Can I Move House After Taking Equity Release?
Wondering whether you’ll still be able to move into a new home if you’ve taken out an equity release plan? The answer is yes: many equity release plans guarantee you the right to move, as long as your new property is eligible.
Plans that follow the Equity Release Council’s guidelines will include the following guarantee:
“You have the right to move to another property subject to the new property being acceptable to your product provider as continuing security for your equity release loan”
Peace of Mind for the Future
For a lot of people who are looking into equity release, moving into a new home is the last thing on their mind – after all, it’s often chosen as an alternative to downsizing specifically because it gives the option to remain in the home you’ve grown to love.
Circumstances do change, though, and being locked into living in one home for the rest of your life could be an understandably worrying prospect. If the time comes to downsize, find a property that suits your lifestyle better, or relocate closer to family or friends, then you’ll be grateful that the option is there.
Do Your Research
There are a few conditons you’ll need to be aware of: the main one is that the property you move into will need to fit your provider’s criteria for equity release. In other words, unless it’s a home that they would approve a new equity release plan for, they won’t be able to transfer your plan.
If in doubt, just ask: your equity release provider will know better than anyone whether or not a home you’re looking at will fit their conditions. Whatever you do, don’t start making arrangements to move until you’re absolutely sure your new home is acceptable.
The Choice is Yours
Essentially, though, it’s good news: a large number of the equity release plans available are set up to give you the flexibility to move or stay in your home depending on your own situation and preferences.
Find out whether you are eligible for an equity release plan by reading our quick guide about who can qualify. You can also use our free online calculator to get an estimate of how much you might be able to release.
Remember, equity release will reduce the value of your estate. It may also affect your entitlement to means tested benefits. The most popular type of equity release, a lifetime mortgage, is a loan secured against your home.
We recommend that anybody considering equity release reads ‘is it right for you?‘ carefully before going ahead.