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L&G Premier Flexible Yellow Details (Drawdown)

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Premier Flexible Yellow

  • Type Fixed
  • Rate 7.32%
  • APR 7.60%
Incentives:
  • Free Valuation
  • Free Application
Offers:
  • 10%pa Optional Partial Repayments
  • Inheritance Protection Guarantee
  • 3-year No Early Repayment Charge*
  • Downsizing Protection Feature

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 started life with a range of Premier flexible drawdown lifetime mortgage plans and high maximum lump sum plans, all with the control-ability measure of the 10% partial repayment function. Since withdrawing the L&G equity release income plan in 2022, their focus is now on the range of drawdown and optional payment schemes, the latter is effectively an interest only lifetime mortgage. L&G are looking to fulfil the increasing demands of retirement living and develop plans to meet the expanding post-retirement lending marketplace.

Eligibility

The Legal & General Premier Flexible Yellow Lifetime Mortgage scheme is specifically aimed at the larger loan sector of the equity release loan market, as the main feature of this bespoke scheme is a minimum release loan size of £50,000.

The minimum property valuation applicable to this Premier Flexible Yellow Mortgage is £750,000, with an unlimited maximum property value.

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 Premier Flexible Yellow Lifetime Mortgage is available on both a single and joint life basis. The minimum age of the 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).

The minimum loan for this plan is £50,000 with a maximum release of £2m. For loans greater than £2m, bespoke quotations are available via Equity Release Supermarket. Please call 0800 088 5898 for a personalised Key Facts Illustration.

Features

Legal and General’s Flexible Yellow Plan is a drawdown lifetime mortgage scheme. This drawdown product provides an initial tax-free lump sum cash release for immediate use, with any remaining unused cash being retained in an uncapped cash reserve facility. This is ideal for those looking for access to largest cash drawdown amount for the future with the lowest equity release interest rate possible. The minimum withdrawal from the cash reserve facility is just £2,000 with no admin charges for any additional drawdown taken.

A generous free unlimited valuation is offered along with a fixed equity release lifetime interest rate on the initial lump sum. Any further withdrawals would be at the interest rate applicable at the time of withdrawal.

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 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, over & above the property value, to the equity release provider.

Options

This Legal and General Yellow Drawdown 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 Yellow 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. This helps manage control the future balance of the lifetime mortgage uk scheme, either to reduce the roll-up effect of the interest, pay off the interest only or even reduce the future balance by using the full 10% allowance.

A further 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.

*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

To obtain further information or to request a quotation on the Legal and General Yellow Lifetime Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 088 5898 today.

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