Legal & General Equity Release Review
- 2 lifetime mortgages to choose from
- Inheritance Protection at no extra cost
- No negative equity guarantee
Once you have read the L&G review, you can compare equity release reviews with other providers and see how much equity you could release from your property.
Try the lifetime mortgage calculator
About Legal & General
This Equity Release review focuses on L&G or Legal & General to give them their full name.
Legal & General are one of the world’s largest insurance and investment management companies and the UK’s leading pension fund asset manager. The Legal & General Group is comprised of 6 businesses:
- Legal & General Retirement
- Legal & General Investment Management
- Legal & General Insurance
- General Insurance
- Legal & General Capital
As members of the Equity Release Council, Legal & General abide by their rules and principles for equity release schemes and promote their ‘no negative equity guarantee’.
They are also authorised by the Financial Conduct Authority and have won the following awards:
- Mortgage Solutions Awards 2022 – Best overall provider for lifetime mortgages
- Mortgage Finance Gazette Awards 2022 – Best lifetime mortgage lender
- Investment Life & Pensions Moneyfacts Awards 2022 - Best equity release service – Highly Commended
Latest news from L&G
Homeowners in England and Wales could access five years’ worth of retirement income from property wealth
Legal and General Equity Release options
Legal & General offer two lifetime mortgage plans both of which are included in this equity release review:
- Flexible lifetime mortgages
- Optional payment lifetime mortgage
You will need to speak to an equity release qualified financial adviser to establish whether a Legal & General equity release scheme is suitable for you. This can either be through your own IFA or broker or alternatively Legal & General have their own team of personal advisers.
The advice they provide is free however they are only able to advise you on the Legal and General equity release schemes.
Flexible Lifetime Mortgage
The flexible lifetime mortgage gives customers the opportunity to borrow a tax-free cash sum in one go or in smaller amounts as needed.
The minimum you can borrow with this lifetime mortgage is £10,000 in your first release, with smaller sums of at least £2,000 thereafter. The maximum will be based on your age and value of your property.
Optional payment lifetime mortgage
The optional payment lifetime mortgage also lets you borrow cash in one go or several lump sums. The initial amount you can borrow is a minimum of £10,000, with payments of at least £2,000 thereafter.
The difference with this scheme is that you can make monthly repayments against some, or all of the interest. You have flexibility to stop the monthly payments however once you stop, they cannot be restarted.
Are you eligible for a Legal & General Lifetime Mortgage?
To be eligible for one of Legal and General’s equity release schemes, you need to meet all of the following conditions:
- You are a least 55 years of age
- The property you are seeking the lifetime mortgage for is your primary residence
- The property is worth more than £70,000 ( £100,000 for flats, maisonettes, ex-council property)
- It is built of standard construction and located in England, mainland Scotland or Wales
- You own the property – you may still be eligible for a Legal & General Equity Release scheme if you have a small mortgage however this must be paid off as part of the lifetime mortgage
- The interest is calculated daily and added to the total amount on a monthly basis
- You can have someone living in the property with you however they may need to seek legal advice and sign a Legal & General form stating that they know the property has a lifetime mortgage on it
- Repayment is not required until you die or move into long term care however optional payments can be made within the terms and conditions of the Legal & General equity release scheme
- You can choose to pay the lifetime mortgage off early however you may be charged an early repayment fee
- You can move home as long as the new property meets the Lifetime mortgage lending criteria. You would need to pay the valuation fee, property transfer fee, legal fees and of course any moving expenses and you may be asked to repay some of the loan
- You can remain in your property until you die or move into long term care as long as you abide by the Legal & General equity release terms and conditions
Legal & General Equity Release Calculator
The Legal & General website has an equity release calculator that you can use to see how much money you could release from your property with one of their Lifetime Mortgage options, based on your age and value of your property.
For example if you are a 65 year old living in a house worth £250,000, the Legal and General equity release calculator shows that you could release up to £72,500.
This is only a guide and not a guarantee so you would need to speak to an adviser to get a more accurate figure but keep in mind the equity release advisers they work with only advise on Legal & general equity release schemes and not the whole of the market.
What should I do now?
To see how L&G compare with other companies, take a look at our other equity release reviews.
Alternatively if you are want to see how much cash you could release, why not try our free and easy to use calculator.
Remember, when comparing plans, some advisers only work with specific companies. This is one of the reasons we have teamed up with leading specialist Age Partnership, as they compare schemes and have access to preferential rates with leading UK companies like Aviva, Legal & General, Pure Retirement, Just Retirement,Canada Life and Crown.
Once you have read our equity release reviews, before choosing the right equity release mortgage for you, always seek professional advice, ensure you fully understand the implications of a lifetime mortgage, review all the options available to you and discuss everything with your family.