Legal & General Flexible Navy Drawdown Lifetime Mortgage Equity Release

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Flexible Navy

Type Fixed
Rate 4.13%
APR 4.30%

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Incentives:

Cashback
Free Valuation
Free Application

Offers:

10%pa Optional Partial Payments
Inheritance Protection Guarantee
3-year No Early Repayment Charge*

Background

Legal and General Home Finance entered the equity release marketplace in early 2015 by acquiring existing lifetime mortgage company New Life Mortgages. This enabled them a quicker 'back-door' entry to the market than seeking PRA and FCA authorisation directly.

Legal & General Home Finance offer their equity release schemes with a range of flexible drawdown lifetime mortgage plans and high maximum lump sum plans, all with the control-ability measure of the 10% partial repayment function. They have more equity release plans in store with an aggressive target to grow the market significantly over the forthcoming years, which all bodes well for an already expanding post retirement lending market.

Eligibility

The Legal & General Flexible Navy Lifetime Mortgage scheme is specifically designed for those looking for one of the higher maximum equity release lump sums available with L&G. The plan is simplistic in design as the Flexible Navy offers an initial one-off single tax-free release of equity for the homeowner.

However, as the Navy plan can operate as a drawdown lifetime mortgage scheme, should the maximum not be taken, then any unused allowance is saved in a cash reserve facility. The L&G Flexible Navy Plan therefore could also be targetted by those looking for a smaller initial lump sum, but require the highest drawdown facility for their future demands in retirement.

The minimum property valuation applicable to this Legal and General Flexible Navy Lifetime Mortgage is slightly higher than most equity release schemes at £100,000. A maximum property valuation outside London is £2m, with properties in London being acceptable upto £4m. Please contact us on 0800 802 1051 if your valuation is higher.

The location of the property which must be a main residence, needs to be situated in England, Wales or mainland Scotland. For flats & maisonettes, Legal and General will only make their calculations based on 85% of the current market valuation. Additionally, should the property be leasehold then the minimum number of years remaining must be at least 185 years.

The L&G Flexible Navy Lifetime Mortgage is available on both a single and joint life basis. The minimum age of youngest homeowner needs to be at least 60, with a typical maximum age of 90. In certain circumstances an age of 90+ can be acceptable - please contact the team if so on Freephone - 0800 802 1051.

The minimum loan for this Navy plan is £10,000 with a maximum release of £750,000. For loans greater than £750k,000, bespoke quotations are available via Equity Release Supermarket. Please call 0800 802 1051 for a personalised Flexible Navy Key Facts Illustration.

Features

Legal and General's Flex Navy Plan offers an initial single capital lump sum with potential drawdown capabilities. This drawdown product provides a higher tax-free lump sum cash release than most equity release schemes based on age & property value. This is ideal for those looking for access to the higher end of the lending charts.

The Legal & General Home Finance Flexible Navy plan offers one the highest maximum equity release amount of all Legal and General's lifetime mortgage product range. Their loan-to-value percentage on this scheme starts from 23% at age 55, rising to 52.0% from age 85 and upwards.
Therefore, if you are in good health, looking for a higher maximum loan amount with flexibility of making ad-hoc repayments with no income verification, then the L&G Flexible Navy plan rates very highly.

Within the L&G Drawdown range the Flexible Navy plan sits between the Turquoise and Indigo products. The Navy therefore offers a higher LTV than the Turquoise, yet corresponding higher interest rate. The reverse applies to the Flexible Indigo plan, where the Navy has a lower maximum lump sum, but lower interest rate compared.

A generous free unlimited valuation is offered along with a fixed equity release lifetime interest rate on the tax-free lump sum.

Legal & General include a Downsizing Protection feature on all its plans.

The L&G version of Downsizing Protection means that anyone moving home after 5 years from the plan start date, can repay the loan with no early repayment charge, as long as the property they are moving into does not meet L&G’s lending criteria.

As Legal & General Home Finance are members of the Equity Release Council all their plans come with a no negative equity guarantee. Therefore, upon eventual sale of the property, any beneficiaries cannot be left with a debt to the equity release company.

For joint applicants there is an added protection feature for the last survivor of the plan. Should one homeowner die or move into care, the surviving partner has the option to be able to repay this lifetime mortgage within 3 years of this event with NO penalty.

Options

This Legal and General Flexible Navy Mortgage enables any homeowner to spend their tax-free cash as they wish, with no need in having to make any repayments. However, one feature of this L&G plan is the Partial Repayment Option which allows the planholder to start making upto 10% repayments of the original amount borrowed each year with NO penalty or income verification. This helps manage control the future balance of this lifetime mortgage UK scheme, either to reduce the roll-up effect of the interest, pay off the interest only, or even repay the future balance over approx 15 years by using the full 10% allowance.

A further Flexible Navy option for inclusion is the Inheritance Protection feature so the homeowner can secure a fixed percentage of the final sale value of the property. This is important for those who wish to guarantee a percentage of the house value from their inheritance.

A final option with the L&G Flexible Navy Lifetime Mortgage Plan is the opportunity to take a 2% cashback based on the amount taken. This does have the effect of increasing the equity release interest rate by 0.2%.

This drawdown plan is available with or without a £599 arrangement fee. The NO arrangement fee option is available until further notice.

*The 3-year no early repayment charge applies to joint life plans where the loan is repaid within 3 years of death or long term care of a partner
**Rate shown includes the standard L&G application fee and no cashback

To obtain further information or to request a quotation on the Legal and General Flexible Navy Lifetime Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 802 1051 today.

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L&G Flexible Navy Details (Drawdown)