So what is a Lifetime Mortgage?
Lifetime Mortgages allow you to release money from your home. You can choose whether to make any interest payments throughout the life of the mortgage. The mortgage (and any interest accumulated and any charges) will be repaid at the time of your death or move into long-term care, using the cash generated from the sale of your home.
How much cash can I release?
The amount of money you can release is based on your age and property value.
The minimum loan amount is £10,000. The maximum is £750,000 in London and the South East, and £500,000 elsewhere.
Am I eligible?
As with most lending products, there are several key requirements that you will need to meet to be eligible.
The most basic requirements are:
- You must be aged between 55 and 90,
- You must own your own home,
- You must be a UK resident.
The other requirements are related to your personal circumstances and your property.
We accept single and joint applicants. Joint borrowers do not need to be married, but they must both hold full title to the property.
Your property must be in England, Scotland or Wales and must be your main residence. Some restrictions may apply over the type of property that you own. Lifetime mortgages can be taken out on a new house purchase, but it will have to comply with our lending criteria.
The minimum property value that we accept is £70,000. The maximum is £4 million in London and the South East, and £1 million elsewhere. We do accept properties which are valued above this, but they will be capped at the higher limits.
If there is a mortgage outstanding on your property then this must be repaid either before or at the start of the Stonehaven Lifetime Mortgage. The funds provided by Stonehaven can be used to clear this debt.
On application, your home should be occupied by people who hold title to the property. If your property is located in England or Wales and there is anyone else living in the property, they must seek independent legal advice and sign a legal document called a ‘Deed of Consent’. If the property is located in Scotland, your financial adviser will need to contact Stonehaven.
Here at Stonehaven we're committed to Responsible Lending. This means that if you're applying for an Interest Select Option, we will need to ensure that you're able to afford the nominated monthly interest payment. We will review your income and expenditure, and you will need to declare any loans or mortgages you have when you apply. You can read more about our responsible lending here, or alternately your financial adviser will explain what documentation you'll need to provide to us with your application form.
When you submit an application to us, you will need to pay the valuation fee upfront.
We don’t charge an application fee, but a completion fee will be payable (£650 in England and Wales, £795 in Scotland). You can choose whether you'd like to pay this at legal stage, or add it to the loan.
As a member of the Equity Release Council, we insist that you seek independent financial advice and legal advice. You will need to have face-to-face legal advice, and fees are estimated at £345 +VAT if you use a solicitor who is a member of the Equity Release Solicitor’s Alliance (ERSA). Your financial adviser will let you know how much they will charge you.
How much can be borrowed?
The equity release calculator will generate the maximum amount you can borrow for our products.Try the equity release calculator
If you have an enquiry... call Stonehaven
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