Legal & General Flexible Indigo
Before You Start Reading...
How Much Can You Release? 👇
Legal & General Flexible Indigo Scheme Review
Flexible Indigo Key Details
- Free Valuation
- Free Application
- Inheritance Protection Guarantee
- 3-year No Early Repayment Charge*
- Downsizing Protection Feature
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 Indigo, 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 Indigo Voluntary Repayment Lifetime Mortgage is created particularly for customers seeking the largest equity release lump amount possible through L&G. The Flexible Indigo plan is simple in design, as it provides an initial single tax-free release of equity. If the maximum release is not used, any unused allowance is stored in a cash reserve facility for future use if necessary.
The L&G Flexible Indigo plan varies from the Flexible Navy and Blue plans in that the Indigo’s maximum loan size is larger. Because it has a greater loan-to-value ratio, the L&G Flexible Indigo optional payment plan has a higher interest rate than its Flexible Navy and Blue equivalents.
Minimum Property Valuation
The minimum property value for this Flexible Indigo Lifetime Mortgage is £100,000, with an ex-council property valuation of £100,000 as well.
Outside of London, the maximum property valuation is £2 million, with homes in London allowed up to £4 million.
Property Location Requirements
The property, which must be a primary residence, must be located in England, Wales, or mainland Scotland.
Legal & 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 Flexible Indigo Lifetime Mortgage is offered as a single or joint life loan. The youngest homeowner is 55 years old, with a usual maximum age of 90 years old. In some cases, a person’s age of 90 or more may be appropriate.
This plan has a minimum borrowing of £10,000 and a maximum release of £750,000.
Legal and General’s Flexible Indigo Plan is a lifelong mortgage with optional repayments. This permits the homeowner to make voluntary repayments of at least £500 to Legal & General, with the major benefit being that no evidence of income is required. As a result, for people who are unable to acquire traditional residential mortgages, voluntary repayment plans provide a non-verification mortgage option.
The Indigo Plan gives an initial tax-free lump sum cash release for immediate use as a drawdown, with any leftover unused funds held in an unlimited cash reserve facility. This is perfect for individuals seeking future access to substantial cash withdrawal amounts at one of the lowest equity release interest rates available. The minimum withdrawal amount from the cash reserve facility is £2,000, and there are no admin fees for any subsequent drawdowns.
All Legal & General plans have a Downsizing Protection feature.
A generous free unlimited valuation is provided, as well as a set lifetime interest rate on the original lump amount. Any subsequent withdrawals would be subject to the interest rate in effect at the time of withdrawal.
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
Legal & General is a member of the Equity Release Council, therefore all of its plans include a no-negative-equity guarantee. As a result, if the property is eventually sold, any beneficiaries cannot be left with a debt to the equity release provider.
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 Indigo Lifetime Mortgage allows homeowners to spend their tax-free money however they see fit, with no need to make repayments. This assists in managing the future balance of the lifetime mortgage UK plan, whether to decrease the roll-up impact of the interest, pay off the interest alone, or even lower the future balance by utilizing the entire 10% allowed.
However, one aspect of the L&G Indigo plan is the Partial Repayment Option, which allows the planholder to begin repaying up to 10% of the initial amount borrowed each year without penalty.
Another possibility for inclusion is the Inheritance Protection function, which allows the homeowner to secure a predetermined proportion of the property’s ultimate sale value. This is critical for individuals who want to ensure a percentage of the property value from their inheritance.
The L&G Indigo Plan is offered with and without an arrangement charge. Until further notice, there is no arrangement cost option available.
The Flexible Indigo Lifetime Mortgage Plan has the option of receiving a 2% return dependent on the amount borrowed. This results in a 0.2 percent increase in the equity release interest rate.
*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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