Legal & General Optional Payment Violet
Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui
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Legal & General Optional Payment Violet Review
Optional Payment Violet Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
Fixed | 4.59% | 4.8% |
Scheme Incentives
- Free Valuation
- Free Application
- Cashback
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 Optional Payment Violet, 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 Optional Payment Violet 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 Optional Payment Violet product.
What’s Equity Release?
An equity release mortgage (see What’s Equity Release?) 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.
We’ve summed up the most important information about the topic in this quick video.
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 Optional Payment Violet Lifetime Mortgage (OPLM) is designed for people who want to make monthly interest payments for a certain period of time, such as a fixed term or for the life of their mortgage. This item is only available for a short time.
Within Legal & General’s interest-only mortgage range, this Optional Payment Violet Plan offers the highest interest rate and loan-to-value. To assist control the amount, the OPLM Violet plan provides the discipline of fixed interest monthly installments.
A requirement of the new Violet Lifetime Mortgage programs is that an initial advance of 80% of the maximum loan-to-value (LTV) be made. As a result, the maximum withdrawal facility is just 20% of the maximum loan-to-value.
Minimum Property Valuation
This Optional Payment Violet Lifetime Mortgage requires a minimum property worth of £100000. The maximum property value is set at £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
Optional Payment for L&G Violet Lifetime Mortgage is available on both a single and joint life basis. The youngest homeowner is 55 years old, with an usual maximum age of 90 years old.
Minimum Release
The minimum loan amount for this OPLM Violet plan is £10000 (80 percent of the maximum loan amount must be accepted upfront), with a maximum release of £750000.
Scheme Features
Optional Payment from Legal & General Violet Plan is an interest-only lifetime mortgage plan that gives a large initial tax-free lump sum cash release for immediate usage, with any remaining unused funds held in an unlimited cash reserve facility. This is excellent for people who want to borrow a larger lump sum with no evidence of income and want to control the balance by making monthly repayments while also having access to future cash if needed.
The Optional Payment Indigo Plan also has the greatest withdrawal facility among the OPLM options. If the maximum release is not used right away, drawdown is an option. As a result, any unused cash is kept in an unlimited cash reserve facility. This is great for people who want to have access to a larger sum of money in the future while still being able to make monthly payments. The minimum withdrawal from the cash reserve facility is £2,000, and there are no administrative fees. Any additional cash withdrawals would be subject to the interest rate in effect at the time of withdrawal.
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 the 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, upon ultimate sale of the property, any beneficiaries cannot be left with a debt to the equity release provider in excess of the property value.
Joint Application Features
Optional Payment for L&G Violet 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.
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 Optional Legal and General Payment Violet Lifetime Mortgage allows homeowners to spend their tax-free money as they choose and gives them the option of paying some or all of their monthly interest back to L&G via direct debit.
These monthly repayments might range from a minimum of £25 per month to 100 percent of the interest paid by the lender each month. This aids in the management of the future balance of this lifetime mortgage UK program. Choosing to pay 100 percent of the interest charged can assist keep a level balance, but paying off a smaller amount will slow down any interest roll-up. This Flexible OPLM Violet plan has the extra benefit of not requiring evidence of income or affordability checks.
Personal circumstances may necessitate the cessation of monthly payments at any moment. In such cases, the plan will revert to a roll-up model, with interest accumulating each year after that. Even if monthly payments are no longer made, the L&G Optional Partial Repayment option becomes accessible, allowing up to 10% of the initial loan amount to be returned each year with no penalty. L&G permits four repayments in each 12-month period, each of which must be a minimum of £500. These payments do not exclude access to any potential drawdown facility.
Repayment Options
The plan is best suited to residential interest-only mortgagees who have no repayment strategy and want the greatest maximum amount for mortgage settlement, or homeowners who want to release equity but are concerned about the interest accumulating throughout their lifetime.
Inheritance Protection
Another possibility for inclusion is the Inheritance Protection function, which allows a homeowner to secure a predetermined proportion of the property’s final sale value. This is critical for individuals who want to ensure a percentage of the property value from their inheritance.
Footnotes
*The 3-year no-early-repayment-charge period applies to joint life policies when the loan is repaid within 3 years of a partner’s death or long-term care.
** An initial advance of 80% of the maximum loan-to-value (LTV) is required. As a result, the highest permissible drawdown facility is 20% of the maximum LTV.
***Plans are available with and without an arrangement charge – rates are given with the application cost and there is no rebate.
Legal & General's Other Equity Release Schemes
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