Legal & General Home Finance entered the equity release marketplace in 2015 when they first announced their acquisition of NewLife Mortgages. Newlife had been providing unique and innovative retirement products since 2003 and had solidified a reputation for quality and dependable service.
The Legal & General Home Finance Premier Flexible Black Lifetime Mortgage is designed for higher valued properties and offers the lowest interest rate from the whole of their product range.
The Premier Flexible Black Plan is a drawdown lifetime mortgage product that offers the lowest interest rate of all products offered by this lender. The product offers key features that are attractive to homeowners, who are concerned about the impact of interest roll-up or leaving behind an inheritance to loved ones.
To be eligible for this Flexible Black product, the homeowner should be between the ages of 55 and 90.
The minimum loan amount on the Premier Black plan is higher than most at £100,000 with the maximum being £2 million, though this maximum threshold can be reviewed on a case-specific basis. The loan amount available to each individual homeowner is determined by the youngest homeowner’s age and the value of their property.
There is no minimum valuation imposed on the property. The maximum threshold is £4 million, however if the property has a higher valuation, it can still be reviewed if it has been accompanied by a referral.
If the property concerned is a flat or maisonette, only 85% of the property value is taken into account.
In order to be eligible, the property must be located in England, Mainland Scotland, or Wales and be the applicants main residence.
This Premier Flexible Black product comes with a number of innovative features. To start, there is a drawdown facility available. The amount available for drawdown is capped out at the maximum LTV available less the initial advance received by the homeowner. The drawdown can be requested by the homeowner at any point with the minimum amount that can be taken being £2,000. The interest on any drawdown amounts is charged at the fixed rate that applies at the time of the individual drawdown.
Two other features of this product are the inheritance protection and the no negative equity guarantee, both which come standard with the Premier Flexible Black Plan. The no negative equity protection ensures that if the final sale of the home does not satisfy the loan obligation, the estate is not left with any outstanding debt so long as the property was sold for a reasonable price. Therefore, beneficiaries are not left with any debt to be paid.
The inheritance protection that comes with the Premier Flexible Black Plan ensures that the homeowner can protect a percentage of their property value right at the start of their loan process.
Another interesting feature of this Premier Flexible Black product is that it is portable. So, the homeowner is allowed to move their lifetime mortgage to another property so long as the property satisfies the property eligibility guidelines.
Lastly, one of the most attractive features of this product is its option partial repayment option. This feature allows homeowners to repay up to 10% of the amount drawn without incurring any early repayment charges. They can do this through making up to four repayments each year. Every payment made must be at least £500 each. The homeowner can start making payments as soon as their loan is completed, and their 10% allowance is renewed each year on the anniversary of the loan completion.
Additional borrowing requests can also be made with this product, though the homeowner must wait at least 12 months before applying.
This product is available for both single and joint lives with loan-to-values starting from age 55 at 8% on both single and joint life basis, and they go upto 38% for borrowers aged 85 and over.
This product is ideal for the homeowner who wants to take advantage of a lifetime mortgage, but is also concerned about the impact of interest roll-up. By having the ability to make voluntary repayments, the homeowner is able to control their loan balance. And they are not forced to adhere to a payment schedule to do so, as all payments are voluntary and not required.
Call the Compare Equity Release team on 0800 028 3142 for further details, or to request a quote on the Legal & General Premier Flexible Black Lifetime Mortgage.