Legal & General entered the equity release and lifetime mortgage marketplace in 2015 when it acquired New Life Mortgages, a former lifetime mortgage company. Legal & General offers a wide array of equity release schemes including Interest-Only lifetime mortgage plans, lump sum plans, and partial repayment lifetime mortgages.
To be eligible for the Legal & General Premier Optional Payment Black Lifetime Mortgage (OPLM), the homeowners must be between the ages of 55 and 90. The product is available on both a single and joint life basis.
The minimum loan amount available on this Premier OPLM Black product is higher than the rest of the L&G Home Finance range at £100,000, with the maximum equity release loan amount being also higher at £2 million.
The property must be located in England, mainland Scotland or Wales in order to be eligible and there is no minimum valuation applied, so long as the loan-to-value ratio allows for a minimum equity loan of £100,000. The maximum valuation threshold is £4 million, but if the property has a higher valuation, it can still be reviewed if it has been accompanied by a referral.
For flats or maisonettes, only 85% of the property value is taken into account.
This product offers a number of flexible features. The Legal & General Premier Optional Payment Black Lifetime Mortgage provides an initial tax-free lump sum payment that can be used by the homeowner immediately, with any unused portion being set aside in an uncapped cash reserve facility. A cash drawdown can be requested by the homeowner from their reserve facility at any point, with the minimum amount that can be taken being only £2,000.
There is currently the option of choosing whether to pay the application fee and the rate is a fixed equity release lifetime interest rate on the initial lump sum.
Further withdrawals from the cash reserve facility follow the interest rate that applies at the time of each withdrawal. This Premier OPLM Black product does come with a no negative equity guarantee which means that if the eventual sale of the property does not satisfy the outstanding loan balance, the beneficiaries of the estate are not left with any debt to themselves.
The L&G Premier Optional Payment Black Lifetime Mortgage provides the homeowner with numerous options. They are able to use their tax-free cash as they want and can start spending it immediately upon receipt.
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.
The homeowner also has the Optional Partial Repayment features which allows them to make up to 10% repayments of the original amount borrowed every year without incurring any penalty. The homeowner also has the option of Inheritance Protection which allows the homeowner to secure a percentage of the house value to be saved for an inheritance to loved ones.
This product is ideal for the homeowner with a larger property value & looking for one of the lowest rates available and having the facility to make monthly interest-only payments with NO proof of income required. They may also be potentially concerned about interest roll-up and maybe wishes to make repayments to have some control over the balance of their loan.
There are a number of options available to the homeowner who wants to protect an inheritance for their loved ones. Between the inheritance protection and the ability to make payments, homeowners can ensure that their beneficiaries are taken care of even after the property has been sold.
Call the Compare Equity Release team on 0800 678 5169 for further details, or to request a quote on the Legal & General Premier Optional Payment Black Lifetime Mortgage.