Legal & General Equity Release Review
- Moneyfacts 5 star rated equity release schemes
- 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, or use the calculator to see how much cash you could release from your home.
Try the Equity Release 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:
- The Mortgage Awards 2020 – later lifetime lender of the year
- Mortgage Strategy Awards 2020 – Best equity release provider / lifetime lender
Legal and General Equity Release options
Legal & General offer three ranges of Lifetime Mortgage plans that we look at in this equity release review:
- Flexible lifetime mortgages
- Optional payment lifetime mortgage
- Income 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 advisor or Legal & General can put you in touch with ‘The Retirement Lending Advisers’.
The Retirement Lending Advisers are an independent company who will not charge you for any advice they give. However they are only able to advise you on the Legal and General equity release schemes, not the whole of the market
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.
Income lifetime mortgage
The income lifetime mortgage lets you borrow an initial sum of at least £2,500, then pays you a monthly income over 10, 15, 20 or 25 years.
The minimum you can release each month is £200 and you can stop the monthly payments at any time but you can’t restart them. Once the fixed income period ends, the monthly payments will stop but the money borrowed will continue accruing interest.
All lifetime mortgage options have a fixed interest rate and come with a no negative equity guarantee, so you will never owe more than the value of your home. In addition, they offer inheritance protection at no extra cost if you want to leave a percentage of your property to family and you can make repayments against the loan, subject to their terms and conditions.
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 £100,000 ( £150,000 for 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
- Legal and General work with ‘The Retirement Lending Advisers’ to help advise you on whether the equity release plan is suitable and the various options available to you. They do not charge for this service however they only offer advise on Legal & General lifetime mortgages and not equity release schemes available with other companies
- 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 £90,000.
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 schemes that not all advisers compare the whole market. Some focus on particular companies which may not offer you the most appropriate scheme. This is one of the reasons we have teamed up with leading specialist Age Partnership, as they compare schemes across the whole market with companies like Aviva, Legal & General, LV, Pure, Canada Life, One Family, Scottish Widows, Hodge Lifetime and Just Retirement.
And don't forget, Age Partnership guarantee to beat any like for like equity release quote or they will give you £500.
Once you have read our equity release reviews, before choosing the right equity release scheme 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.