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 Lifestyle Lump Sum Max

Our Lifestyle Lump Sum Max is a fixed rate lifetime mortgage that pays a one-off lump sum to your client. No repayments are normally required as it is designed to be repaid in full, usually from the sale of the property, when the client dies or moves into long term care, subject to our terms and conditions. It includes some flexible features and options to help meet individual needs.

Easy to understand

  • Tax free cash for your client to spend as they choose, although this may affect their tax position or eligibility for means tested benefits.
  • No repayments during loan term under normal circumstances – see our terms and conditions
  • No negative equity guarantee.
  • Interest rates guaranteed for 14 weeks when application is received.

Great options

  • Voluntary partial repayment option – after the first 12 months clients have the option to repay 10% of the amount borrowed each year, in up to 4 installments, without early repayment charges. This is only available to customers who take out their lifetime mortgage on or after the 28th April 2014.
  • Clients may be able to transfer their lifetime mortgage to a new home as long as it meets our lending criteria at that time. If the value of the new property is less, some of the loan and interest that has accrued will need to be repaid.
  • Optional inheritance guarantee to safeguard a percentage of sale price for beneficiaries – see our equity release customer brochure
  • Your client may be able to apply to borrow more in the future. We don’t guarantee this and it will depend on our lending criteria at that time.

Enhanced rates

  • Clients could benefit from lower rates of interest or a higher loan to value depending on health and lifestyle.
Criteria Minimum / Maximum Additional information

Age limits

Minimum age: 55

If joint, both must be at least 55

Maximum age: none

-

Property value

Minimum value: £75,000

For flats and maisonettes, 85% of the property's value is used when calculating the loan

Maximum value: none

-

Loan values

Minimum loan: £15,000

-

Maximum loan: £600,000

Larger loans are considered on request

Loan to value (LTV) single applicant

Minimum LTV 20.5%

  • Minimum age 55
  • For more information about our LTVs including possible enhanced rates which depend on the client's health and lifestyle read our Building your Business guide

Maximum LTV 52%

  • Age 85+
  • For more information about our LTVs including possible enhanced rates which depend on the client's health and lifestyle read our Building your Business guide
Loan to value (LTV) joint applications Minimum LTV 19.5%
  • Minimum age 55 (based on the youngest person)
  • For more information about our LTVs including possible enhanced rates which depend on the client's health and lifestyle read our Building your Business guide
Maximum LTV 51%
  • Age 85+ (based on the youngest person)
  • For more information about our LTVs including possible enhanced rates which depend on the client's health and lifestyle read our Building your Business guide

Residency

-

The property must be in England, Wales, Scotland or Northern Ireland (and cannot be in the Channel Islands or Isle of Man). The property must be their main residence and must meet our lending criteria. If the property is leasehold, the sum of the years remaining on the lease plus the age of the youngest borrower must equal at least 160 years.

Voluntary partial repayments

Minimum repayment: £500 per payment

Each year clients can repay a maximum of 10% of the amount they’ve borrowed. Up to four repayments can be made each year. Repayments can only be made after the policy has been held for one year and if there has been no additional borrowing in the previous 12 months. The payment will be applied to the mortgage on the day it is received and the amount on which we charge compound interest will reduce.

This is a voluntary option. Please note that if your client makes a voluntary partial repayment they can't take any additional borrowing until 12 months after the date the repayment was made.

This is only available to customers who applied for their lifetime mortgage on or after the 28th April 2014.

Maximum repayment: 10% of the overall load value 

Early repayment charges (ERC)

Minimum ERC: no payment

Clients may face an early repayment charge if they wish to repay the loan in full before they die or move into long term care. The amount charged will apply to each amount the client has borrowed. There are situations where an early repayment charge will not apply, for more information see our terms and conditions.

No early repayment charge on first death only applies to customers who apply for their lifetime mortgage on or after the 28th April 2014.

Maximum ERC: 25% of each amount borrowed




For full details of all our charges please see our Tariff of Charges.

Type of charge Details

Interest

Calculated on a daily basis and compounded annually.

Arrangement fee

Will be provided in the Key Features Illustration

Early repayment

Early repayment charges may apply if the loan is fully repaid for any reason other than those stated in our exemptions list. This could be up to 25% of the loan value including any additional borrowing. There may also be an administration fee - for full details please see the Tariff of Charges.

Legal fees

Your client is responsible for paying their own legal fees. Aviva's legal costs and any disbursements are covered by the arrangement fee. Full details of these costs can be found in the Tariff of Charges.

Commission

2.25% of the initial loan
Type of charge Estimated property value Notes

Valuation fee

£75,000 to £150,000

£153

£150,001 to £300,000

£210

£300,001 to £500,000

£295

£500,001 to £750,000

£480

£750,001 to £1,000,000

£685

£1,000,001 to £1,100,000

£920

£1,100,001 to £1,200,000

£1,120

£1,200,001 to £1,500,000

£1,270

£1,500,001 to £2,000,000

£1,420

Over £2,000,000

Please contact your usual Aviva contact to find out more

Re-valuation fee

If your clients application takes longer than six months to process we will require another property valuation. These charges can be seen in our Tariff of Charges booklet.

Re-inspection fee

£60

If the home needs to be re-inspected – for example after essential repairs have been carried out.

Additional borrowing Please refer to our Additional borrowing brochure and Tariff of Charges for applications on or after 28th April 2014

Will be provided in the Key Features Illustration


Start by reading our Build your business with equity release guide for help with this market.

In order to advise on equity release you must obtain an ER1 certificate. For more information about the certificate, and to download the learning material, go to the Chartered Insurance Institute's website.

Alternatively, you can contact them on:
020 8989 8464
Fax:020 8530 3052

Our retirement support team can help you with:

  • Quotes
  • Literature
  • Sales ideas
  • Management of new business issues
  • Full sales support function on-site
  • They’ll also be pleased to send you an agency request form.

View our contact details to find the right member of staff to meet your needs.

It’s been designed for clients who:

  • Are homeowners aged 55 or over who need to raise capital.
  • Have no mortgage or only a small mortgage on their property. This mortgage must be repaid from the proceeds of the loan.
  • Have a minimum property value of £75,000.
  • Need to borrow at least £15,000 (the minimum available under our lending criteria).
  • Require a fixed rate of interest throughout the term of the lifetime mortgage.
  • Live in the UK (except the Channel Islands or the Isle of Man).

It’s unlikely to be suitable for clients who:

  • Have savings or other money they could use first.
  • Prefer to sell all or part of their home rather than take a loan.
  • Already have a large mortgage or loan outstanding on their property.
  • Would prefer to sell the property and downsize.

What does your client need to think about?

  • Involvement of their family in the decision.
  • Impact on their state and welfare benefits.
  • Impact on their tax position.
  • Impact on any inheritance they may leave.
  • If they are prepared to commit to this for life as potential early repayment charges could be expensive.
  • If a couple, whether both parties understand the commitment.
  • The costs involved, particularly the build up of interest throughout the life of the mortgage.

Possible alternatives:

  • Sell or use other assets.
  • Take a standard secured or unsecured loan, if they can afford repayments.
  • Sell their home and downsize.
  • Adjust their standard of living.
  • Move in with children.
  • Borrow money from family.
  • Sell part or all of their home using a home reversion plan.
  • Local authority or other type of grant.

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WA11004 08/2017