LV= enhances equity release criteria for holiday homes
LV= has enhanced the underwriting criteria on its lifetime mortgage lump sum policy to add further flexibility for second and holiday homes.
"As people are living for longer, it is no surprise that demand is rising to release equity from property"
Holiday homes under the policy can now be rented out for up to four weeks at a time, including properties that are rented out through services such as Airbnb.
LV= says it is continuing to see an increase in customers taking up equity release, with its half year sales reaching £88 million – a rise of 66% compared to 2017.
Andrew Gilbert, head of life products at LV=, said: “At LV=, we embrace the flexibility that our customers need when preparing for retirement. As people are living for longer, it is no surprise that demand is rising to release equity from property, especially when it’s usually the largest asset that you will have in your working life.
"We strongly encourage people considering equity release to speak to a professional adviser to ensure that it is the best solution for them. It is very important to seek financial advice upon entering retirement to confirm that you are financially and emotionally ready to embark on this complex process.”
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