Legal & General Equity Release is a valid choice to consider, especially since it already looks after more than 10 million customers’ savings, retirement funding and life insurance needs.¹ 

Is it right for you? As one of the top 10 equity release companies, they might be.

In this review our expert researchers take a deep dive into Legal & General's offerings, ranging from the types of equity release schemes available to understanding interest rates, associated fees, and customer feedback. 

In a sea of providers it helps to have all the facts to make sure you choose the right one for you. 

Read here to make sure you have all the facts before choosing the one which aligns with your financial goals and needs.

NB: Fundweb is an unrelated and independent 3rd-party provider, and the information provided in this article are the opinions of Fundweb only and may not reflect the views of Legal & General. This article is not to be construed as advice, nor is it a solicitation to enter any financial product provided by Legal & General.

What Are Equity Release Solutions?

In simple terms, Equity Release solutions are a way for homeowners to access the financial value in their homes, offering a lifeline for their retirement years.

What Is Legal & General?

Today Legal & General is a well-respected British financial services company, specialising in insurance, investment management, and retirement solutions. 

Originally established in 1836 by 6 lawyers, its root cause has remained to uplift the community by believing that business and social improvement can work together to achieve this.² 

Over 150 years later, and Legal & General are still keeping its promise by having invested  over £32 billion to date in towns and cities all across Great Britain.³

What Are the Customer Reviews for Legal & General Equity Release?

The customer reviews for Legal & General Equity Release are largely favorable.

They often highlight the company's efficient and professional service, the ease of the Equity Release process, and the peace of mind provided by the thorough explanations given throughout.

Customers have especially praised the transparency in terms and conditions, as well as the friendly and knowledgeable customer service representatives who assist them.

On the flip side, a few customers have expressed dissatisfaction with occasional communication delays. However, these reviews are in the minority.

Overall, Legal & General Equity Release holds a strong reputation in the market, providing customers with a trusted and reliable service.

This is evidenced by the positive customer feedback and high review scores across multiple review platforms.

Why Should You Consider Legal & General?

Since it has been around for so long, it has cemented its role as one of the UK’s leading financial service providers.

Reasons to consider it include:

• Reputation and Experience: With over 150 years of experience in the financial services sector, it has earned a reputation for financial stability and trustworthiness.
• Comprehensive Financial Services: Legal & General enables you to manage multiple financial products and services conveniently under one roof.
• Strong Customer Support: The company has dedicated support teams available to assist with queries, claims, and other financial concerns.
• Insurance Specialist: It is a renowned insurance specialist, offering a range of products, including home insurance,  cover for critical illness , and life insurance.
• Retirement Solutions: It offers a wide range of retirement services and expertise to help you maximise your retirement savings, which include annuities and pension funds.
• Investment Management: Its professional asset management services are well equipped to manage various risk profiles and financial goals.

Always consult with a qualified financial advisor or broker before choosing a financial provider.

What Financial Services Do Legal & General Provide?

The equity release company offers a wide range of financial services to individuals, families, and businesses.

These include:

• Insurance
• Investment management
• Mortgage services
• Retirement solutions
• Savings and investments
• Workplace benefits

Equity Release From Legal & General

It offers equity release, typically to customers over 55 years to release some of the equity tied up in their property while continuing to live in it.

What Equity Release Schemes Do Legal & General Have?

Hey’s schemes include the Flexible Lifetime Mortgage and Optional Payment Lifetime Mortgage.

We have broken down each of these.

Flexible Lifetime Mortgage

This product allows homeowners to access cash from their property while retaining ownership. 

Key product features include:

• Loan Amount: Borrow a lump sum or access a pre-approved reserve amount as needed.
• Repayment Options: Choose to let the interest accumulate and be repaid upon passing or moving to long-term care, or make voluntary payments to reduce total interest.
• Interest Rate Options: Choose between fixed and variable interest rate options.
• Inheritance Protection: Protect a portion of the property's value for beneficiaries.
• Equity Release Council Standards:⁴ As a member of the Equity Release Council the firm adheres to the regulatory body's standards.

Optional Payment Lifetime Mortgage

This equity release scheme offers repayment flexibility, allowing homeowners to make monthly interest payments to control interest accumulation. 

Key product features include:

• Repayment Flexibility: Make monthly interest payments to control interest accumulation.
• Lump Sum Option: Release a lump sum of equity from the property.
• Interest Rate Options: Customers have the choice between fixed and variable interest rates.
• Equity Release Council Standards: As a member of the Equity Release Council the firm adheres to the regulatory body's standards.

Key General Features of Legal & General's Equity Release Schemes

Both the company’s lifetime mortgage products share general features.

These include:

• Lump Sum Release: Customers receive a lump sum of equity from the property to use as they please.
• Still Owns Your Property: Retain ownership and the right to live in your home until passing or moving into long-term care as per the terms and conditions of the scheme.
• Repayment Flexibility: Choose to defer payments and allow interest to accumulate or make voluntary payments to potentially reduce overall interest.
• Interest Rate Options: Customers have a choice between fixed and variable interest rates.
• Inheritance Protection: Protect a portion of the property's value for beneficiaries.
• Equity Release Council Standards: As a member of the Equity Release Council it is required to uphold certain standards in order to protect consumers, such as the right to remain in the property for life, the option to move to an alternative property, and a no negative equity guarantee.

Understanding the Interest Rates

Customers have the choice between fixed and variable interest rates.

• Fixed Interest Rates: Remains constant throughout the loan term, providing certainty and enabling financial planning. 
• Variable Interest Rates: These can fluctuate over time, linked to an external reference rate, such as the Bank of England's base rate⁵ or the London Interbank Offered Rate (LIBOR),⁶ plus a fixed margin determined by Legal & General. 

Standards set by the Equity Release Council, mandate a cap on variable rates for the entire duration of the loan.

What Does Legal & General's Equity Release Cost?

Costs and fees may vary based on the specific product, market conditions, and  individual circumstances.

Costs include:

• Arrangement fees: to cover the administrative costs of setting up the scheme and are usually due upon completion.
• Solicitor fees: to cover the legal process, are paid directly to the solicitor.

Does Legal & General Have an Equity Release Calculator?

Yes, it has an online equity release calculator⁷ to give you an estimate of the possible equity release amount you may qualify for. 

The figures provided by the calculator are just an indication and do not necessarily reflect the final offer or terms provided by Legal & General.

You can also try our free calculator here.

What Pros and Cons Should You Consider?

Before making your final choice, it is important to consider the advantages, such as being a reputable provider and disadvantages, which include that it only operates in the UK.

Pros to Consider:

• Well-established Reputation: A reputable company with a long history in the financial services industry.
• Wide Range of Services: Access to various financial products and services from a single provider.
• Investment Management: A variety of investment options managed by experienced professionals.
• Retirement Solutions: Solutions for planning retirement and managing pension funds.

Cons to Consider:

• Mostly UK-Based Services: This may limit the availability of certain products and services in other regions.
• Varied Fees: Prices for different products and services may vary.
• Market Fluctuations: The performance of investments are dependent on fluctuating market and economic conditions.
• Individual Needs: Products are not one-size-fits-all, and that is why individuals should always first seek professional advice.

How Did We Review Legal & General?

We reviewed Legal & General  based on the following:

• Diverse Product Offerings: We prioritise companies that provide a broad spectrum of equity release options with enhanced flexibility.
• Transparency in Rates and Charges: Competitive interest rates compared to the market average are essential. All rates and fees should be clearly laid out, with no hidden expenses.
• Customer Support and Resources: The availability, response times, and quality of customer support matter. We also look for online educational materials and tools, including equity release calculators.
• Industry Standards and Compliance: It is crucial for companies to operate in line with established industry norms and codes of conduct.
• Reputation and Peer Feedback: We value a company's standing within the industry and what peers have to say about them.
• Technological Advancement and Innovation: A seamless digital application process reflects a company's commitment to modern solutions.
• Client Feedback: We look at both the success stories shared by clients and the efficiency of the company's complaint resolution mechanism.

Customer Feedback on Legal & General Equity Release

The feedback on its equity release services varies across different platforms.

A common theme among the negative reviews is dissatisfaction with customer service. 

However Legal & General has made efforts to address each negative review and work towards a resolution.

Here are some online review to explore:

• Reviews.io
• SmartMoneyPeople.com
• TrustPilot

How Legal & General Addresses Complaints

Legal & General is committed to addressing customer complaints diligently and efficiently. 

Customers can lodge complaints through the following channels:

• Email: customerservices@landghomefinance.com 
• Postal Mail: Legal & General Home Finance, PO BOX 17225, Solihull B91 9US.
• Phone: 03330 048 444 

Regulatory Information

Legal & General is regulated by the following regulators: 

• Financial Conduct Authority (FCA)
• Prudential Regulation Authority (PRO)

 It is also a member of the Equity Release Council (ERC).

Financial Conduct Authority (FCA)

It is one of nearly 50,000 businesses in the UK regulated by the Financial Conduct Authority (FCA)⁷ to ensure good conduct by the financial services sector. 

According to the FCA's records, the firm is registered as Legal & General Home Finance Limited.

It is permitted to provide financial services for mortgages and home finance, investments and other activies. 

Prudential Regulation Authority (PRA)

As a member of the Prudential Regulation Authority (PRA),⁸ which forms part of the Bank of England and is responsible for supervising financial service providers to ensure products are offered safely and soundly.

Equity Release Council (ERC)

Being a member of the Equity Release Council (ERC),⁹ the firm adheres to the industry body’s strict code of conduct to safeguard consumers.

How to Contact Legal & General

You can choose from 3 ways to contact the company.

The contact details are: 

• Phone: +44 033 3004 8444
• Email: enquiries@landghomefinance.com
• Writing: 4th Floor, Chadwick House, Warwick Road, Solihull, West Midlands B91 2AA.

Common Questions

Conclusion

With its Equity Release Council membership, No Negative Equity Guarantee, and flexible repayment options, Legal & General demonstrates its commitment to providing secure and flexible solutions for its customers. 

However, as with any significant financial decision, it is crucial to consider all available options, implications for inheritance tax, and estate planning. 

Make sure you seek independent advice before deciding if Legal & General equity release is the best option for you.