Can I Sell My House If I Have Equity Release?
In this guide, we’re looking at whether it’s possible to sell your house with an equity release plan and, if so, what the limitations are.
One of the biggest barriers people have when deciding whether or not to take out an equity release plan is if it affects their ability to sell up and move. For some, this isn’t an issue. However, for others, having the freedom to live out their retirement as they choose is important. This can include the ability to relocate and move house.
Can you sell?
You can pay back your equity release loan before you die. The sale of your current property could enable you to do exactly that. Other means of paying off your loan might include winning a cash prize or inheriting a lump sum.
Be aware that an early repayment charge may apply, and these can be substantial. It’s worth checking how much this would cost you before deciding to take out a loan.
Can an equity release plan be transferred to a new property?
You can transfer the loan to a new property. However, as you might have guessed, there are limitations.
For instance, if you want to downsize, the value of the property will need to be approved by your lender. They need to know that the value of the new property will be sufficient to pay back the loan. This factor could make moving a little more restrictive. However, it’s not a complete barrier.
You can still sell your home and buy a new one. It’s just that you need to get approval to transfer the loan.
We hope that this article has answered all of your questions about whether you can sell or move with an equity release. If you have any further questions or would like to inquire about getting a loan, speak to our mortgage broker in Northampton today. You can send us a message through our online contact form, or call us at 01604633253.
Equity release will reduce the value of your estate and can affect your eligibility for means-tested benefits.
Your home may be repossessed if you do not keep up with repayments on your mortgage.