financially stable retirement [1].

One of the best draws to equity release is that you do not have to ever move home in order to gain access to this money. You get to remain living in your home until you pass away, and are encouraged to do so. You do not have to pay rent on the property, either.

The second best thing about equity release is that you do not have to repay the equity release loan whilst you are still alive. In fact, you only have to repay the loan after you pass away or alternatively move into a care home [1].

However, taking out an equity release loan does come with certain risks. For example, if you opt for equity release in the UK, then as with any other type of mortgage, you will be charged interest.

The only difference is that with an equity release loan, clients are never forced to pay off the interest on their loan.

This means that as a result, a lot of people do not repay their interest. When this happens, the interest on their loan will turn into compound interest. This means that the overall cost of your loan will increase.

Equity release loans are only ever paid off when you pass away or move into long-term care. When this happens, your loved ones will have to sell your house and pay off the loan and interest on the loan with the proceeds of the sale. Whatever is left will go to them as inheritance.

Across the UK, there are lots of different lenders who are able to cater for most people. However, there are only two main types of equity release loans, which are known as lifetime mortgages and home reversion plans.

1. Lifetime mortgages

Lifetime mortgages are extremely popular in the UK, and are offered by almost all equity release lenders. With a lifetime mortgage you are not required to repay anything until after you pass away, and you do not have to move house when you take out an equity release loan.

The lifetime mortgage will be repaid once you pass away or move into a care home.

2. Home reversion plans

Home reversion plans are the second most popular option across the UK. They are not as popular as lifetime mortgages because home reversion plans involve selling off a percentage of your house to the equity release lender.

This means that although you will be able to remain living in your house, when you come to sell the property a percentage of the house proceedings will go to the lender, reducing the amount of inheritance you are able to leave your loved ones.

If you are considering equity release and want more information on either lifetime mortgages or home reversion plans, then speak to a member of our team at Equity Release Council.

Who is Liverpool Victoria?

During our Liverpool Victoria equity release review, our team at Equity Release Warehouse found that Liverpool Victoria (also known as LV) provides a range of services including home and life insurance, retirement and pension advice, income protection and equity release.

Our Liverpool Victoria equity release review found that Liverpool Victoria has been operating since 1943 and now has over 5 million customers across the UK. In fact, Liverpool Victoria has now been offering equity release schemes for almost 20 years.

Liverpool Victoria only offers equity release through their partnership with Age Partnership.

Does Liverpool Victoria Offer Equity Release?

Liverpool Victoria does not offer their own equity release plans and loans. Instead, they have decided to partner with other companies to help to provide you with an equity release loan.

If you do choose to release equity with one of Liverpool Victoria’s partners, then they will pay Liverpool Victoria an introductory fee if you end up releasing money with them.

How much money Liverpool Victoria gets depends on how much equity you want to release from your home and how much your home is currently worth.

If you are considering releasing equity from your home, why not speak to someone at Equity Release Warehouse, where our team of advisers will point you in the right direction when it comes to lenders and equity release plans.

Types of Equity Release Offered by Liverpool Victoria’s Partners

Below, we outline the two types of equity release offered by Liverpool Victoria Partners:

1. Lifetime Mortgage Lump Sum

Liverpool Victoria’s equity release partners offered lifetime mortgages to their clients [2]. Lifetime mortgages with Liverpool Victoria’s partners are very popular, with most people choosing the lump sum lifetime mortgage.

Lump sum equity release mortgages allow people to gain access to their equity in one large lump sum. They can use this money for things like home improvements, a holiday or to gift their money to loved ones for things like house deposits and University fees.

As with every lifetime lump sum mortgage, there is no need to make any monthly repayments to the loan. Once again, the equity will be paid off after you pass away and your family and next of kin go to sell your house.

Our Liverpool Victoria equity release review found that in order to qualify for a lump sum lifetime mortgage with one of Liverpool Victoria’s partners, you have to be aged over 55 years old. You also need to own your own home in the UK with a value of at least £70,000 [2].

You can choose to pay off some of the lump sum equity release money early, in an attempt to reduce the loan amount. However, by opting for a lump sum mortgage you might not be eligible for other means-tested benefits that you currently qualify for.

2. Lifetime Mortgage Drawdown

Liverpool Victoria and their partners also offer lifetime drawdown mortgages. With a drawdown lifetime mortgage, you are able to release money from your house in small chunks, rather than one large lump sum.

This way, you get to release the cash you need as and when you need it. This way, you only pay interest on the cash that you do release which will mean that you only have to pay interest on what you do take as and when you take it.

Once again, this money will be tax-free and you can spend it, however, you want to. You also have a lot of flexibility about how much you take out and when you take it and are allowed to continue seeking advice from your adviser throughout the entirety of your loan.

The Eligibility Criteria

If you are considering equity release, then you might be wondering what the eligibility criteria is.

Most equity release schemes across the UK have the same eligibility criteria. However, some lenders do slightly alter their qualification criteria between plans.

When it comes to Liverpool Victoria equity release plans, our Liverpool Victoria equity release review found that you have to be aged between 60 and 95 for most of their plans, and if you are applying with someone else then they will also need to be aged over 60 years old.

In order to qualify for Liverpool Victoria equity release, your house needs to be valued at least £70,000 and you need to have paid off most of your mortgage by the time it comes to applying for equity release. In addition to this, the property also needs to be freehold and not leasehold.

If your property is leasehold, then you can’t have long left on your lease in order to qualify, and the lender will take every leasehold application on a case-by-case basis.

In order to qualify for all equity release plans with Liverpool Victoria’s partners, your house must be based in the mainland UK, including Anglesey in North Wales.

If you are considering talking to Liverpool Victoria about their eligibility criteria, you should speak to a member of the Equity Release Warehouse team first, to assess the best lenders and plans for you.

How Much Do They Charge?

Most equity release loans incur a charge. This includes interest on your loan which is repayable when your next of kin sell your house after you pass away. This is the main draw to equity release for most people, as you do not have to repay anything until you pass away.

Nevertheless, there are other costs that you will have to incur such as the cost of an advisor and a solicitor.

It is worth noting that all initial advice offered by both Liverpool Victoria and Equity Release Warehouse will be completely free – meaning that you do not have to pay anything until you actually commit and take out an equity release loan.

There are other costs that you will need to consider, including the cost of a valuation. You will need to invite someone from the lender to carry out a valuation at your property, where they will assess how much your house is now worth.

They will charge you anywhere between £100 and £200 in order to do this.

During our Liverpool Victoria equity release review, we found that Liverpool Victoria charges approximately £995 to those who do choose to proceed with equity release with them, which will cover the arrangement fees.

In addition to this, you will have to pay for a solicitor to handle your equity release mortgage loan. Your solicitor will play a vital role in your equity release journey and application. They will be the main point of contact when it comes to talking to the lender, and will also write up your contract for you. In addition to this, they will also be the one to transfer the funds at the point of completion.

If you are considering releasing equity from your home then you would have bought a house in the past, which means that you will be familiar with the conveyancing process and be aware that solicitor fees can be expensive.

Solicitor fees can cost you anywhere between £1,000 and £3,000. However, this very much depends on how complicated your equity release application is and which solicitor you choose to go with.

At Equity Release Warehouse, we always advise that you shop around for the cheapest and best solicitor in your area.

At Equity Release Warehouse, we do not charge a penny for any initial advice.

So, if you are considering releasing equity from your home but are unsure whether you can afford the initial setup costs, then speak to a member of our team at Equity Release Warehouse where we can provide you with more information and put your mind at ease.

Does Liverpool Victoria Have An Equity Release Calculator?

During our Liverpool Victoria equity release review, we found that Liverpool Victoria does have their own equity release calculator which helps clients gain a better understanding of how much equity they might be able to release from their home before going to speak to an equity release adviser.

However, at Equity Release Warehouse we are keen to point out that equity release calculators are only ever able to give an approximate estimate, as they are based on limited information.

If you want an accurate idea of how much equity you are able to release from your home, then you should speak to an adviser at Equity Release Warehouse. Our useful advisers will ask you a number of questions which will all go towards working out how much equity you can release from your home.

However, if you do want to use Liverpool Victoria’s equity release calculator then you will need to have a few things ready.

For example, you will need to have some basic information about your property to hand, including the address and current estimated value of the house.

You will then need internet access to go to Liverpool Victoria’s website where you can input your personal details. Once this is done, you will need to speak to one of their advisers for an accurate idea of how much you can release.

If you are wondering how much equity you can release from your home but simply do not know where to start, then visit the Equity Release Warehouse website on www.equityreleasewarehouse.com or by ringing our helpline on 0330 058 1579 for more information and helpful advice from our advisers.

Liverpool Victoria Equity Release Review – Complaints

During our Liverpool Victoria equity release review, we took the time to look into how Liverpool Victoria deals with any complaints that come their way.

During our review, we found that Liverpool Victoria customers are able to make a formal complaint via the phone, by letter or by completing an online form via their website.

If you would like to phone Liverpool Victoria to make a complaint about their equity release plans or policy, then call them on 0800 028 8974. Alternatively, you can send them a letter to Box 2, LV=, County Gates, Bournemouth, Dorset, BH1 2NF.

Liverpool Victoria say that they welcome any genuine complaints, and that if their customers are not happy, then they are not happy either.

If you do want to make a complaint to Liverpool Victoria about their equity release plans, then they ask their customers to provide them with as much information as possible when it comes to their complaint case.

They ask you to include your full name, your address and your policy number so that they can easily identify you and your equity release loan.

However, they make it very clear that you should not send any confidential or financial information such as bank or credit card information.

During our Liverpool Victoria equity release review, we found that Liverpool Victoria has their own process when it comes to its complaints.

The first thing that Liverpool Victoria will do when they receive a complaint is to make sure that it is passed to the right and relevant person. It is also important that this person has never dealt with you before, so that they can be completely impartial.

Once your complaint is in the right hands, they will get in touch with you to explain the complaints process and also ask for any additional information that they will need to get to the bottom of your complaint swiftly and effectively.

At this stage, they will give you their name and contact details so that you know exactly who is dealing with your complaint from here on out.

Once this has happened, the individual will undergo a thorough investigation into your case and your complaint. They will deal with your complaint fairly and independently.

They will listen to your complaint thoroughly and will try to look out for any lessons learned so that Liverpool Victoria can improve their service for you and future customers.

Your adviser will then give you a written progress report on how your complaint is being handled.

It is important to understand that this process can take time, usually lasting anywhere between 8 – 12 weeks to resolve.

What Are The Advantages?

At Equity Release Warehouse, we feel passionate about the fact that equity release has helped millions of over 55’s across the UK release equity from their homes and live a better and more comfortable retirement.

However, at the same time we understand that a lot of people still feel nervous and hesitant about the idea of equity release. This is because there are a number of myths and misconceptions surrounding equity release.

However, there are an increasing number of benefits and advantages when it comes to equity release, whether you choose to release equity with Liverpool Victoria and its partners or another lender.

1. Advantages of Equity Release with Liverpool Victoria

According to Liverpool Victoria, one of the biggest advantages when it comes to equity release is the fact that all money you receive will be completely tax-free. You also get to remain living in your home until you pass away or decide to move into long-term care.

In addition to this, you do not have to repay a penny of your loan until after you pass away. You are also given the chance to repay some of the interest on your loan if you want to do so, which will reduce the overall loan amount, avoid compound interest and increase the amount of inheritance you leave your loved ones.

If your house increases in value between now and the time you pass away, then the increase will be added to the property and your loved ones will receive even more inheritance than they were expecting.

If you think that by choosing equity release you will never be able to move house in the future, then you are wrong. If you choose an equity release plan with Liverpool Victoria you are still able to move house now or in the future.

If you do want to move house in the future, then Liverpool Victoria will need to approve the new property and take it on as collateral for the loan.

2. Disadvantages of Equity Release with Liverpool Victoria

During our Liverpool Victoria equity release review, we found a number of disadvantages when it comes to choosing equity release.

For example, one of the biggest disadvantages to choosing equity release with Liverpool Victoria is that the amount of inheritance you leave your loved ones is reduced, especially if you choose not to repay the interest on your loan whilst you live.

In addition to this, by choosing a home reversion plan, you are technically selling a portion of your house to the lender, which means that you are no longer technically the owner of a part of your property.

In fact, when your loved ones sell your property after your passing, the lender will receive a percentage of the proceeds of the sale of the house.

Finally, individuals who release equity from their home, regardless of their job and income status will lose their ability to claim and receive any means-tested benefits in the future.

This means that any benefits you currently receive will stop, and you will be prevented from applying and receiving any in the future, too.

According to the National Debt line [3] if you currently receive benefits but want to release equity from your home, then you should inform the Department for Work and Pensions or your local council.

Are They Regulated?

During our Liverpool Victoria equity release review, we discovered that Liverpool Victoria is a member of the Equity Release Council [4] as well as the Financial Conduct Authority.

This means that they hold themselves to the standard of these authorities, and work by their rules. This means that all partners of Liverpool Victoria who offer equity release loans will also be a member of the ERC and FCA.

Get in Touch

At Equity Release Warehouse, we understand and appreciate that the sheer amount of equity release lenders and plans across the UK can be both confusing and intimidating to those considering equity release.

Hopefully, our Liverpool Victoria equity release review has been able to shed some light on what Liverpool Victoria offers when it comes to equity release, and whether they would be a company you would like to get in touch with.

At Equity Release Warehouse, we truly have your best interests at heart. That is why we offer free initial advice to anyone who needs it.

So, if you are considering releasing equity with Liverpool Victoria, one of their partners or any other provider, we recommend that you speak to a member of our team first.

Our team of friendly and fully qualified staff will talk you through the equity release process and different plans. They will never put any pressure on you to make a decision and will be there to lend a helping hand when you are.

If you would like to speak to one of our advisers, then give us a call on 0330 058 1579.

Alternatively, you can try our free equity release calculator by visiting our website online at www.equityreleasewarehouse.com.

References

[1] https://www.equityreleasewarehouse.com/help-centre/pay-tax-equity-release/

[2] https://www.lv.com/equity-release/drawdown

[3] https://nationaldebtline.org/fact-sheet-library/equity-release-ew/

[4] https://www.equityreleasecouncil.com/company/liverpool-victoria/