Legal and General acquired the equity release business operation of NewLife. As such there have been several improvements and enhancements made to the range of lifetime mortgage products offered by the newly named Legal and General Home Finance. One of these changes has been an increase in flexibility with products, including the Newlife Flexible Plus Lifetime Mortgage. This increased level of flexibility, along with lower interest rates, has made this product very appealing to homeowners looking for a lifetime mortgage product.
This product does have slight variations from the Newlife Flexible Lifetime Mortgage. To start, this product does have a slightly higher interest rate than the Legal & General Flexible Plan. However, it also offers a refunded valuation fee and allows for a higher maximum loan amount. This means that this product is best for those homeowners who are more interested in releasing more equity, rather than having a low interest rate.
In order to qualify for the Legal & General Flexible Plus Lifetime Mortgage, the homeowner must be at least 60 years old and cannot be older than 90 years old, although this can be subject to referral. The property must have a minimum valuation of £100,000 (£150,000 for eex-council houses) and must be located in Wales, mainland Scotland, or England. Legal & General will now consider properties value over £4 million, subject to referral.
The homeowner must release a minimum of £10,000 in their initial release. The L&G Flexible Plus Lifetime Mortgage does provide for future withdrawals on an as-needed basis. These subsequent withdrawals must be released in minimum amounts of £2,000 with no admn charges for these drawdown payments.
This product offers several other unique features aside from the cash reserve. To start, homeowners are able to make optional partial repayments in the amount of 10% with no early repayment fees. These payments can be made following the first anniversary of the original release. The homeowner can therefore carefully manage the future equity release balance & prevent any compounding effect of interest normally associated with roll-up equity release schemes.
This product is also offered on a single and joint basis and has a maximum loan amount of £750,000, but L&G will consider suitable properties over this amount subject to referral. The Flexible Plus Lifetime Mortgage offered by Legal and General Hoem Finance also boasts some of the highest loan to value amounts in the equity release marketplace. Lastly, the product does offer an inheritance protection for those homeowners who want to leave some kind of inheritance behind for their loved ones. Each of these features gives the homeowner not only flexibility but a great deal of control over their loan and their repayment. With the ability to make repayments, the homeowner is ultimately able to control what they owe on their loan while also managing their ability to leave behind an inheritance.