Legal & General Flexible Blue
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Legal & General Flexible Blue Scheme Review
Flexible Blue Key Details
I think you’ll agree with me when I say:
It’s REALLY hard to choose the best equity release scheme with all the choices available.
Or is it?
Is the Legal & General Flexible Blue, equity release scheme the best?
Don’t let your equity release dream become a nightmare!
Luckily, we’re here to guide you on the ins and outs of equity release, as you deserve only the best.
However, it’s important to remember that not all plans are suited to each individual. You need to look for one that will serve your home, your lifestyle, and the reason why you’re considering equity release in the first place.
As leading experts in the field, we’ve delved into hours of research, unpacked all the equity release plans on the market (we’ve reviewed over 250 schemes!), and discovered the best in the business.
Let’s find out!
Who Are Legal & General?
Legal & General (L&G) Home Finance leads the post retirement lending market with a range of equity release schemes. They offer flexible drawdown lifetime mortgage plans & high maximum lump sum plans, all with the control measure of a 10% partial repayment function.
Legal & General entered the equity release market in 2015 after acquiring lifetime mortgage company, New Life Mortgages. This enabled them a quicker route to market with immediate permissions, whilst at the same time obtaining PRA & FCA regulatory approval.
Constantly innovating Legal & General has more equity release plans in store with ambitious targets to grow the market significantly over the forthcoming years.
Eligibility & Requirements
The Legal & General Flexible Blue Lifetime Mortgage plan is especially intended for people interested in the higher loan-to-value end of the market, where the highest equity release lump amounts become available. The Flexible Blue plan, which was originally created as a one-time lump sum program, now allows for drawdown for people who do not choose to receive the entire amount all at once.
It varies from the Flexible Indigo in that the maximum loan size it may generate is less. The L&G Flexible Blue plan, on the other hand, offers a lower interest rate at the expense of the loan size given by the Flexible Indigo scheme.
Minimum Property Valuation
The minimum property valuation applicable to this Flexible Blue Lifetime Mortgage plan is £100,000, with a figure of £100,000 for ex-council properties. The maximum property valuation outside London is £2m, with properties in London being acceptable upto £4m. Please contact us on 0800 802 1051 if your valuation is higher.
Property Location Requirements
The property, which must be a primary residence, must be located in England, Wales, or mainland Scotland.
Legal and General will only calculate the value of flats and maisonettes based on 85 percent of their current market value.
Furthermore, if the property is leased, the minimum number of years remaining must be at least 185.
Single vs Joint
The L&G Flex Blue Lifetime Mortgage plan is offered as a single or joint life loan. The average age of the youngest homeowner is 55, with a typical maximum age of 90. In some cases, a person’s age of 90 or more may be appropriate.
This Blue plan has a minimum borrowing of £10,000 and a maximum release of £750,000.
Legal and General’s Flexible Blue Plan provides an initial cash lump payment, with any unused facility remaining accessible in a drawdown facility for future use, if needed. This drawdown lifetime mortgage package offers a greater tax-free lump sum cash release than most other plans. This is suitable for people looking for access to either a big initial release with a lower drawdown capacity, or a smaller initial amount with a greater drawdown facility owing to future equity release needs.
This drawdown plan has one of the largest potential equity release amounts available among all Legal and General Home Finance lifetime mortgage programs. As a result, if you are in excellent health and seeking for a larger maximum loan amount with the flexibility of making ad-hoc repayments with no income verification and a drawdown option, the L&G Flexible Blue plan scores well.
All Legal & General plans have a Downsizing Protection feature.
A generous free unlimited valuation is provided, as well as a fixed lifetime interest rate on the tax-free lump amount.
Early Repayment Feature
Downsizing Protection with L&G implies that anybody moving home after 5 years from the plan start date can return the loan with no early repayment fee, as long as the property they are moving into does not match L&G’s lending standards.
Equity Release Council Status
Because Legal & General Home Finance is a member of the Equity Release Council, all of their programs have a no-negative-equity guarantee. As a result, if the property is eventually sold, no beneficiaries will be left with a debt to the equity release business.
Joint Application Features
There is an additional protection provision for the plan’s last survivor for joint applicants.
If one of the homeowners dies or moves into care, the remaining spouse has the option of repaying the lifetime mortgage with no penalty within three years of the occurrence.
This Legal and General Flexible Blue Lifetime Mortgage allows any homeowner to spend their tax-free money however they see fit, with no obligation to make repayments.
The Flexible Blue Lifetime Mortgage Plan also includes the option to get a 2% payback dependent on the amount borrowed. This results in a 0.2 percent increase in the equity release interest rate.
However, one aspect of the L&G Blue plan is the Partial Repayment Option, which allows the planholder to begin repaying up to 10% of the original amount borrowed each year with NO penalty or income verification. This aids in the management of the future balance of this lifetime mortgage UK program, allowing you to decrease the interest roll-up impact, pay off the interest solely, or even repay the future sum over 15-16 years by utilizing the maximum 10% allowed.
Another Flexible Blue option is the Inheritance Protection function, which allows the homeowner to protect a predetermined proportion of the property’s final sale value. This is critical for individuals who want to ensure a percentage of the property value from their inheritance.
This drawdown plan may be purchased with or without a £599 setup charge. Until further notice, the NO arrangement charge option is available.
*The 3-year no-early-repayment-charge period applies to joint life plans when the loan is repaid within 3 years of a partner’s death or long-term care.
** The shown rate includes the normal L&G application charge and no cashback.
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