Available to clients over 60 years-old, who hold up to five buy-to-let properties, the New Life Landlord Loan has no monthly interest or capital payments on the loan, secured on residential properties in England and Wales. It is also protected by a no-negative equity guarantee ensuring clients will never owe more than the value of their property. The Landlord Loan allows investors to release equity without selling property that could incur mortgaging their main residence, or be subject to capital gains tax.
New Life Mortgages has confirmed that the loan is not repayable immediately if the borrower goes into long-term care, allowing borrowers to use the loan or rental income from the portfolio to meet the costs of care. Borrowers are also exempt from capital gains tax, as the products are treated as a loan, rather than a sale.
Peter Lucas, chief executive of New Life Mortgages, said the product design would appeal to borrowers, and was designed following intermediary feedback. He said: “The New Life Landlord Loan is an innovative way for property investors over the age of 60 years old to access funds without mortgaging their main residence. This product was developed in consultation with specialist intermediaries in investment properties and was designed to fill a gap in the market for older clients with sizeable buy-to-let property portfolios but limited cash flow.”
Dean Mirfin, business development director at Key Retirement Solutions, agreed that the product design was a good one. He commented: “The principle of the New Life Landlord Loan is a unique one and the idea is good. The only limitation it has is the number of properties it allows.”
