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 Lifetime Mortgage Review, you could compare equity release reviews from other providers and as a starting point use the equity release 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:
- Mortgage Strategy Awards 2017 – Best equity release / lifetime lender
- Moneyfacts 2017 – 5 star rating for equity release
L&G Equity Release options
Legal & General offer two ranges of Lifetime Mortgage plans that we will focus on in this Equity Release review – their Flexible Lifetime Mortgages and their Premier Flexible Lifetime Mortgage.
As always you will need to speak to an equity release qualified financial adviser in order to establish whether a Legal & General equity release scheme is suitable for you. You can therefore either seek the advice of 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 and 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 these lifetime mortgages is £10,000 and the maximum will be based on your age and value of your property.
You are able to draw down a minimum of £2,000 at any time with no fees and will be charged the interest rate at the time of the drawdown; not your initial application.
The features of this flexible lifetime mortgage plan are that it comes with a no negative equity guarantee, so you will never owe more than the value of your home; you can select the inheritance protection option at no extra cost to leave a percentage of the property to family; in any 12 month period you can repay up to 10% of the amount of money you have drawn without incurring penalty fees
Premier Flexible Lifetime Mortgage
This Legal & General equity release scheme works in a similar way to the usual flexible lifetime mortgages however the minimum you can borrow is £250,000.
Are you eligible for Legal & General Lifetime Mortgage?
Once you have read your equity release reviews, before you decide on an equity release scheme with any provider it is important that you fully understand the implications of a lifetime mortgage; look at all the options available to you and discuss everything with the family.
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.