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Legal and general equity release

Unlock the Value of Your Home with Legal & General's Equity Release Scheme

Overview of Equity Release by Legal and General

Equity release is a growing option for homeowners in the UK, allowing them to access money tied up in their property. Legal and General is a leading provider of equity release solutions, helping customers across the nation unlock the cash they need to enjoy a comfortable retirement. In this article, we will explore the products and services that Legal and General has to offer, providing an overview of the options available.

What is Equity Release?

Equity release is a way of accessing the cash tied up in your home without having to sell it or take out a mortgage. This can be done through a lump sum payment or regular payments for life. In exchange for releasing the cash tied up in your home, you will typically be charged an interest rate on the balance outstanding. The money you receive from equity release is not subject to tax.

Legal and General Equity Release Products

Legal and General offers a range of equity release products to suit different customer needs. These include:

• Lifetime Mortgage: This allows customers to borrow a one-off lump sum, or regular payments for life, against the value of their home. Customers must make sure that they can afford the repayments as the amount owing can increase over time.
• Home Reversion Plan: This allows customers to sell part or all of their home to Legal and General in exchange for a lump sum payment or regular income. The customer retains the right to remain in their home for life, provided that they abide by the terms of the agreement.
• Drawdown Mortgage: This is similar to a lifetime mortgage, but allows customers to take out smaller amounts at different times over a period of time. This allows them to only pay interest on the amount they have taken out.

Pros and Cons of Equity Release with Legal and General

Equity release may be suitable for some customers, but there are a number of potential drawbacks that should be considered before taking out such a product. Here are some of the pros and cons associated with equity release with Legal and General:

Pros:

• Can provide extra money to help enjoy retirement or cover expenses.
• No need to sell your home or take out a mortgage.
• Interest rates are usually competitive.
• Can be used to supplement existing pension income.

Cons:

• The amount owed can increase over time.
• The customer may need to pay fees or set-up charges.
• The amount released may be subject to Inheritance Tax.
• The customer may be unable to move if their circumstances change.

Conclusion

Equity release is becoming increasingly popular among UK homeowners looking to access money tied up in their property without having to move house or take out a mortgage. Legal and General offers a range of equity release products which can provide customers with additional funds to enjoy retirement or cover expenses. However, customers should consider all aspects of equity release, including any fees or charges, interest rates, repayment requirements and ccurrent financial circumstances and any potential tax implications.

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Equity Release – Legal and General

Legal and General's equity release scheme offers homeowners aged 55 and over the opportunity to unlock some of the wealth stored in their property. It is a popular option for those looking to gain access to a lump sum of money and supplement their income during retirement, or meet unexpected costs. This article looks at the ins and outs of the scheme, with a focus on understanding the key features, eligibility criteria, current financial circumstances and any potential tax implications.

What Is Equity Release?

Equity release is a way for people who own their own home to unlock some of the value stored in it. It involves taking out a loan secured against your property, which you don't have to start repaying until you either die or move out of your home. The two most common types of equity release are lifetime mortgages and home reversion plans.

Eligibility Criteria For Legal and General Equity Release

To be eligible for Legal and General's equity release scheme you must:

• Be aged 55 or over
• Own your own home in England, Scotland or Wales
• Have enough equity in your property to cover the loan amount

Key Features Of Legal and General Equity Release

Legal and General's equity release scheme has several key features:

• A lump sum of up to 40% of the value of your home (subject to age and health)
• No monthly repayments – the loan will only be repaid upon death or when you move out of your home
• You can keep ownership of your home
• The money is tax-free
• You can use the money however you wish
• The loan can be repaid at any time without penalty

Tax Implications Of Equity Release

It is important to note that while money released through equity release is usually tax-free, it could potentially be liable for capital gains tax if it is not spent within two years. If you are considering releasing equity from your home it is important to speak to an independent financial advisor about the potential tax implications.

Summary

Legal and General's equity release scheme offers those aged 55 and over the opportunity to unlock some of the wealth stored in their property. The two most common types of equity release are lifetime mortgages and home reversion plans. Eligibility criteria includes being aged 55 or over, owning a home in England, Scotland or Wales, and having enough equity in the property to cover the loan amount. Key features include a lump sum of up to 40% of the value of the home, no monthly repayments and the money being tax-free. It is important to note that while money released through equity release is usually tax-free, it could potentially be liable for capital gains tax if it is not spent within two years.

Equity Release Considerations

When considering Equity Release, it's important to bear in mind the following:

• It is important to consider whether you will be able to afford the repayments and how much you will owe at the end of the term.
• You must understand that taking out an Equity Release product could affect your eligibility for state benefits.
• You need to be aware of any tax implications.
• Any outstanding mortgage or loan secured on the property must be paid off before Equity Release can be considered.
• Any other debts should be taken into consideration before deciding to go ahead with Equity Release.

Legalities of Equity Release

Legal and General Equity Release products are subject to certain regulations and legislation. The Financial Conduct Authority (FCA) regulates the sale of Equity Release products and has produced a set of guidelines for lenders. These ensure that customers are not placed at risk when taking out an Equity Release product. They also ensure that customers are provided with clear information about the costs and risks associated with Equity Release.

Summary

Equity Release can be a useful way to access the money tied up in your home. However, it is important to seek professional advice before committing to any Equity Release product. A qualified financial advisor can help to ensure that you make the right decision.

Legal and General Equity Release products are regulated by the FCA, ensuring customers are provided with clear information about the costs and risks associated with Equity Release. Before taking out a product, you should consider your current financial circumstances and any potential tax implications.

What Should I Consider Before Releasing Equity?

Before you decide to take out an equity release plan, it is important to consider a range of factors. Some of the most important things to consider include:

• Your age and health – you must be 55 or over to qualify for an equity release scheme in the UK, and your health must be assessed as good enough to ensure that you are likely to live long enough to benefit from the plan.
• The value of your home – depending on the plan you choose, you may be able to release up to 60% of the value of your property.
• Your current financial situation – you should consider whether you need the money now, or if it would be better to save up for the future.
• The type of plan you choose – there are a range of different plans available, so make sure you pick one that suits your individual needs.
• Any tax implications – some plans may have tax implications, so it is important to check this before you make any decisions.
• Any potential fees – some plans may come with fees such as arrangement fees, legal fees and more, so it is important to check these before signing up.
• Your heirs – if you choose to take out a lifetime mortgage, the loan will need to be paid back when you pass away, and this could impact your heirs.

It is also important to seek independent advice from a qualified financial advisor before committing to any equity release plan.

Types of Equity Release Plans

There are two main types of equity release plans available in the UK; lifetime mortgages and home reversion plans. Both types of plans allow you to access the equity in your home, but there are some differences between them. These differences include:

Lifetime Mortgage	Home Reversion Plan
You retain ownership of your home	You sell part of your home
You can stay in your home until you die or move into long-term care	You can only stay in your home until you move into long-term care or sell the remainder of the property
The loan is repaid when you die or move into long-term care	The plan ends when you move into long-term care or sell the remainder of the property

Conclusion

Equity release can be a great way to access the money tied up in your home, but it is important to make sure that you understand all of the implications before you commit to any plan. Seeking independent advice from a qualified financial advisor can help to ensure that you make the right decision.

What is Legal and General Equity Release?

Legal and General equity release is a financial service that provides people with the ability to access the equity that they have built up in their homes. It is one of the most popular types of retirement planning in the UK, and has helped many individuals to achieve their long-term financial goals. In general, equity release can be used to help individuals improve their standard of living in retirement, or to pay for one-off costs such as home improvements or medical bills. In order to take advantage of equity release, homeowners must meet certain criteria, such as having a mortgage-free home and being over 55 years old. Legal and General are one of the most trusted providers of equity release in the UK, and they offer a range of products that can help individuals make the most of their retirement savings. The products available include lifetime mortgages, home reversion plans and drawdown plans.

What Are the Benefits of Legal and General Equity Release?

Legal and General equity release is a great option for those looking to improve their retirement income or pay for one-off costs. There are several benefits associated with taking out an equity release product with Legal and General, including:

• You can access your equity without having to sell your property.
• The money released from your home is tax-free.
• You can choose a plan that suits your individual needs.
• Your heirs will not be affected by any equity release plan.
• You can still benefit from any future rises in house prices.

Legal and General also provide customers with a range of additional services, such as advice on how best to use the money released from their property, as well as support throughout the lifetime of the plan.

How Does Legal and General Equity Release Work?

Legal and General equity release works by allowing homeowners to access the equity that they have built up in their home without having to sell it. The amount of money released will depend on the value of your home and how much equity you have built up. Once you have taken out an equity release plan with Legal and General, you will have access to the money that has been released from your property whenever you need it. However, there may be some restrictions on how you can use the money depending on the type of plan you have chosen. It is important to remember that taking out an equity release plan with Legal and General does not affect your heirs, as any remaining balance on the plan will be paid off when your property is sold. In conclusion, Legal and General equity release is a great way for individuals to access the equity that they have built up in their home without having to sell it. It is a safe and secure way to improve your retirement income or pay for one-off costs, and there are a range of products available to suit every individual's needs.

Title:

Legal and general equity release

Keywords:

Equity Release, Releasing Equity, Property Release, Legal & General, Unlocking Value, Homeownership, Retirement Planning, UK

Description: Equity Release: Unlock the Value of Your Home with Legal & General

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