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Your guide to Legal and General equity release

Find out if L&G equity release plans and features are right for you – and if you’re eligible

Introducing Legal and General equity release

Legal & General is one of the UK’s biggest financial services brands to offer equity release. They specialise in lifetime mortgages, the most popular form of equity release. If you’re a homeowner aged 55+, you could be eligible to release tax-free cash from your property, while still owning it and being able to continue living there.

In our guide to Legal & General equity release, we look at their lifetime mortgage plans, features, eligibility criteria and more. But L&G is one of many equity release providers, so it’s a good idea to check offers from other providers to make sure you get the most suitable plan.

Through our selected equity release advisers, you can get preferential quotes from leading equity release providers. To find out how much you can release, check here or talk to one of our friendly consultants by calling 0808 178 3055 or request a call back.

Did you know?

Each year over 70,000 UK equity release plans are agreed, according to the Equity Release Council, with the majority being lifetime mortgages – the type of equity release offered by Legal & General.

What Legal and General equity release plans are available?

Legal & General offers the UK’s most popular form of equity release known as a lifetime mortgage. Because a lifetime mortgage lets you borrow money without having to make regular repayments, it’s a way to access tax-free cash if you prefer not to have the burden of monthly repayments.

There are two main products in the L&G equity release portfolio:

Flexible Lifetime Mortgage. Legal & General’s Flexible Lifetime Mortgage product gives you the option of taking the full tax-free cash release as a one-off lump sum. Alternatively, you can take an initial lump sum, with the remaining money you are eligible for held in reserve for later withdrawals – this is known as a drawdown lifetime mortgage.

Optional Payment Lifetime Mortgage. This interest only lifetime mortgage gives you the option of making whole or partial interest payments, within set criteria. This prevents or reduces interest building up that would need to be paid back when the property is sold. This could be suitable if you can afford to make payments, and if you wish to maximise the amount of inheritance you leave. As with the L&G Flexible Lifetime Mortgage, you can either take a single lump sum or smaller amounts when you need them.

With both of these products, as with other providers’ lifetime mortgages, the outstanding loan amount is paid back through the sale of your house when you pass away or move into long-term care. In the meantime, you retain full ownership of your home and can use the tax-free cash however you wish.

As with other providers, there is a ‘no negative equity guarantee’ with L&G equity release.  This means that your loved ones won’t have to pay back more than the amount that the property is sold for as long as the terms and conditions of the loan are met. Legal & General equity release also has an Inheritance Protection option, where you can guarantee that part of your home’s value can be passed onto loved ones.

How much tax-free cash can I unlock with Legal and General equity release?

Legal & General are like other equity release providers in that the amount you can borrow depends on a number of factors including your age. The older you are, the more you can borrow.

Property value is also a factor. The greater your property’s value, the more you can borrow. With an L&G Lifetime Mortgage, the maximum amount available for a 55-year-old ranges between 3.5% and 17.2% of the property’s value. For someone aged 85+, the maximum amount available ranges from 20.6% to 47.5% of the property value.

L&G equity release has a minimum release amount of £10,000 across the L&G lifetime mortgage products. If you choose the drawdown facility, you can borrow a minimum of £10,000 for the initial release, with a minimum of £2,000 applying to each further release. The company generally has a maximum loan amount of £750,000, although it may consider cases over this.

If you’d rather not limit yourself to Legal & General equity release quotes and would like to find the maximum release available from multiple providers, speak to one of our friendly consultants today by calling 0808 178 3055 or request a call back.

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Am I eligible for Legal and General equity release?

Each lender has their own criteria for a lifetime mortgage, but with L&G equity release you must:

  • Be a UK resident, excluding the Isle of Man and the Channel Islands  
  • Be aged 55 or over; if you apply for a lifetime mortgage as a couple, both applicants must be 55 or older (maximum age is 90)
  • Own a home with a value of £70,000 or more that is your main residence – or £100,000 for flats and former council, housing association or Ministry of Defence properties
  • Wish to borrow £10,000 or more
  • Be mortgage free, or have just a small mortgage remaining
  • Have a freehold property, or if leasehold the remaining lease plus the age of the youngest borrower must be at least 175 years 

Each equity release provider has its own eligibility criteria, so if it seems that you are not eligible for Legal and General equity release, please contact us on 0808 178 3055 or request a call back and we will arrange help from one of our selected advisers.

What’s missing from the Legal and General equity release product range?

Legal & General does not offer enhanced lifetime mortgages. Other providers do offer these plans, where living with certain health conditions or lifestyle factors may qualify you for higher tax-free cash releases or lower interest rates. 

Also, Legal and General equity release is restricted to lifetime mortgages: the company doesn’t offer home reversion plans. Offering an alternative to lifetime mortgages, these less common plans involve selling all or part of your home in exchange for a tax-free cash lump sum or income. You can then stay in the property as a tenant but with no rent to pay until you pass away or move into long-term care.

Check your eligibility

Call us on 0808 178 3055 and we’ll arrange a free, no-obligation appointment and equity release advice* from a specialist who will confirm whether you are eligible. If you’re unable to talk now, request a call back and we’ll call when it’s convenient to you.

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Already have a lifetime mortgage?
You could switch for a better deal

Now could be a good time to switch to a different lifetime mortgage. You may be able to release more tax-free cash due to being older than when you took out your existing plan. An increase in your property’s value or being in poorer health could also qualify you for further cash. Interest rate changes may also save thousands over the lifetime of your plan.

Why not arrange a free review* to find out if switching works for you?

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Can I talk to a Legal and General equity release adviser?

You can’t get a lifetime mortgage direct from L&G as the company doesn’t have its own team of Legal and General equity release advisers. In order to decide which provider and plan is right for you, we recommend that you speak with a specialist equity release adviser with access to plans from a number of leading providers.

Here at Equity Release Wise, we bring you the services of our selected specialist equity release advisers who can advise you on equity release plans from a number of leading providers. Simply call us on 0808 178 3055 or request a call back and we will arrange a no-obligation appointment with our selected equity release advisers.

Is Legal and General equity release right for me?

Legal & General have been providing financial services products to UK consumers since 1836. With over 10 million customers, it’s clearly a company that consumers feel they can trust. 

Their numerous awards include the Later Life Lender of the Year winner in the Mortgage Introducer Awards 2020. In terms of customer reviews, the company has a 3.2 score on Trustpilot, although the reviews cover all of L&G’s operations, and not just equity release.

If you choose Legal & General as your equity release provider, you will also benefit from some welcome flexibility including:

  • A drawdown option where you can take flexible payments over time
  • A way to safeguard a percentage of your property’s value as an inheritance for your loved ones
  • The ability to move your lifetime mortgage to a new property, subject to lending criteria
  • No early repayment charge if you move to a property that meets L&G’s lending criteria and need to repay part of the lifetime mortgage. 
  • No early repayment charge if after five years you move and the new property doesn’t meet Legal & General’s lending criteria 

But on the other hand, the fact that Legal & General doesn’t offer more cash or a better rate on account of medical or lifestyle factors may mean you can get a better deal elsewhere. Don’t forget that other equity release providers each have their own lending criteria, product options and interest rates. This is why we recommend that you talk to an adviser who can bring you access to plans from multiple providers.

Which other companies offer equity release?

Legal & General is just one of several UK companies offering equity release, so why not compare plans from different providers to get the best deal? Equity Release Wise can arrange this for you, with a search across plans from a number of the leading providers.

Here are just some of the leading equity release providers the search will cover. All of them are of course authorised and regulated by the Financial Conduct Authority and are members of the Equity Release Council.

aviva logo
legal & general logo
canada life logo
just logo
pure retirement logo
crown equity release logo

Apply for your no-obligation equity release quote

Find out if you qualify for equity release and how much you could borrow. Just click ‘Get started’ or call us on 0808 178 3055 and one of our team will be delighted to help arrange a free consultation and quote*.

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Answering your questions

Still unsure of a few things? We’ve got you covered with answers to some of our most frequently asked questions.

  • Do I need to talk to a Legal and General equity release adviser?

      Legal & General don’t have their own equity release advisers. Instead, they recommend that anyone interested in equity release should talk to a financial adviser. We recommend that you deal with an adviser who can search products from multiple providers to find you the best plans, features and deals for your individual circumstances.

  • Where can I find a Legal and General equity release calculator?

      Most providers will offer their own calculator, and Legal & General is no exception. But we suggest that instead of tying yourself down to just one provider with the Legal and General equity release calculator, you compare plans from multiple providers. Equity Release Wise can arrange a comparison of plans from a number of the leading providers.

  • What are the current Legal and General equity release interest rates?

      Interest rates change daily, and our selected equity release advisers have access to rates from leading providers across the UK. By speaking with them, you’ll be able to compare Legal and General equity release interest rates with other leading providers to get the best deal.

      And remember: most lifetime mortgages will be arranged on a fixed interest rate, so your plan won’t be affected by rising interest rates should you opt for a fixed-rate plan.

  • What are the potential risks of a lifetime mortgage?

      A lifetime mortgage has worked for thousands of over 55s in need of tax-free cash. But it’s important to understand lifetime mortgage pros and cons before deciding if it’s right for you, so here are some potential risks you need to be aware of: 

      • Interest is calculated daily and added to the amount you owe each month. The amount owed therefore increases and reduces any equity left in your home when the plan ends, unless you choose to make interest payments while the plan is running.
      • Taking equity out of your home will mean that the inheritance you leave to loved ones will be reduced.
      • If you give some of the money you release to family as a gift, they may be liable to pay inheritance tax in the future.
      • You may have to pay an early repayment charge if you choose to pay back some of the loan early.

      Borrowing money through a lifetime mortgage may affect your entitlement to means-tested state benefits. During your appointment with one of our selected equity release advisers, they will help you establish whether your benefits could be affected.

Still have questions?

We hope this information has been useful. To find out more or arrange a consultation with an adviser, please call or request a call back and we’ll be happy to help further.

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+ Client testimonials refer to the service provided by our selected equity release advisers. We have changed the clients’ names and certain identifying information to protect their privacy.

Please note that equity release will involve a home reversion or a lifetime mortgage, which is secured against your property and will reduce the value of your estate and impact funding long-term care. To fully understand the features and risks, ask for a personalised illustration. Equity release requires paying off any existing mortgage. Any money released, plus accrued interest would be repaid upon death, or moving into long term care.