Aviva is known for providing quality equity release products to the market such as their enhanced lifetime mortgage plan. For over five years, Aviva has helped over 150,000 people secure their retirement future with proper equity release mortgages. They provide two standard products: Lifestyle Flexi Option and Lump Sum Max Plan. Both of these lifetime mortgage schemes are available for enhancement from the lenders Aviva, for which the enhancement works in different ways.

Simply put, the Aviva Enhanced equity release primarily provides a higher maximum equity release lump sum over & above the standard Lifestyle Flexi & Lump Sum Max plans. It is awarded based on the ill-health of the youngest homeowner and property valuation.

However, Aviva uniquely have turned the tables on the enhanced theory in that it isn’t necessarily the over 55’s looking for the maximum release of equity that will benefit from life impairment. Should the homeowner qualify for an Aviva enhanced lifetime mortgage and the maximum is not required, then Aviva will offer the homeowner a lower interest rate than increasing the maximum facility available.

The Qualification Process
Aviva requires a completed enhanced lifestyle questionnaire to be submitted with their equity release application form. This questionnaire is more involved than those from More2Life or Partnership. It is analysed by Aviva underwriters to determine if an enhancement could apply to the individual by asking a series of health & lifestyle questions.

It is dependent on whether the health issue(s) a homeowner suffers from is persistent or chronic. A doctor’s report is also part of the qualification process. It needs to confirm the information the homeowner has provided in the questionnaire about their condition. If it does then the homeowner qualifies for a greater lump sum than a standard lump sum or the flexible option with interest rate reduction from Aviva.

Additional qualifications require the homeowner to be at least 55 with a minimum value of £75,000 in their property. The home must be located in Northern Ireland, Scotland, Wales, or England. The youngest homeowner must be the one who has ill-health and be at least 55 years of age. Additionally, it is this homeowner that must qualify for any ill health enhancement Aviva offers on their standard lifetime mortgage plans.

Key Features for Aviva Enhanced Equity Release
The minimum equity release amount for the Aviva enhanced product is £10,000. This amount or a higher amount is provided based on the property value and age of the person calculated to determine if the compounding interest will create a negative equity situation. To be within compliance of the Equity Release Council Code of Conduct and Financial Conduct Authority regulations this mortgage must have a no negative equity guarantee.

An optional feature to add to the Aviva enhanced lifetime mortgage is inheritance protection. This will safeguard a certain percentage of the homeowner’s property from being included in the calculation for the maximum lump sum. It also reduces the maximum lump sum a homeowner will receive to ensure the inheritance portion is protected against interest accrual.

Examples of How to use the Enhanced Equity Release Scheme
Homeowners can secure an equity release with enhanced lump sum for many reasons. The cash is tax free without any stipulations on how it is used. Homeowners may decide to repay an existing mortgage such as a balloon payment on an interest only mortgage, or to make their retirement more comfortable. It can also be used to consolidate other debt; to cover monthly expenses when income and pensions are not enough; and for health treatments not covered by the NHS or even to gift to their children & family before they eventual die.

Determining if this is the right Product for You
Aviva is not able to offer advice on the products they sell. The company always recommends any equity release business is conducted by qualified & trusted equity release advisers to conduct sales through their company. These enhanced equity release advisers can help you determine whether the Aviva enhanced lifetime mortgage is right for you, or not.

Incentives to Choose Aviva Plan
Aviva provides a free valuation offer plus a maximum cash back amount of upto £1,000. Aviva do tailor the equity release interest rate to the match their risk return. Therefore, the lower the loan amount to the property value the better potentially the interest rate will be.

Certain equity release brokers have access to an Aviva Flexi Tool which enables the adviser to manufacture an Aviva product which has more benefits & lower interest rate than generic financial advisers. Therefore, it is always advisable to shop around for the best Aviva Equity Release interest rates & terms.