Moving Home with Equity Release
Having an equity release plan doesn't mean you're stuck in your current home.
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What happens next
- Fill in the form (2 minutes).
- We'll match you with the right specialist for your situation.
- A specialist independent broker will contact you to discuss your options.
Important: Equity release is a long-term commitment and will reduce the value of your estate. It may affect entitlement to means-tested benefits. Independent financial and legal advice is required. The specialist brokers we work with source plans from Equity Release Council approved lenders. Your home may be repossessed if you do not maintain required payments on a secured loan.
About Moving Home with Equity Release
All Equity Release Council approved lifetime mortgages are portable - you can move the plan to a new property, subject to the new property meeting the lender's criteria. If the new property doesn't qualify, Downsizing Protection allows repayment without early repayment charges after 3 years.
The options available
Porting the Lifetime Mortgage
Moving to a new property and taking your equity release plan with you - porting. The lender reassesses the new property. If it meets their lending criteria, the plan transfers to the new property. The loan balance carries over.
New Property Criteria
To port an equity release plan, the new property must typically be a standard construction freehold or leasehold with at least 70 years remaining, in good condition, and of a minimum value. The new property must meet the lender's current lending criteria.
Downsizing to a Lower Value Property
If you move to a less expensive property, the loan balance may exceed the lender's maximum LTV for the new property. In this case, partial repayment (of the excess) may be required to bring the loan within the new property's limit.
Downsizing Protection
If you have held your equity release plan for at least 3 years and the new property does not meet the lender's criteria (for example, a leasehold flat with short remaining term), Downsizing Protection allows you to repay the plan in full without any early repayment charge.
Selling Without Moving
If you decide to sell your home and not purchase a new one - moving into rented accommodation or care - the equity release is repaid from the property sale proceeds. Any remaining proceeds (after loan and interest repayment) go to you or your estate.
New Property and Additional Borrowing
When porting, if the new property is more valuable and you have more equity, some lenders allow additional borrowing at the same time as the port - releasing more equity from the new, more valuable property.
How It Works
New property assessment
Your specialist adviser checks whether the new property meets your lender's porting criteria before you proceed with the property purchase.
Lender consent
The specialist obtains lender consent for the port - required before exchange of contracts.
Coordination with conveyancer
The port must complete simultaneously with the property sale and purchase. The specialist coordinates with your solicitor.
Port completion
The equity release transfers to the new property on the same day as the property transaction completes.
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Repaying on Sale (No Port, No Downsizing Protection)
If you sell but do not qualify for downsizing protection (e.g. within the qualifying period), you can still repay your plan early - but an ERC will typically apply. ERCs on equity release plans are fixed-rate-linked and can be substantial in the early years. Before selling, ask your provider for a redemption statement showing the total amount owed including any ERC.
Costs Involved When Selling with Equity Release
- Early repayment charge (ERC): Fixed-rate ERCs can be 5–25% of the initial loan in the early years, reducing over time. Some plans have no ERCs after year 10.
- Administration/redemption fee: Usually £50–£300, charged by the lender to process the redemption.
- Solicitor fees: Your solicitor and the lender's solicitor will both charge for the redemption work.
- Interest accrued: Rolled-up interest is added to the original loan balance and repaid in full on redemption. The longer the plan has been running, the larger the total balance.
If the New Property Does Not Meet Lender Criteria
Some property types - ex-local authority flats, retirement properties, properties with non-standard construction - may not be accepted by your existing lender for a port. In this case, you would need to repay the existing plan (paying any ERC) and take a new equity release plan with a lender that accepts the new property. Your adviser can check this before you exchange contracts.
Frequently asked questions
Can I move home if I have equity release?
Yes - all Equity Release Council approved lifetime mortgages include a portability guarantee. You have the right to move your plan to a new property, subject to the new property meeting the lender's lending criteria. You cannot be forced to stay in your current property.
What if my new property doesn't meet the lender's criteria?
If the new property does not meet the lender's criteria - for example, a leasehold flat with a short remaining lease, or a property in very poor condition - and you have held the plan for 3 or more years, Downsizing Protection allows you to repay the plan without early repayment charges. If you have held the plan for less than 3 years, early repayment charges may apply.
Do I need to tell my equity release lender if I want to move?
Yes - you must inform your equity release lender before selling your home. The lender will confirm whether the new property meets their criteria for porting or whether Downsizing Protection applies. Selling your home without informing the lender would trigger full repayment as the property securing the loan has been sold.
Can I increase my equity release when I port to a more valuable property?
In many cases, yes - if the new property is more valuable, the equity available is higher, and some lenders allow additional borrowing at the time of the port. This must be agreed with the lender before the port completes.
What happens if my equity release balance is greater than the new property value?
This should not occur if the no negative equity guarantee has been maintained. If you downsize to a significantly less valuable property, partial repayment may be required at porting to bring the balance within the new property's maximum LTV. This would be confirmed during the lender's port assessment.
What if the sale price is less than the equity release balance?
The no negative equity guarantee - a standard protection on all Equity Release Council-approved plans - means you will never owe more than your home is worth. If the property sells for less than the balance owed, the lender absorbs the shortfall. You (or your estate) will never be chased for the difference.
Can I port equity release to a retirement property?
Retirement properties (leasehold flats in sheltered housing or retirement villages) are considered by some equity release lenders but refused by others. The age-restricted nature of the property and the service charge structure affect lender appetite. Specialist advice is essential before committing to a purchase.
How is the equity release balance calculated at redemption?
The redemption balance is the original loan plus all rolled-up interest to the redemption date, plus any applicable ERC, plus a small administration fee. Your lender will provide a redemption statement valid for a set period - typically 7–30 days - on request.
Will moving home affect my equity release interest rate?
If you successfully port your plan to a new property, your existing interest rate is preserved. If you repay and take a new plan, you will be subject to whatever rates are available at the time of the new application - which could be higher or lower depending on market conditions.