Can I Sell My House With Equity Release?
Yes, you can normally sell your house if you have equity release.
You will usually have two possible routes. You can repay the equity release plan from the sale proceeds. Alternatively, you may ask the provider to transfer, or “port”, the plan to your next home.
Porting is not automatic. Your provider must accept the new property as suitable security. You may also need to repay part of the balance, particularly when moving to a lower-value home.
The practical question is therefore not only whether you can sell. It is what must happen to your existing plan when you do.
At a Glance
- You can normally put your house on the market and sell it.
- Your equity release provider must be told about the proposed sale.
- The plan can usually be repaid when the sale completes.
- Some lifetime mortgages may be transferred to another suitable property.
- The provider must approve the new property before the plan can move.
- Downsizing may require a partial repayment.
- Early repayment charges could apply if you repay the plan voluntarily.
- A solicitor will arrange repayment or transfer during conveyancing.
- The amount left after repayment will depend on your sale price and plan balance.
- Speak with a qualified adviser before committing to another property.
You can read our main equity release guide for a broader explanation of the available product types and risks.
What Happens to Equity Release When You Sell Your House?
Equity release is secured against your home. It cannot simply remain attached to a property after ownership transfers to another person.
When the sale completes, one of two things must normally happen:
- The equity release balance is repaid from the sale proceeds.
- The plan is transferred to another property with the provider’s approval.
Your conveyancing solicitor will contact the provider and request a redemption statement. This shows the amount required to repay the plan on a stated date.
The statement may include:
- The original amount borrowed.
- Any further advances or drawdowns.
- Interest added to the balance.
- Administration or closure fees.
- Any applicable early repayment charge.
- Any payments already made towards the plan.
The solicitor will normally repay this amount before releasing the remaining sale proceeds to you.
For example, suppose your home sells for £400,000 and the redemption balance is £125,000. Before other selling costs, £275,000 would remain after repaying the equity release provider.
This is a simple illustration. Your actual position will depend on your plan, interest, charges and sale costs.
Can I Move My Equity Release Plan to Another House?
Some lifetime mortgages can be transferred to another suitable property. This process is commonly called porting.
The right to move does not mean every property will be accepted. The new home must meet the provider’s lending and property criteria.
Providers may consider:
- The property’s construction.
- Its condition and expected lifespan.
- Its market value and saleability.
- Whether it will be your main residence.
- The remaining lease term, where applicable.
- Flood, coastal or environmental risks.
- Commercial activity at or near the property.
- Restrictions affecting resale.
- The proportion of the property value represented by the loan.
Our guide to lifetime mortgages explains how these plans are secured and how interest may affect the amount owed.
A provider will usually arrange a valuation of the new property. Legal work will also be required to release the charge over the old home and register security against the new one.
You should obtain approval before exchanging contracts. Do not assume that a plan can move because the new home appears similar in value or condition.
What Happens if I Downsize?
Downsizing means selling your current home and buying a less expensive property.
It can reduce maintenance, provide a more practical home and release money for later life. However, a lower property value may affect how much equity release debt the provider will allow to remain.
The provider may require a partial repayment so the balance remains within its lending limits.
For example:
- Current home value: £450,000.
- Existing equity release balance: £140,000.
- New home value: £300,000.
- Maximum balance permitted against the new home: £105,000.
- Possible partial repayment: £35,000.
These figures are illustrative. The provider’s calculation may depend on your age, product terms, property value and loan-to-value limits.
A partial repayment required for an accepted move may receive different early repayment treatment from a voluntary full redemption. Your provider should confirm the position before you proceed.
The Equity Release Council explains that moving or downsizing may remain possible, although part of the released equity may need to be repaid from the sale proceeds. Read its guidance on planning for future moves with equity release.
Will I Pay an Early Repayment Charge?
An early repayment charge may apply when a lifetime mortgage is repaid before a specified event.
The amount and calculation method depend on the original plan. Charges may be:
- Fixed for a set number of years.
- Calculated using a published formula.
- Linked to changes in long-term interest rates.
- Reduced or removed after a stated period.
- Waived in specific circumstances.
A charge may not apply when the plan ends following death or a permanent move into long-term care. Joint plans normally continue until the final borrower dies or moves permanently into care.
Some plans also include downsizing protection. This may allow repayment without an early repayment charge after a qualifying period when the new home is unacceptable to the provider.
The protection is subject to the product terms. It should not be assumed to apply to every plan or every move.
Before marketing your property, ask the provider for:
- A current balance.
- An estimated redemption figure.
- Details of any early repayment charge.
- The plan’s porting conditions.
- Its downsizing protection terms.
- The process for assessing another property.
A qualified adviser can review these figures alongside your wider later-life lending options.
Can Every Property Accept a Ported Lifetime Mortgage?
No. Some properties present greater long-term security or resale concerns for lenders.
A provider may decline or restrict lending on:
- Properties with short leases.
- Certain retirement developments.
- Homes with unusual construction.
- Properties needing substantial repairs.
- Park homes or mobile homes.
- Some flats above commercial premises.
- Homes with agricultural restrictions.
- Properties with extensive land.
- Homes affected by serious flood risk.
- Buildings with unresolved cladding concerns.
- Properties partly used for business purposes.
Criteria vary between providers. A property refused by one provider may be considered differently by another. However, changing providers could involve repaying the existing plan and arranging a new one.
That could introduce:
- Early repayment charges.
- New advice costs.
- Legal fees.
- Valuation fees.
- A different interest rate.
- Reduced borrowing capacity.
- Different product conditions.
The lowest immediate charge is not always the lowest long-term cost. A decision should consider the effect on your home, future choices and remaining estate.
What if I Want to Sell Without Buying Another Home?
You can normally sell and repay the equity release plan without buying another property.
This may happen when you:
- Move into rented accommodation.
- Move in with relatives.
- Relocate abroad.
- Enter supported accommodation.
- Choose to live somewhere that cannot support the existing plan.
- Permanently move into long-term care.
A voluntary sale may trigger an early repayment charge. Moving permanently into long-term care is typically treated differently under the terms of qualifying plans.
You should also consider where you will live after the sale. Equity release is designed around property ownership. Once the plan is repaid, the remaining money must support your next housing decision and wider financial needs.
What Happens With a Home Reversion Plan?
A home reversion plan works differently from a lifetime mortgage.
With a home reversion arrangement, a provider buys all or part of your property in exchange for a lump sum, regular payments or both. You retain the right to live in the property under the plan’s terms.
Because the provider owns a share of the home, you cannot treat the sale as though you were the sole owner. The provider must be involved in the transaction and will receive its agreed share of the sale proceeds.
Moving may still be possible, subject to the provider’s conditions and the replacement property.
Our guide to home reversion plans explains their ownership structure and how they differ from lifetime mortgages.
How Does Selling a House With Equity Release Work?
The usual process follows these stages.
1. Review the original plan
Find the offer, terms, annual statement and any later variation documents.
Check whether the plan includes:
- Portability.
- Downsizing protection.
- Early repayment charges.
- Property restrictions.
- Partial repayment provisions.
2. Speak with an equity release adviser
An adviser can review whether repaying, porting or replacing the plan may be suitable.
The FCA has stressed that equity release advice must consider each customer’s circumstances, needs and reasons for borrowing. A standard product answer is not enough for a personal later-life decision.
Read the FCA’s findings on equity release advice and customer outcomes.
3. Contact the provider
Ask for written details of:
- The current balance.
- Estimated charges.
- Porting criteria.
- Required documents.
- Valuation arrangements.
- Expected timescales.
4. Assess the next property
Ask the provider to consider the proposed property before you make an unconditional commitment.
Your estate agent’s view does not replace the provider’s valuation or legal approval.
5. Appoint a solicitor
The solicitor will deal with the lender’s legal charge, redemption funds and purchase documentation.
The solicitor should have suitable experience in equity release and moving-home transactions.
6. Complete the sale and purchase
On completion, the solicitor will either repay the plan or transfer the approved balance to the new property.
Where a partial repayment is required, it will normally be deducted from the sale proceeds.
Could a Standard Mortgage Be an Alternative?
Selling a property with equity release does not always mean the only next step is another lifetime mortgage.
Depending on your age, income, property and objectives, alternatives may include:
- A retirement interest-only mortgage.
- A standard residential mortgage.
- A smaller repayment mortgage.
- Downsizing without further borrowing.
- Using savings towards the purchase.
- A family-supported arrangement.
- Repaying the plan and renting.
A standard mortgage typically requires evidence of affordability and monthly payment information. A lifetime mortgage may allow interest to roll up, although some plans permit or require payments.
The two structures should not be compared only by their starting rates. Payment commitments, total interest, flexibility and estate impact all matter.
For information about conventional moving-home finance, visit Connect Mortgages’ guide to moving-home mortgages.
How Connect Lifetime Can Help
Selling a home with equity release can involve multiple financial services.
Connect Lifetime can help you consider:
- Your existing equity release balance and plan conditions.
- Whether the plan may be ported.
- The effect of downsizing.
- Possible early repayment charges.
- Lifetime mortgage alternatives.
- Retirement interest-only borrowing.
- Residential mortgage options where suitable.
- The affordability of required payments.
- Property criteria affecting a proposed purchase.
- Protection and insurance needs for the next home.
Our role is to examine the complete move rather than one product in isolation.
A home is both an asset and a place in which life continues. Selling it may release money, reduce costs or create a more suitable future. Yet every financial gain must be considered beside the security and choices it leaves behind.
Before deciding, you may wish to review our guidance on planning for retirement and how property decisions may fit within a wider plan.
Questions to Ask Before Selling
Ask your provider or adviser:
- What is the current redemption balance?
- Would an early repayment charge apply?
- Can the plan move to another property?
- Which property types are excluded?
- Will downsizing require a partial repayment?
- Does my plan include downsizing protection?
- How long will the provider’s approval take?
- What valuation and legal fees apply?
- How much money should remain after completion?
- Could another mortgage structure be suitable?
- What happens if the purchase and sale complete on different dates?
- How could the decision affect my estate or benefits?
These questions help turn a possible move into a measurable plan.
Speak With a Connect Lifetime Adviser
Selling your home may be possible, but the right approach depends on your plan and next move.
A Connect Lifetime adviser can review the balance, plan terms, property choice and suitable borrowing alternatives before you commit.
Contact Connect Lifetime to discuss selling, moving or downsizing with equity release.
Frequently Asked Questions
Can I sell my house if I have a lifetime mortgage?
Yes. The lifetime mortgage must normally be repaid from the sale proceeds or transferred to another property accepted by the provider.
Do I need the equity release provider’s permission to sell?
You should notify the provider and follow its redemption or porting process. Its legal charge must be removed before ownership can transfer.
Can I transfer equity release to any property?
No. The new property must meet the provider’s criteria and be acceptable as continuing security.
What happens to the money when my house is sold?
Your solicitor normally pays the outstanding equity release balance and other secured debts. The remaining proceeds are then available to you, subject to transaction costs.
Will I have to repay part of my lifetime mortgage when downsizing?
Possibly. A lower-value property may not support the full existing balance under the provider’s loan-to-value limits.
Can I sell without buying another property?
Yes. The plan can normally be repaid in full. However, early repayment charges may apply depending on why and when the plan ends.
Can I change equity release provider when moving?
It may be possible, but the existing plan would usually need to be repaid. Advice should account for charges, new rates, fees and product conditions.
How long does porting an equity release plan take?
Timescales vary. The process may require advice, a property valuation, underwriting, legal work and coordination with your sale and purchase.
Should I accept an offer on my home before speaking with the provider?
You may market the property, but obtain plan information early. Provider approval is particularly important before committing to a replacement home.
Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.
A lifetime mortgage is secured against your home. Interest may be added to the loan, meaning the amount owed can increase over time.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
