If you’re a Landlord aged over 55, you may be interested in one of Retirement Advantage’s Over 55 Buy-to-Let Options.

Release cash tax free from Buy-to-Let properties

The Over 55 Buy-to-Let Options are secured on a Buy-to-Let property.  They allow Landlords to release cash from their property tax free, leaving their entire portfolio intact.  You can choose to make capital and interest payments or let the interest roll-up.  There are no affordability assessments on any of the options.

There are two options in the product range:

  • Over 55 Buy-to-Let Lifestyle

You will receive a one-off lump sum and no payments are due – the interest is added to the loan each month for the life of the loan.

  • Over 55 Buy-to-Let Voluntary Select

You can choose to repay up to 10% of the loan each year, without incurring an early repayment charge.   An unlimited number of voluntary contributions can be made, with a minimum contribution amount of £50.  Contributions can be made by cheque, BACs transfer, debit card or standing order.

The Over 55 Buy-to-Let Options product features:

  • The interest rate is fixed from the outset.
  • You can release between £10,000 and £750,000
  • Fixed early repayment charges. The Over 55 Buy-to-Let Options have fixed early repayment charges.  They are 5% of the initial loan amount for the first five years, 3% for years 5 to 8, and 0% from year 9 onwards.
  • No affordability assessments or minimum income requirements. Whether you choose to make capital and interest payments or simply let the interest roll-up, they won’t carry out any affordability assessments or impose minimum income requirements.
  • The mortgage has an open-ended term, so you won’t need to refinance at a later date.
  • You benefit from a fixed interest rate for life.
  • You can take advantage of a free valuation.

 How do they define a Buy-to-Let property?

A Buy-to-Let property is a property that:

  • The owner does not occupy
  • Is let out with an Assured Shorthold Tenancy (AST) in place

 Regulation

The Over 55 Buy-to-Let Options from Retirement Advantage (RA) are mortgages.

There are two different types of mortgages for Buy-to-Let properties:

  • ‘Buy-to-Let’ is used to describe most mortgages on properties that are let out – these are not regulated by the FCA.
  • ‘Consumer Buy-to-Let’ is used to describe mortgages on properties that have been inherited or were previously the owners’ main residence. These are regulated by the FCA.

The Buy-to-Let Options offered can be used for either scenario. RA have chosen to present the information provided about these products in the same format as their regulated products.

You won’t benefit from the protection of the FCA conduct rules or the Financial Services Compensation Scheme (FSCS), as the products are not regulated. This product range is also not covered by all the Equity Release Council product standards as it is not a lifetime mortgage and it is not secured on the borrowers’ main residence. However, a No Negative Equity Guarantee is still offered.

[Source: Retirement Advantage, 17 July 2018]

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