Legal & General extends its property refurbishment lifetime mortgage pilot
6 Mar 2018
L&G is expanding the pilot of a mortgage allowing equity-rich elderly people to stay in their homes for longer in good living conditions and fund essential refurbishments that will bring the property up to the Government's decent homes standards.
- Legal & General is launching a brand new lifetime mortgage concept - aimed at property refurbishment
Legal & General has today announced that the pilot of its ‘Property Refurbishment Lifetime Mortgage’ product will be further extended after a successful customer trial.
The initial areas covered will be London, Bristol, Oxford and the Black Country. If the trial is successful, Legal & General plan to roll the product out across the UK in the future.
The product is secured against the customer’s home and is used to fund essential repairs and refurbishment to bring the property up to the Government’s Decent Homes Standards. Qualifying borrowers must take full advice and any alternative sources of funding are insufficient to cover the necessary refurbishment.
Legal & General is working with Age Partnership to provide customers with the required advice on the suitability of the product. Social Enterprises and Home Improvement Agencies will work with approved suppliers to manage the renovation works through to completion and support the customer throughout the refurbishment process.
The Property Refurbishment Lifetime Mortgage is a direct response to the UK’s increasing number of elderly, income-poor, equity-rich homeowners who are living in properties that are in serious need of a complete refurbishment. Nationally, it is estimated that around one in five homes occupied by older people fail to meet the Decent Home Standard. Department of Communities and Local Government figures show there are currently over 80,000 vulnerable owner-occupiers living in ‘non-decent homes’ in London alone.
For customers who have no other way to access finance due to the condition of their home and their personal circumstances, Legal & General’s Property Refurbishment Lifetime Mortgage has the potential to deliver significant benefits in living standards and health and wellbeing for homeowners in later life.
Other government grants or local housing support will often be insufficient to cover the costs, especially if there is an outstanding mortgage.
Nigel Wilson, CEO, Legal & General said:
“The UK faces a looming crisis with older customers living in unsuitable or dilapidated accommodation which they are reluctant to leave but often cannot afford to repair. The UK’s ageing population, spiralling living and care costs and factors restricting the downsizing market are all contributing to the problem. Legal & General is determined to provide a fair value financial solution to this growing customer need and to enable more people to enjoy the peace of mind and security of staying in their home for longer, and in transformed conditions. We feel that we have a duty of care to support and protect people when they need it most – and that’s exactly what this pilot is delivering.”
Steve Ellis, CEO, Legal & General Home Finance said:
“Legal & General’s Property Refurbishment Lifetime Mortgage is very much a pilot and we know this issue is too big to be solved by one company alone. We want to shine some more light on this problem, to offer practical solutions for customers and to encourage the rest of the industry to follow our lead in driving innovative solutions for some of the most vulnerable in our society. The early projects we’ve been involved in have been absolutely transformational for the people involved. It’s all about making a real difference to everyday lives whilst enabling them to stay in the home they love.
This article was published in The Sun on 06.03.2018 by Business Reporter, Tracey Boles
Legal & General is determined to provide a fair value financial solution to this growing customer need and to enable more people to enjoy the peace of mind and security of staying in their home for longer, and in transformed conditions.
Nigel Wilson, CEO of Legal & General Group