Can I Sell With Equity Release

Many people are asking can they sell their house if they have an equity release plan.  And the answer to that question is YES!

This article will explain how selling your house after signing an equity release agreement works.

So is it Possible to Sell Your House on an Equity Release Plan? 

The short answer is yes:

Provided, however, the lender approves the property first. You can sell your house at any time if it’s in a particular condition and has been mortgaged1 or remortgaged.

Look

 It’s important to remember that the lender’s approval is what determines whether or not you can sell.

However, these are the properties on which they are reluctant to lend:

  • Retirement homes2
  • Short term leasehold properties
  • Homes that need renovation
  • Properties with non-standard construction type

Basically

In the same fashion, your original property was assessed to check whether it was suitable for securing an equity release plan; the lender will apply the same type of process to your new property and its suitability.

Moving From One Home to Another

The good news is that most lenders abide3 and are held by the Equity Release Council rules, which explicitly includes the ruling that customers can move to a ‘suitable alternative property.

 A ‘suitable alternative property’ is a home that a homeowner would accept for a new customer under standard equity release suitability criteria.

In any case

Depending on the type of property it is, whether it is of higher or lower value to the previous home, you and the lender will agree on how to handle any repayments or lessening of repayments.

Nowadays, we are finding that there are more flexible equity release plans available.

Learn more about Equity Release Plans

What Does Downsizing Protection Mean For You?

Downsizing protection allows you to downsize your property and give you space to repay your equity release plan. Downsize protection allows your beneficiaries not to be too concerned with the loan that gets paid off when you die.

In addition to that

Once you’ve had the conversation with your equity release provider regarding downsizing and your options, what will happen is that they will arrange for your new house to be assessed by an independent body. They will then evaluate4 if the new property is acceptable to transfer the lifetime mortgage.

Is Now the Right Time to Sell?

Selling your property and moving to a new one is a big decision, and one is always nervous about if it’s the right time. All homeowners and may have different causes as to why they want to sell.

That is why you must speak to a financial advisor5 who will look at your particular case.

Common Questions

How Do I Select the Right Equity Release Scheme for My Needs?

How Do I Know What My Property Is Worth?

How Do I Know if My Property Is Suitable for an Equity Release Scheme?

How Long Does an Equity Release Plan Last?

In Conclusion

Many factors go into determining if you can sell your house. You should consult with a finance professional to determine what steps need to be taken before selling to maximize the sale price and reduce the time it takes for settlement.

Your home may not even have an equity release available, or there could be restrictions on how much debt is allowed from this option, so it’s important to find out these details before you proceed.

How Much Can You Release?

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How Much Can You Release?

Most people are using Equity Release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.
Use our free equity release calculator & see how much you can release today.

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