Legal & General Flexible Turquoise
Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui
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Legal & General Flexible Turquoise Review
Flexible Turquoise Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
Fixed | 3.2% | 3.30% |
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 Turquoise, 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.
- We'll provide detailed information about the Flexible Turquoise scheme.
- We’ll help you assess whether this plan could be right for you and your family.
- We'll explain how low the current interest rates are for the Flexible Turquoise product.
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
- Boosting retirement income.
- Paying off credit debts or loans.
- Gifting money to family. (E.g. To help children pay a deposit on their first house)
- Taking a trip of a lifetime.
- 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 Turquoise Lifetime Mortgage plan is created particularly for people seeking a mid-range equity release interest rate, good loan-to-value ratios, and the flexibility of an optional payback arrangement. It has a higher maximum release than its Flexible Yellow and Green equivalents, but at the cost of a somewhat higher interest rate.
Minimum Property Valuation
The minimum property valuation for this Flexible Turquoise Lifetime Mortgage is £100,000, with an ex-council property valuation of £100000. 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 the 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 minimum number of years left on the lease must be at least 185 years.
Single vs Joint
The L&G Flexible Turquoise 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.
Minimum Release
This plan has a minimum borrowing of £10000 and a maximum release of £750000.
Scheme Features
Legal and General’s Flexible Turquoise 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 Turquoise 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 people who want future access to cash drawing quantities at a competitive equity release interest rate. The minimum withdrawal amount from the cash reserve facility is only £2000, and there are no admin fees for any additional drawdowns.
All of Legal & General’s plans offer Downsizing Protection. Downsizing Protection in the L&G version implies that anybody moving house after 5 years from the plan start date can return the loan with no early repayment penalty, 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 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.
Equity Release Council Status
Legal & General is a member of the Equity Release Council, thus 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
The L&G Flexible Turquoise Lifetime Mortgage is offered as a single or joint life loan. 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 Turquoise Lifetime Mortgage allows homeowners to spend their tax-free money however they see fit, with no need to make repayments. One aspect of the L&G Turquoise plan, however, is the Partial Repayment Option, which allows the plan user to begin making up to 10% repayments of the original amount borrowed each year with no penalty. This assists in managing the future balance of the lifetime mortgage UK plan, either to decrease the roll-up impact of the interest, pay off the interest-only, or even to lower the future balance by utilizing the entire 10% allowed.
Inheritance Protection
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.
Application Fees
The L&G Turquoise Plan comes with and without an arrangement charge. Until further notice, there is no arrangement cost option available.
Cashback Options
The Flexible Turquoise 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.
Footnotes
*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.
Legal & General's Other Equity Release Schemes
Are you looking for a specific equity release scheme?
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?
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