Contributors:
Expert VerifiedKey Takeaways
- Legal & General offers equity release schemes for homeowners aged 55 and up, providing a lucrative path to unlock the equity tied up in their property for immediate financial use.
- With competitively fixed interest rates, they ensures that borrowers can confidently plan their finances without worrying about fluctuating costs.
- Their lifetime mortgage plans offer the flexibility to repay the loan from the estate when the homeowner either passes away or moves into care, safeguarding the property during the owner’s lifetime.
- They design their products with inheritance protection features, allowing customers to earmark a portion of their estate for their heirs.
- The company emphasizes the necessity of independent financial advice, ensuring that all potential borrowers fully understand their options and the implications for their financial future.
Legal & General equity release is on the rise, with retirees releasing over £4.8bn1 from their homes in 2021 alone.
Could you do with the extra cash to help you through retirement or do you need the funds to plan your ultimate bucket-list holiday?
With many equity release products available on the market today, it’s difficult to know where to start.
That’s why, as equity release experts, we’ve spent countless hours researching these plans for you.
Our aim is to bring you the most comprehensive and current information to ensure the decision-making process is that much easier.
This article explores the following topics, drawing on our expertise in the field:
Let’s find out if Legal & General will be your perfect match…
COMMENT: TimeBank.org.uk is an unconnected third-party data provider via this medium, and the reproduction in this piece represents the views of TimeBank.org.uk only and may not replicate the observations of Legal&General. This article is not to be classified by the user as instruction, nor is it a recommendation to transact any financial product offered by Legal&General.
Request a FREE call back discover:
- Who offers the LOWEST rates available on the market.
- Who offers the HIGHEST release amount.
- If you qualify for equity release.
Who’s Legal & General?
Legal & General was established in 18362, and is now one of the UK’s leading financial service groups.
It’s increasing its presence in the US and globally to improve the lives of its customers and build a better society.
Among its products and services are investment management, lifetime mortgages, pensions, annuities, and life insurance.
Why You Should Consider Legal & General
You should consider Legal & General for your equity release requirements as it has been around for over 200 years, and is a multi-award-winning company.
Some of the most recent awards3 it’s received include:
- Mortgage Finance Gazette Awards 2022 – Best Lifetime Mortgage Lender.
- Mortgage Solutions Award 2022 – Best Overall Provider of Lifetime Mortgages.
- Mortgage Strategy Awards 2021 – Best Equity Release/Lifetime Lender.
- Your Mortgage Awards 2021 – Best Later Life Lender.
- The Mortgage Awards 2020 – Later Lifetime Lender of the Year.
- Mortgage Strategy Awards 2020 – Best Equity Release Provider/Lifetime Lender.
What Services Does Legal & General Offer?
Legal & General offers services such as lifetime mortgages, investment management, and more.
Here is a complete list of the services it offers:
- Investment management
- Pensions
- Lifetime mortgages
- Annuities
- Life assurance
Does Legal & General Offer Equity Release?
Yes, Legal & General offers equity release in the form of a lifetime mortgage.
A lifetime mortgage enables you to access the money tied up in your home as a tax-free amount.
You can either access all of the money at once or release it in smaller amounts over a period of time.
The good news is you won’t have to sell your home or move out to get your hands on the cash.
The even better news is that you won’t be required to make any payments until you move into permanent care or pass away.
Legal & General’s Equity Release Schemes
Legal & General’s equity release schemes consist of a Flexible Lifetime Mortgage and an Optional Payment Lifetime Mortgage.
Let’s have a look at each of these.
Flexible Lifetime Mortgage
The Flexible Lifetime Mortgage allows you to borrow a tax-free amount of money against the value of your home without being required to make any repayments during your lifetime.
You can access the money as one lump sum or access smaller amounts of money as and when required.
Be careful though! Interest on the loan accrues over time, so the amount you owe will increase rapidly.
Accrued interest is calculated on the principal loan plus any unpaid interest.
Optional Payment Lifetime Mortgage
The Optional Payment Lifetime Mortgage enables you to borrow a tax-free amount of money against the value of your home as one lump sum or smaller amounts over a period of time.
It works in much the same way as the Flexible Lifetime Mortgage, with the difference of allowing you to make monthly interest repayments which will reduce the final amount owed.
Legal & General’s Equity Release Scheme Features
Legal & General’s equity release schemes feature a no negative equity guarantee, the option of inheritance protection, and depending on the plan you choose, the option to make interest-only payments every month.
What Are Legal & General’s Equity Release Interest Rates?
Legal & General’s equity release interest rates range from 4.2% to 7%.
View the interest rates on equity release here.
The actual rate you’ll be given depends on your particular circumstances – including your age and the loan-to-value (LTV) ratio.
The interest rate on its lifetime mortgages is fixed, meaning that it’ll remain the same for the duration of the agreement period.
Interest is calculated on a compounding basis, which means the interest rate is computed on both the principal and any interest already accrued.
The amount you owe is calculated daily, so it will rapidly increase.
This reduces the equity in your home over time.
This is especially true if you take out a loan earlier in your retirement and live for a long time afterwards.
*While we regularly review our rates, these may have shifted since our last update.
What Are Legal & General’s Fees?
Legal & General’s fees include arrangement fees, solicitor fees, and interest rates.
Let’s take a closer look at these.
*The features mentioned and the amounts raised, are subject to the lender’s criteria, terms and conditions. These may take into account the age, health and lifestyle factors in order to provide an enhanced amount.
Arrangement Fees
An arrangement fee or application fee is charged at £599 on certain products, whilst on others, there’s no charge at all.
On completion, you’ll also be charged £30 for transferring funds to your solicitor.
These costs aren’t payable until your mortgage is finalised, and the funds are released.
Solicitor Fees
Once you’re satisfied with your lifetime mortgage plan, the next step is to appoint a solicitor that specialises in equity release to act on your behalf.
These fees vary considerably, but typically fall around the £650 mark.
It’s worth looking for competitive rates as they vary across the market.
Interest Rates
The interest rates charged on your loan are fixed for the whole term and compounded over time.
This means that any unpaid interest is added to the loan each month, and so the loan continues to grow for the whole term.
Your circumstances will determine your actual interest rate.
View the interest rates on equity release here.
Does Legal & General Have An Equity Release Calculator?
Yes, Legal & General does have an equity release calculator.
To work out how much you could unlock from your home, you’ll need to enter the following information:
- The age of the youngest borrower
- Your address.
- The estimated value of your home
- The amount you would like to borrow
Consider using our lifetime mortgage calculator to get a comparative estimate and an unbiased result.
What Are The Advantages & Disadvantages of Legal & General
The advantages of Legal & General are that it’s a well-established financial service provider with a proven track record, it doesn’t charge for advice, and it offers inheritance protection on its plans.
Legal & General equity release disadvantages include compounding interest rates, early repayment charges, and reduced inheritance.
Let’s look at more pros and cons.
Legal & General Pros
The Legal & General Pros include being a member of the Equity Release Council4.
Let’s see what else counts in its favour:
- A well-established lender with almost 90,000 customers.
- Financial advice is given free of charge.
- The option to receive your money as a lump sum or in smaller instalments.
- Early repayment possibilities on specific plans.
- Option to add inheritance protection.
- No negative equity guarantee.
- Equity Release Council member.
Legal & General Cons
Legal & General cons include compounding interest rates and reduced inheritance.
Let’s take a closer look:
- Compounding interest rates add up quickly.
- Early repayment fees may be charged on specific plans.
- The inheritance you leave behind will be reduced.
- You could disqualify yourself from receiving state benefits.
- Equity Release may not be suitable for everyone, which is why your advisor will ask you to consider other options before proceeding.
- Equity Release can be a considerably high cost form of borrowing if interest rolls up due to compounding. However, all plans allow you to make repayments so that you can control the roll up of interest.
- You may want to discuss the option of equity release with your loved ones, to make them aware that it’s something you’re considering.
How Did We Review the Info on Legal & General?
We spent hours gathering all available information on Legal & General and the products it offers so that we can give you the most credible information about it.
Legal & General Customer Reviews
Legal & General reviews are mixed across various platforms.
Many people have taken to these review sites to voice their below-standard customer service experiences.
However, it’s good to note that each and every bad review has been responded to by Legal & General in an attempt to resolve the matter.
Here are ratings from the top review sites:
Legal & General Complaints
Legal & General complaints can be lodged by email, letter, or phone.
For any equity release related complaints, you can contact the retirement department on the below contact details:
- Email: customerservices@landghomefinance.com
- Letter: Legal & General Home Finance, PO BOX 17225, Solihull B91 9US.
- Phone: 03330 048 444 Option 2, Option 1, 9am to 5pm, Monday to Friday. Phone calls may be monitored and recorded.
Legal & General FCA Details
Trading Names
Legal & General Home Finance Limited
FCA Permitted Services
- Banking
- Insurance
- Consumer Credit
- Pensions
- Investments
Regulators
Registration Numbers
- FCA Ref Number: 303418
- FCA Reg Number: 04896447
FCA & Companies House Link
- FCA Link: FCA Link
- Companies House Link: Companies House Link
Legal & General Contact Number & Address
- +44 033 3004 8444
- enquiries@landghomefinance.com
- 4th Floor, Chadwick House, Warwick Road, Solihull, West Midlands B91 2AA.
In Conclusion
Legal & General Equity Release has earned its position as a household name in the finance industry.
With over 200 years behind it and over £1 trillion in assets, it’s a company that deserves your consideration.
Since its inception, the company has strived to improve the lives of its customers and build a better society.
Despite its track record, however, we highly recommend seeking independent professional advice in order to determine if Legal & General equity release is the best solution for you.
