Can I move equity release to a new property?
Equity release plans can be moved to another property.
If you are thinking about downsizing or moving to a different property at some time in the future you need to think carefully before taking out a Lifetime Mortgage. Most Equity Release providers will allow you to move the mortgage to a new property, but the new property must meet their lending criteria and be subject to their Terms and Conditions.
If you do move the mortgage to a new property you may have to repay part of the loan, as the loan will be based on the value of your property. if you are moving to a smaller or cheaper property the property may be worth less than your old property and the amount the Lifetime Mortgage lender is prepared to lend may be lower. In this situation you may incur early repayment charges on the portion of the loan you repay.
Alternatively if you are looking to buy a property that is of a higher value, because you are moving to a more expensive area or are moving to a larger property you can still move the equity release plan to a new property and potentially release a larger amount of cash. In this situation you can even use the equity you release to help buy the new property.