Legal & General Flexible Yellow
Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui
Before You Start Reading...
Let's See How Much You Can Release 👇
Now, compare and save: Search over 200 equity release council approved plans and find the best deal for the amount of money that you need.
Legal & General Flexible Yellow Review
Flexible Yellow Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
Fixed | 3.11% | 3.20% |
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 Yellow, 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 Yellow 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 Yellow 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.
How Much Can You Release?
Use the FREE Calculator 👇
It's VERY FAST and, takes just 8 seconds
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 Yellow Lifetime Mortgage plan is tailored to individuals seeking one of the lowest equity release interest rates combined with the flexibility of a lifetime drawdown scheme. It has a greater maximum release than the Pink Plan, but at the cost of a somewhat higher interest rate.
Minimum Property Valuation
The minimum property valuation for this Flexible Yellow Lifetime Mortgage is £100000, 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.
Single vs Joint
The L&G Flexible Yellow Lifetime Mortgage is offered in single and joint life. The youngest homeowner is 55 years old, with an usual maximum age of 90 years old.
Minimum Release
This Yellow plan has a minimum borrowing of £10000 and a maximum release of £750000.
Scheme Features
The Flexible Yellow Plan from Legal & General is a drawdown lifetime mortgage program. This drawdown plan offers a tax-free lump sum cash release for immediate usage, with any leftover unused funds held in an unlimited cash reserve facility. This plan is appropriate for people who want a bigger cash withdrawal limit than the Flexible Pink plan but with a slightly higher equity release interest rate than the Pink plan. The minimum withdrawal amount from the cash reserve facility is simply £2000, and there are no admin fees for any extra withdrawals.
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.
Early Repayment Feature
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.
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 Yellow Lifetime Mortgage 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 Yellow Drawdown Mortgage allows any homeowner to spend their tax-free money however they see fit, with no obligation to make repayments. The Partial Repayment Option, however, is a provision of the L&G Yellow plan that allows the plan user to begin making up to 10% repayments of the initial amount borrowed each year with no penalty. This assists managers in controlling the future balance of the lifetime mortgage UK plan, either by reducing the roll-up impact of the interest, paying off the interest-only, or even reducing the future amount 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
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
A last option with the Flexible Yellow Lifetime Mortgage Plan is to get a 2% rebate 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 advertised interest rate includes a £599 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?
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!
