Legal and General entered the equity release marketplace in early 2015 by acquiring existing equity release mortgage company New Life Mortgages. This enabled them a quicker root to market with immediate permissions, whilst at the same time obtaining PRA & FCA regulatory approval.
Legal & General have a portfolio of equity release schemes starting with a range of flexible lifetime mortgage plans and higher maximum lump sum plans, all with the control-ability measure of repayment functions and drawdown facilities. They have more equity release plans in store with ambitious targets to grow the market significantly over the forthcoming years, which all bodes well for an already expanding post retirement lending market.
The Legal & General Flexible Optional Payment Lifetime Mortgage is specifically designed for those looking for to make monthly payments of interest for a specific term, be it a fixed term or over their lifetime. The L&G Flexible OPLM has one of the lowest equity release interest rates, coupled with the discipline of a fixed interest repayment option facilitating management of the future balance. It offers a lower maximum release than its Flexible Plus OPLM counterpart, but this Flexible plan offers a lower interest rate, thus lower comparable monthly payments.
The minimum property valuation applicable to this Flexible Plus Lifetime Mortgage is £100,000, with a figure of £150,000 for ex-council properties. A maximum property valuation outside London is £2m, with properties in London being acceptable upto £4m. (contact us on 0800 678 5955
if valuation is higher).
The location of the property which must be a main residence, shall need to reside in England, Wales and 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 Optional Payment 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 – if so, please contact the team).
The minimum loan for this plan is £10,000 with a maximum release of £750,000. For loans greater than £750,000, bespoke quotations are available via Equity Release Supermarket. Please call 0800 678 5955
for a personalised Key Facts Illustration.
Legal and General’s Flexible OPLM Plan is an interest only lifetime mortgage scheme that 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 to control the balance of this equity release mortgage in conjunction with one of the lowest equity release interest rates possible. The minimum withdrawal amount 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.
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 to the equity release provider.
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.
This Legal and General Flexible OPLM enables any homeowner to spend their tax-free cash as they wish, with no need in having to make any repayments. The plan is ideally suited to residential interest-only mortgagors with no repayment strategy and require funds for settlement. However, one feature of the L&G plan is the Optional Payment feature which allows the planholder to make monthly payments of interest only back to L&G by direct debit. These repayments can be anywhere between a minimum of £25pm, upto 100% of the interest charged each monthly by the lender. This helps manage control the future balance of the lifetime mortgage UK scheme. By choosing to pay 100% of the interest charged will maintain a level balance, whilst opting to pay off a reduced amount will slow down any roll-up of interest. The added benefit of the OPLM plan is that NO proof of income, or affordability checks are required.
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.
A final option with the Flexible OPLM 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 upto 0.2%.
*Plan available with & without arrangement fee. The NO arrangement fee option is available until further notice.
**Interest rate is based on property outside London & the South-East
To obtain further information or to request a quotation on the Legal and General Optional Payment Lifetime Mortgage, please contact the Equity Release Supermarket team on 0800 678 5955