Legal & General Flexible Navy

Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui

Are You Considering the Flexible Navy Scheme? What are the Eligibility Requirements, Features, Interest Rates & Scheme Options? Discover If This Equity Release Plan Is For You.

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Legal & General Flexible Navy Review

Flexible Navy Key Details

Type Rate APR
Legal & General Fixed 3.7% 3.80%

Scheme Incentives

  • Cashback
  • Free Valuation
  • Free Application

Scheme Offers

  • 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 Navy, 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.

Could the Legal & General Flexible Navy be the right equity release plan for you?
We’re here to help you:
Legal & General is one of the leading equity release providers on the market and might just be the answer you’ve been looking for.
Can you truly go wrong with Legal & General?
Let’s find out!
Legal & General Flexible Navy

What’s Equity Release?

An equity release mortgage is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care. The homeowner’s family usually pays back the cash released, and the interest incurred, from the sale of the home in question.

Learn More: What’s Equity Release?

How Does Equity Release Work?

Equity release is available for individuals or couples over the age of 55, with the youngest homeowner’s age determining the amount of equity that can be released. It is important to note that some equity release schemes may require the homeowner to be 60 or older.

Learn More: How Does Equity Release Work?

We’ve summed up the most important information about the topic in this quick video.

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Most popular reasons for releasing equity

Who Are Legal & General?

Legal & General Group plc, or simply Legal & General, is a British global financial services corporation based in London. Investment management,1Â lifetime mortgages,2Â pensions, annuities, and life insurance are some of the goods and services it offers.

Scheme Background

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 Navy Lifetime Mortgage program is especially intended for people seeking one of L&G’s higher maximum equity release lump amounts. The Flexible Navy plan is simple in concept, since it allows a one-time, tax-free release of equity for the homeowner.

However, because the Navy plan may be utilized as a drawdown lifetime mortgage program, any unused amount is stored in a cash reserve facility. As a result, customers seeking a lower initial lump amount but need the maximum drawdown facility for their future expenses in retirement may be interested in the L&G Flexible Navy Plan.

Minimum Property Valuation

The required property valuation for this Legal and General Flexible Navy Lifetime Mortgage is £100,000, which is significantly more than the minimum for typical equity release plans. Outside of London, the maximum property valuation is £2 million, with homes in London allowed up to £4 million. If your valuation is greater, please call us at 0800 802 1051.

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 base its estimates on 85 percent of the current market price for flats and maisonettes.

Furthermore, if the property is leased, the number of years remaining must be at least 185.

Single vs Joint

The L&G Flexible Navy Lifetime Mortgage is offered as a single or joint life loan. The youngest homeowner must be at least 60 years old, with a usual maximum age of 90. In some cases, a person’s age of 90 or more may be appropriate.

Minimum Release

This Navy plan has a minimum borrowing of £10,000 and a maximum discharge of £750,000.

Scheme Features

The Flex Navy Plan from Legal and General provides an initial single capital lump amount with possible drawdown options. Based on age and property value, this drawdown program delivers a larger tax-free lump sum cash release than other equity release schemes. This is great for people who want to gain access to the higher end of the loan spectrum.

The Flexible Navy plan from Legal & General Home Finance has the largest maximum equity release value of any of Legal & General’s lifetime mortgage products. On this system, their loan-to-value proportion starts at 23 percent at age 55 and rises to 52.0 percent at age 85 and higher.
As a result, if you are in excellent health and want a greater maximum loan amount with the option of paying ad-hoc repayments with no income verification, the L&G Flexible Navy plan is a suitable choice.

The Flexible Navy plan is located between the Turquoise and Indigo items in the L&G Drawdown range. As a result, the Navy has a greater LTV than the Turquoise, but a higher interest rate. The opposite is true with the Navy’s Flexible Indigo plan, which has a smaller maximum lump amount but a lower interest rate.

All Legal & General plans have a Downsizing Protection 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.

Valuation Features

A generous free unlimited valuation is provided, as well as a fixed lifetime interest rate on the tax-free lump amount.

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.

Scheme Options

This Legal and General Flexible Navy Mortgage allows any homeowner to spend their tax-free money however they see fit, with no obligation to make repayments. This aids in the management of the future balance of this lifetime mortgage UK program, allowing you to decrease the roll-up impact of the interest, pay off the interest solely, or even repay the future balance over about 15 years by utilizing the maximum 10% allowed.

Repayment Options

However, one aspect of this L&G 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.

Inheritance Protection

Another Flexible Navy option for inclusion is the Inheritance Protection feature, which allows the homeowner to secure a predetermined proportion of the property’s ultimate selling value. This is critical for individuals who want to ensure a percentage of the property value from their inheritance.

Application Fees

This drawdown plan may be purchased with or without a £599 setup charge. Until further notice, the NO arrangement charge option is available.

Cashback Options

The L&G Flexible Navy 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.

Footnotes

*The three-year no-early-repayment-charge period applies to joint life policies when the loan is returned within three years of a partner’s death or long-term care.
**The shown rate includes the normal L&G application charge and no cashback.

Editor’s Rating: 4.68

Legal & General's Other Equity Release Schemes

Are you looking for a specific equity release scheme?

These are some of the schemes offered by Legal & General.

Not what you're looking for?

Have a look at all the equity release schemes available on the market, with our easy-to-use table or compare interest rates on equity release!

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

HOW MUCH EQUITY CAN YOU RELEASE?

Most people are using equity release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.

See how much you can release today!

How Much Can You Release?

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As Featured In
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rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
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Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
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Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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As Featured In
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