Legal & General Equity Release Review 2026: Plans, Rates and Key Features

By Clare Townhill

Updated 1st April 2026

Legal and General offers equity release through lifetime mortgages.

This review explains how their plans work, who may be eligible, the key features to look out for, and what to compare before you speak to an adviser.

Equity release is a big decision, and it is not right for everyone. It can reduce the value of your estate (your money and property) and may affect the benefits you receive. It is important to understand the long-term impact before you go ahead.

What is equity release?

Equity release is a way to access money from your home, usually in later life.

A lifetime mortgage is the most common type. It is a loan secured against your home.

You keep ownership of your home.

Interest is charged on the loan.

The loan is usually repaid from the sale of the property when you die or move into long-term care.

Some plans let you pay some interest as you go. Others let the interest “roll up”, meaning it is added to the loan over time.

Legal and General equity release at a glance

Legal and General equity release options

There are many different lifetime mortgage styles:

1) Interest roll-up lifetime mortgage

This is typically for people who want a lump sum or to release money over time, without making monthly repayments.

Interest is added to the loan.

The balance can grow over time because interest is charged on interest (this is called compounding).

2) Optional payment lifetime mortgage

This option is for people who want the flexibility to pay some or all of the interest, but without committing to a fixed monthly payment like a standard mortgage.

You may be able to reduce how quickly the balance grows.

You still need to understand what happens if you stop payments later on.

3) Payment term lifetime mortgage

This is described as a hybrid approach:

• You release a lump sum.
• You repay the interest for a chosen payment term.
• You repay interest until you are 75 or you retire (as stated in the article).

After that, the mortgage works like a lifetime mortgage, so any unpaid interest is added to the loan and repaid from the eventual sale of the home.

This option may appeal to people who want more control early on, but still want the “lifetime mortgage” structure later.

Eligibility

Legal and General’s eligibility points include:

You would usually need to meet all of the following:

• Age: at least 55 (or 50 for the payment term lifetime mortgage)
• Residence: the property is your main home
• Property value: over £70,000 (and £100,000 for some property types such as flats, maisonettes and ex-council properties)
• Location: England, mainland Scotland or Wales
• Construction: standard construction
• Ownership: you own the property

If you have an existing mortgage, you may still be eligible, but it normally needs to be repaid as part of the equity release process.

Eligibility and lending criteria can change, so it is always worth checking the latest requirements before relying on an example.

Key features

Interest and how it is added

Interest is calculated daily and added to the total monthly (as the article states).

Who can live in the property?

Someone can live with you, but they may need independent legal advice and may be asked to sign an occupancy-related form acknowledging the lifetime mortgage.

When the mortgage is repaid

Repayment is typically not required until you die or move into long-term care.

Optional payments can be made within the plan's terms and conditions (where available).

Early repayment

You can repay the mortgage early, but you may be charged an early repayment charge.

Moving home

You may be able to move home if the new property meets the criteria.

You may need to pay fees such as valuation, legal fees, transfer fees, plus moving costs.

You may also be asked to repay some of the loan in certain circumstances.

Staying in your home

You can remain in your home until you die or move into long-term care, as long as you keep to the terms and conditions.

What’s Included and What’s Not Included

What’s usually included:

• A lifetime mortgage secured against your home
• The ability to remain in your home (subject to the terms)
• The Equity Release Council no negative equity guarantee (as part of the ERC standards)
• Lump sum release
• Release in stages (drawdown style)
• Optional interest payments (on certain plans)

What’s not included:

• A calculator result is not a guaranteed offer
• Interest rates and features can vary by age, property value and type, location, health and lifestyle
• Advice may not be the whole of the market if the adviser only covers Legal and General products
• Early repayment may come with charges
• Equity release can reduce inheritance and may affect benefit entitlement depending on circumstances

Pros and Cons of Legal and General equity release

Pros:

• Member of the Equity Release Council, so products follow ERC standards, such as the no negative equity guarantee
• Range of plan styles, including options that may allow optional payments
• Ability to stay in your home, with repayment usually delayed until death or long-term care
• Option to move home, subject to criteria

Cons:

• Interest can build up over time, especially on roll-up plans
• Early repayment charges may apply if you want to repay early
• Property type and value rules can exclude some homes
• Equity release can affect inheritance, means-tested benefits and future housing choices

Legal and General equity release calculator: what it can and cannot tell you

Legal and General includes an equity release calculator to give an estimate of how much you might be able to release, based on age and property value.

For example: a 65-year-old with a £250,000 home could see an estimate of up to £72,500.

It is worth spelling out to readers that:

• Calculator figures are illustrations, not an offer.
• A personalised illustration normally depends on full checks and advice.
• If the adviser only covers Legal and General plans, it may not show what other providers could offer.

How to compare Legal and General with other equity release providers

If your goal is to compare properly, these are the areas most people find helpful:

• Interest rate and whether it is fixed for life
• How you take the money: lump sum, drawdown, or a mix
• Repayment flexibility: optional payments, payment term options, and any limits
• Early repayment charges: when they apply and how they are calculated
• Moving home rules: what happens if you downsize or move area
• Property criteria: construction type, minimum values, flat rules, and so on
• Safeguards: Equity Release Council standards and the no negative equity guarantee
• Advice model: whole of market vs restricted advice, and what the adviser charges

What to do next

If you are considering equity release, you may want to:

• Use a calculator to get a rough starting point
• Compare Legal and General with other providers, because features and rates can differ
• Speak to a qualified equity release adviser to understand the long-term costs and risks
• Consider discussing it with family, so everyone understands how it may affect the property later on

This article is for general information only and is not financial advice. Equity release is regulated, and it is important to get support that reflects your personal circumstances.