Legal & General took over Newlife in early 2015, who had been providing equity release products since 2003. Legal & General has since launched the competitively priced Optional Payment Lifetime Mortgage plan with new features and is also funded by Legal & General themselves.
This is an Interest-Only lifetime mortgage (OPLM) scheme which is available on a single and joint life basis from the age of 55 and upto a maximum age of 90. The OPLM Pink Lifetime Mortgage will allow partial repayments of upto 10% of the original amount borrowed, with no penalty from inception of the plan.
The Legal & General Optional Payment Pink Lifetime Mortgage will accept applications with a minimum property valuation of £100,000, and ex-council houses must have a minimum valuation of £100,000. Flats & maisonettes are accounted for at 85% of their valuation when calculating the maximum equity release possible.
Properties will be considered when situated in England, Wales & mainland Scotland upto £2 million in value. The exception to this is in London where properties can be considered upto a maximum of £4 million in value. Legal & General will considers exceptions to this rule on a case-by-case basis so please call the Compare Equity Release team on 0800 678 5169 if this applies.
This Legal & General Interest-Only scheme has a minimum initial cash advance of just £10,000 and L&G have increased their maximum loan size to £750,000.
All Legal & General lifetime mortgage plans now include Downsizing Protection to all existing and previously arranged plans.
This means should you move home after 5 years following the start date of the L&G lifetime mortgage the loan can be repaid without any early repayment charge. This is so long as the property they are moving into doesn’t meet L&G’s property lending criteria.
There is no capping placed on the size of the reserve facility which means the Legal & General equity release plan has one of the highest facilities available in the equity release market. Withdrawals from the cash reserve facility have a minimum of £2,000 and come without any further admin fees.
New features included with the L&G backed lifetime mortgage has been the Optional Partial Repayment feature which allows upto 10% repayments each year based on the original amount borrowed with NO penalty. This enables management of the future balance, with payments now being possible from the first day of the plan's commencement.
Many clients opt to either repay the interest only, thus maintaining a level balance, or even take up the full 10% option & actually reduce the balance of the mortgage effectively repaying it completely over a period of approximately 15 years. You equity release adviser can check this for you, hence please call for calculations.
The Legal & General OPLM Pink Lifetime Mortgage aims to provide the lowest equity release interest rate than most other equity release plans. Therefore, should a low interest rate & maximum reserve facility be a requirement, then the L&G Optional Payment Pink Lifetime Mortgage maybe a solution.
*The L&G OPLM Pink plan is available with & without arrangement fees.
Choosing the NO arrangement fee option is available until further notice.
**selecting the 2% cashback option will increase the interest rate by 0.2%.
Call the Compare Equity Release team on 0800 028 3142 for further details or a quote on the Legal & General Optional Payment Pink Lifetime Mortgage.