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 have started life with a range of equity release schemes offering 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 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 Max (formerly Lump Sum Max) Lifetime Mortgage scheme is specifically designed for those looking towards the higher loan-to-value end of the market where the maximum equity release lump sums become available. The Flex Max plan, initially designed as a one-off lump sum scheme, now offers the availability of drawdown for those who decide not to take the maximum all up-front.
It differs from the Flexible Max Plus in the size of the maximum loan it can produce, which is lower. However, one advantage of the L&G Flexible Max plan is that it provides a lower interest rate at the expense of loan size offered by the Lump Sum Plus scheme.
The minimum property valuation applicable to this Flexible Max Lifetime Mortgage plan is £100,000, with a figure of £150,000 for ex-council properties. The 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, needs to located in England, Wales and mainland Scotland. For flats & maisonettes 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 Flex Max 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).
The minimum loan for this 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 678 5955
for a personalised Key Facts Illustration.
Legal and General’s Flexible Max 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 higher tax-free lump sum cash release than most 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 Sum plan offers the 2nd highest maximum equity release amount of all Legal and General Home Finance lifetime mortgage products. Their loan-to-value percentage on this scheme starts from 22.5% at age 55, rising to 50.5% 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 and a drawdown option, then the L&G Flex Max 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.
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.
This Legal and General Flexible Max 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 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 Flex Max 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 Max 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%.
*Plan available with & without arrangement fee. The NO arrangement fee option is available until further notice.
**Rate illustrated is based on properties outside London and the South-East
To obtain further information or to request a quotation on the Legal and General Flexible Max Lifetime Mortgage, please contact the Equity Release Supermarket team on 0800 678 5955