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Can I Sell My House With Equity Release?

Equity Release will reduce the value of your estate and can affect your eligibility for means tested benefits.

You can sell your house if you have equity release, but there are limitations. In this guide, we’re explaining how you can sell or move house with equity release.

You can repay the loan and interest charges with savings, inheritance money or by other means. However, one thing to bear in mind is that you will often need to pay a large early repayment fee.

If you would rather move house with equity release, rather than pay back the loan early, you will need to have a portable equity release scheme.

What is a portable equity release scheme?

A portable scheme gives you the opportunity to move house and transfer your current equity release plan to your new address.

However, the property you want to move to must meet the criteria of your lender. For example, they may stipulate that the property needs to be freehold.

The property will need to meet a certain value. If it falls below that value, you may be expected to pay back some of the loan and interest. If you think there is any chance you may want to downsize or move to an area with lower house prices, this is something to consider.

Some lenders will offer downsizing protection, meaning you won’t have to pay an early repayment charge in this circumstance.

Do you still own your house with equity release?

You will retain the right to live in your own home – it’s still yours. However, when you, or the last borrower, passes away or goes into long-term care, the loan is paid back through the sale of the property. This will impact how much your beneficiaries can expect to receive through inheritance. That’s why it’s recommended that you discuss your equity release with your family. However, it is ultimately your choice.

As a trusted equity release mortgage advisor, we can help you decide if it’s the right decision for you. Contact Derngate Wealth Management Northampton today to book your initial consultation.

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