Can I Sell My House if I Have Equity Release?
Can I sell my house if I have an equity release plan? This is a common question and here’s everything you need to know.
What is equity release?
Equity release is a way for homeowners aged 55 and over to access some of the money tied up in their homes without having to move houses.
The money can normally be taken as a lump sum, regular payments, ad-hoc payments, or a combination of these.
With a lifetime mortgage, the amount borrowed, plus any interest and charges due, is usually repaid when the property is sold after you die or move permanently into long-term care. Home reversion plans work differently because you sell all or part of your property to the provider.
You’re probably wondering “can I sell my house if I have equity release?”. If you have taken out an equity release plan it is usually still possible to move house – but there are some things you should be aware of.
If you have a lifetime mortgage and decide to repay it early rather than transfer it to your new home, you may have to pay an early repayment charge. These charges can be significant and will depend on the terms of your plan, although exemptions may apply in certain circumstances. Check the terms of your existing plan and speak to your provider or adviser before deciding to repay it.
What type of equity release plan do you have?
There are two main types of equity release: lifetime mortgages and home reversion plans.
If you have a lifetime mortgage, you may be able to transfer it to your new home, subject to the provider’s lending criteria and the new property being suitable.
Things are a bit trickier if you have a home reversion plan as this involves selling a percentage of your home.
Equity release products that meet Equity Release Council standards allow customers to move to a suitable alternative property, subject to the provider’s criteria.
Porting your lifetime mortgage
Transferring your lifetime mortgage to a different property is known as ‘porting’.
The process is similar to taking out an equity release plan in the first place. Your provider will assess the new property and may have its own requirements for transferring the plan.
In some situations, it may be best not to port your lifetime mortgage but to repay it and take out a new plan on your new home. However, paying off a lifetime mortgage can carry substantial repayment charges, so you should seek advice before considering repaying a lifetime mortgage.
Is your new property suitable?
For an equity release porting request to be approved, the lender will need to assess the property you are buying. This is because it will want to be sure it can sell the property when you die or move into long-term care. There is likely to be a valuation fee for your new property.
The new property will need to be in a reasonable condition and meet certain other terms. For example, it will need to be made of standard construction materials, have a sufficiently long lease (if leasehold), be habitable, and not be a specialist retirement property.
What happens if I move to a cheaper property?
If you move to a cheaper property, you might need to repay some of the equity release money to the lender. This is because the new property may not provide sufficient security for the full amount outstanding.
If your lifetime mortgage meets Equity Release Council standards and a partial repayment is required because of the value of the new property, that required repayment should not incur an early repayment charge, although other costs may apply.
You may be able to use money from the sale of your property to make any required repayment.
Taking out a new equity release plan
If you’re moving house, you might decide to repay your existing equity release plan and take out another one on your new property.
A new plan may have different rates, features and charges, but you should consider the costs of repaying your existing plan before making a decision.
In particular, your existing provider may charge an early repayment charge. Depending on your plan, this could be significant and may reduce or outweigh any potential saving from switching to a new plan. The amount and circumstances in which an early repayment charge applies will depend on the terms of your existing agreement.
Some plans include downsizing protection or other circumstances where an early repayment charge will not apply, but eligibility and conditions vary between providers and products.
You may also need to pay other costs associated with taking out a new plan, including advice, legal and valuation fees. You should speak to a qualified equity release adviser before making a decision.
What happens if I go into long-term care?
If you move into long-term care, your home will need to be sold to pay off the equity release lender. If you live with your partner, this will only happen when you both go into care or pass away. The executors of your will normally need to sell your home and pay off the equity release lender.
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Last Updated: September 30th, 2026
