Legal & General | Flexi Teal Drawdown Lifetime Mortgage

Flexible Teal

Type Fixed
Rate 3.57%
APR 3.70%

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Incentives:

Cashback
Free Valuation
Free Application

Offers:

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

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 route to market with immediate permissions, whilst at the same time obtaining PRA & FCA regulatory approval.

Legal & General's range of equity release schemes principally offer flexible drawdown lifetime mortgage plans with varying degrees of loan-to-values to suit the overall size of cash facility required. All plans come with the balance control feature - the 10% partial repayment function. L&G being one of the most recognised equity release lenders are always looking to develop the later life market and have more plans in store, which all bodes well for an already expanding post retirement lending market.

Eligibility

The Legal & General Flexible Teal Lifetime Mortgage scheme is specifically designed for those looking towards a combination of higher loan-to-value and competive interest rate. The Flexible Teal plan, is designed to provide a one-off lump sum, and offer the availability of a drawdown for those who decide not to take the maximum lump sum up-front.

It differs from the Flexible Turquoise, which is one rung higher up on loan-to-value (LTV) table, due to the size of the maximum loan it can produce; with the Teal plan having a lower loan amount for any given age. However, one advantage of the L&G Flexible Teal plan over the Turquoise, is that it provides a lower interest rate at the expense of loan size.

The minimum property valuation applicable to this Optional Payment Blue Mortgage is £70,000, with a figure of £100,000 for ex-council properties. A maximum valuation outside London is £2m, with properties in London being acceptable upto £4m. Please. Contact us on 0800 802 1051 if 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 base their calculations on 85% of the current market valuation. Additionally, should the property be leasehold then the minimum number of years remaining must be at least 175 years.

The L&G Flex Teal Lifetime Mortgage plan is available on both a single and joint life basis. The minimum age of youngest homeowner starts from age 55, with a typical maximum age of 90. In certain circumstances an age of 90+ can be acceptable - please contact the team if so on 0800 802 1051.

The minimum loan for this Teal 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 Turquoise Key Facts Illustration.

Features

Legal and General's Flexible Teal Plan offers an initial upfront cash lump sum with any unused facility then left available in a drawdown facility for future use, if required. This drawdown lifetime mortgage product provides a slightly higher tax-free lump sum cash release than most L&G Flexible plans. This is ideal for those looking for access to either; a high initial release with smaller drawdown facility, or those maybe requiring a smaller initial amount, but a larger than normal drawdown facility due to their future equity release requirements.

This drawdown plan is pitched towards the higher loan-to-value end of the L&G product range, still with a competitive interest rate amongst the Legal and General Home Finance lifetime mortgage products. Therefore, if you are looking for a higher-end loan size, but with it a competitive interest rate, then the L&G Flexible Teal plan ranks very competitively.

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, which means if your plan has run for a minimum of 5 years and you are moving to another property that doesn't meet L&G's lending criteria, then the loan can be repaid with no penalty.

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 Teal Lifetime 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 the L&G Teal 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 15-16 years by using the full 10% allowance.

A further Flexible Teal option that's included is the Inheritance Protection feature, where 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 Flexible Teal 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 Teal Lifetime Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 802 1051 today.

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L&G Flexible Teal Details (Drawdown)

Flexible Teal

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Background

Eligibility

Features

Options

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