You’ll definitely want to consider Legal and General to cater to your equity release needs! If you don’t, you could miss out on joining one of the leading global financial providers.
With over 1 trillion in assets, they’re surely a company to trust with your precious home. But are their equity release products on par with the rest of their offerings?
We are here to help you discover:
- Who are Legal and General?
- What do they offer?
- If you should consider equity release with Legal and General.
At EveryInvestor, we want to guide you accurately through the equity release industry, helping you to find the best lender and plan to suit your requirements.
Could Legal and General be the one you’ve been looking for? Let’s take a look!
What is Equity Release & How Does it Work?
With equity release, homeowners aged 55 and above may get a tax-free cash sum from their home’s value. The amount you can release is determined by your age and the current market value of your property. You may claim the money as a single lump sum, as monthly earnings, or in several smaller payments.
Does Legal & General Offer Lifetime Mortgages & Home Reversion Schemes?
Legal & General only offers lifetime mortgages and not home reversion schemes. However, they do also have retirement interest-only mortgages available for older borrowers.
What’s a Lifetime Mortgage?
A lifetime mortgage gives you the opportunity to borrow money secured against your house and keep ownership of it. When the final borrower passes away or enters long-term care, the home is sold, and the value is used to pay off the debt.
Full article: What’s a Lifetime Mortgage?
What’s a Retirement Interest-Only Mortgage?
People over 55 can get a Retirement Interest-Only Mortgage. It’s a mortgage secured by your property. Each month, you pay the interest, so the amount you owe stays the same. You may use it for almost any purpose (including paying off an existing mortgage).
More information: What’s a Retirement Interest-Only Mortgage?
An Introduction to Legal & General
Legal & General Group plc, or simply Legal & General, is a British global financial services corporation based in London. It’s the UK’s largest supplier of individual life assurance products and a top 20 worldwide asset manager. With over £1 trillion in assets, the equity release business was started in 1836 and has since developed into one of Europe’s leading insurance and asset management firms.
By delivering stable pension incomes, L&G works with corporations, pension fund trustees, and advisers to safeguard the corporate pensions of workers who are in or near retirement. They also provide annuities and lifetime mortgages to individual consumers searching for financial stability in their later years.
Legal & General Services Offered
Besides lifetime mortgages and retirement interest-only mortgages, Legal & General offers many different financial services. These include investments, retirement solutions, life cover, insurance, and regular mortgages.
The Pros & Cons of Equity Release with Legal & General
The main pro of equity release with Legal & General is that they’re an award-winning firm. The main con of equity release with Legal & General is that the interest can build up quickly.
More pros and cons include:
Pros of Legal & General
- Award-winning service.
- Flexible plans are available.
- No interest roll up with a retirement interest-only mortgage.
- £2,000 minimum additional loan amounts for each release.
Cons of Legal & General
- Interest can compound quickly.
- The minimum property value is £100,000 instead of £70,000 for some property types.
Legal & General Plans & Special Features
Legal and General’s lifetime mortgages have the following features:
- Available for homeowners aged 55 or over.
- Minimum loan of £10,000
- Your age and property value determine the maximum loan value.
- The minimum property value is £70,000 for houses and £100,000 ex-council, ex housing association or ex Ministry of Defence properties.
- No affordability checks are a requirement.
- Monthly interest repayment options.
- Fixed interest.
- You can select an optional payment or flexible lifetime mortgage
Legal and General Retirement interest-only mortgages have the following features:
- You must be at least 55.
- Minimum loan of £10,000.
- Borrow up to 60% of your property value.
- The minimum property value is £70,000 or £100,000 for flats, maisonettes, ex-council, ex housing association or ex Ministry of Defence properties.
- You will need to undergo affordability checks.
- Compulsory monthly repayments (foreclosure risk)
Why Consider Legal & General for Equity Release?
You should consider releasing equity through Legal and General because they won the Later Life Lender of the Year award at The Mortgage Awards in 2020 and 2021, making them a leading provider. In addition, they are members of the Equity Release Council.
How Do I Know if Legal & General is Right for Me?
You will know that Legal and General is the right provider to help you release the cash tied into your home if your financial adviser suggests their services.
Not What You’re Looking For?
Is Legal and General not the equity release provider you’ve been looking for? Perhaps you’d prefer a home reversion scheme? Take a look at our schemes list to find the right fit.