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 ‘back-door’ entry to the market than seeking PRA & FCA authorisation directly.
Legal & General Home Finance offer their equity release schemes with a range of 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 an aggressive target 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 Plus Lifetime Mortgage scheme is specifically designed for those looking for one of the highest maximum equity release lump sum available. The plan is simplistic in design as the Flexible Max Plus offers an initial one-off single tax-free release of equity for the homeowner.
However, as the plan can operate as a drawdown lifetime mortgage scheme, should the maximum not
be taken, then any unused allowance is saved in a cash reserve facility. The L&G Flex Max Plus therefore could also be targetted by those looking for a smaller initial lump sum, but require the highest drawdown facility for their future demands in retirement.
The minimum property valuation applicable to this Legal and General Flexible Max Plus Lifetime Mortgage is slightly higher than most equity release schemes at £100,000. 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, needs to located 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 Max Plus Lifetime Mortgage is available on both a single and joint life basis. The minimum age of youngest homeowner needs to be at least 60, 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 Flex Max Plus Plan offers an initial single capital lump sum with potential drawdown capabilities. This drawdown product provides a higher tax-free lump sum cash release than most equity release schemes based on age & property value. This is ideal for those looking for access to the higher end of the lending charts.
The Legal & General Home Finance Flex Max Plus plan offers the highest maximum equity release amount of all Legal and General’s lifetime mortgage product range. Their loan-to-value percentage on this scheme starts from 25.5% at age 55, rising to 54.0% 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, then the L&G Flexible Max Plus plan rates very highly.
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 Flex Max Plus 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 this 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 approx 16-17 years by using the full 10% allowance.
A further Flex Max Plus 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 L&G Flexible Max Plus 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%.
*Interest rate shown is based on properties outside London & the South East
To obtain further information or to request a quotation on the Legal and General Lifetime Mortgage, please contact the Equity Release Supermarket team on 0800 678 5955