Legal & General Flexible Teal
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Flexible Teal Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
Fixed | 3.28% | 3.40% |
Scheme Incentives
- Cashback
- Free Valuation
- Free Application
Scheme Offers
- 3-year No Early Repayment Charge*
- Downsizing Protection Feature
- Inheritance Protection Guarantee
Legal & General Flexible Teal Review
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 Teal, equity release scheme the best?
Don’t let your equity release dream become a nightmare!
Luckily, we’re here to guide you on the in’s and out’s of equity release, as you deserve only the best.
However, 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.
- Detailed information about the Flexible Teal scheme.
- Whether this plan could be right for you and your family.
- How low the current interest rates are for the Flexible Teal product.
What's Equity Release & How Does It Work?
We've summed up the most important information about the topic in this quick video.
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.
Equity release is available for individuals or couples over 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: What’s Equity Release & How Does It Work?
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Most popular reasons for releasing equity
- Add to your retirement income.
- Pay off your credit debts or loans.
- Gifting money to family. (E.g. helping children pay a deposit on their first house)
- Paying off an existing debt.
- Going on that dream holiday.
- Replacing your car with the one you've always wanted.
- Making home & garden improvements.
Who Are Legal & General?
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 Teal Lifetime Mortgage plan is created particularly for customers seeking a mix of greater loan-to-value and competitive interest rates. The Flexible Teal plan is intended to give a one-time lump payment as well as the option of a drawdown for individuals who do not choose to accept the full lump sum up front.
It varies from the Flexible Turquoise plan, which is one rung higher up on the loan-to-value (LTV) chart, in that the Teal plan has a lower loan amount for any given age. The L&G Flexible Teal plan has one benefit over the Turquoise plan in that it offers a reduced interest rate at the price of loan size.
Minimum Property Valuation
The minimum property valuation for this Flexible Teal Lifetime Mortgage plan is £100000, with a maximum property valuation of £2m outside of London and up to £4m in London.
Property Location Requirements
The property, which must be the 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 youngest applicant at completion plus the remaining lease period must be at least 185 years old.
Single vs Joint
The L&G Flex Teal Lifetime Mortgage plan is offered in single and joint life. The youngest homeowner is 55 years old, with a usual maximum age of 90 years old.
Minimum Release
This Teal plan has a minimum borrowing of £10000 and a maximum release of £750000.
Scheme Features
Legal and General’s Flexible Teal Plan provides an initial cash lump payment, with any unused facility remaining accessible in a drawdown facility for future usage if needed. This drawdown lifetime mortgage program offers a little greater tax-free lump sum cash release than the majority of L&G Flexible plans. This is appropriate for people seeking 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 is aimed towards the higher loan-to-value end of the Legal and General Home Finance lifetime mortgage product line, yet it nevertheless offers a competitive interest rate among Legal and General Home Finance lifetime mortgage products. As a result, if you’re searching for a larger loan size with a cheap interest rate, the L&G Flexible Teal plan rates well.
Legal & General has a Downsizing Protection provision in all of its plans, which means that if your plan has been active for at least 5 years and you are relocating to another home that does not match L&G’s lending standards, the loan can be returned without penalty.
Valuation Features
A generous free unlimited valuation is provided, as well as a fixed lifetime interest rate on the tax-free lump amount.
Early Repayment Feature
Legal and General’s Flexible Teal Plan updates are still in the works. We will give an update soon.
Equity Release Council Status
Because Legal & General Home Finance is a member of the Equity Release Council, all of its programs are guaranteed to have no negative equity. 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
The L&G Flex Teal Lifetime Mortgage plan is offered in single and joint life. The youngest homeowner is 55 years old, with an usual maximum age of 90 years old.
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 Teal Lifetime Mortgage allows any homeowner to spend their tax-free money however they see fit, with no need to make repayments. The L&G Teal plan, on the other hand, includes the Partial Repayment Option, which allows the plan user to begin making up to 10% repayments of the initial amount borrowed each year with NO penalty or income verification. This helps manage the future balance of this lifetime mortgage UK program, either to decrease the interest roll-up impact, pay off the interest-only, or even repay the future sum over 15-16 years by utilizing the maximum 10% allowed.
Repayment Options
This Legal and General Flexible Teal Lifetime Mortgage allows any homeowner to spend their tax-free money however they see fit, with no need to make repayments.
Inheritance Protection
Another Flexible Teal option is the Inheritance Protection feature, which allows the homeowner to protect a predetermined proportion of the property’s final 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 is available with or without a £599 startup fee. The NO arranging charge option is available till further notice.
Cashback Options
This drawdown plan may be purchased with or without a £599 setup charge. Until further notice, the NO arrangement charge option is available.
Footnotes
*The three-year no-early-repayment-charge period applies to joint life plans when the loan is returned within three years of a partner’s death or long-term care.
** The shown rate includes the usual L&G application charge but no cashback.
Legal & General's Other Equity Release Schemes
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Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui
What people say
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.
Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui
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