Legal & General - Premier Flexible Repayment Plan
  • Legal & General Premier Flexible Interest Only Lifetime Mortgage
  • Rate: 3.75%
    APR: 3.90%
    Incentive: No
    Offers: Minimum Loan Size £250,000 | 10%pa Optional Partial Repayment Option | Inheritance Protection Guarantee | Location based Interest Rate*

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

Legal & General Home Finance provide a portfolio of equity release schemes with a range of flexible lifetime mortgage plans and high maximum lump sum plans, all with the control-ability measure of the 10% partial repayment function & drawdown facilities.
They have more equity release plans afoot with ambitious targets 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 Premier Flexible Lifetime Mortgage scheme is specifically aimed at the larger loan end of the equity release marketplace, as the main feature of this bespoke lifetime mortgage scheme is a minimum initial loan size of £250,000.

Therefore, there is no minimum property valuation allocated to this Premier Flexible Lifetime Mortgage as long as the loan-to-value ensures the minimum loan of £250,000 is reached. However, a maximum property valuation of £4m usually applies (contact us on 0800 678 5955 if higher).

The location of the property which must be a main residence, shall need to be situated in England, Wales and mainland Scotland. Legal and General Home Finance 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 Premier Flexible Lifetime Mortgage 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 – if so, please contact the team).

The minimum loan for this plan is £250,000 with a maximum release of £2m. For loans greater than £2m, bespoke quotations are available via Equity Release Supermarket. Please call 0800 678 5955 for a personalised Key Facts Illustration.

 

Features

Legal and General’s Premier Flexible Plan is a lifetime mortgage scheme with flexible options. This equity release 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 a large capital amount, ability to control the balance in the future, but with the lowest equity release interest rate possible.

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.

 

Options

This Legal and General Premier Flexible 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 Legal & General plan is the Optional Partial Repayment feature 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.

*Interest rate is based on properties outside the London & South-East area

 

To obtain further information or to request a quotation on the Legal and General Premier Flexible Lifetime Mortgage plan , please contact the Equity Release Supermarket team on 0800 678 5955 today.