"Can You Transfer Equity Release to a New Property? Here's What You Need to Know"

Can Equity Release Be Transferred to Another Property?

Equity release has become an increasingly popular option for homeowners looking to unlock the value of their property without having to sell up and move. However, a common question we often hear at My Later Life, an award-winning equity release and later life mortgage broker, is whether equity release can be transferred to a new property if you decide to move. The good news is that in many cases, the answer is yes!

How Does Transferring Equity Release Work?

The key to transferring an equity release plan lies in a feature called "portability." Most equity release products—especially lifetime mortgages, which are the most common type—come with this portability feature. This means that, if you decide to sell your current home and move to a new one, you can transfer your existing equity release plan to your new property, subject to certain conditions.

The Conditions for Transferring Equity Release

While many equity release plans are portable, there are a few conditions that must be met in order for the transfer to go smoothly:

1. The New Property Must Meet the Lender’s Criteria: Not all properties are eligible for equity release, so your new home will need to meet the lender’s specific requirements. Typically, lenders prefer properties that are in good condition, made of standard construction materials (like brick or stone), and located in the UK. Some types of properties—like flats above commercial premises, houses with short leases, or homes in retirement complexes—may not qualify.

2. The Value of the New Property: The amount of equity you can release is based on the value of your home, so your new property must have enough value to support the equity release loan. If the new home is worth less than your current one, you may need to repay part of the loan to meet the lender’s loan-to-value (LTV) requirements. Conversely, if you’re moving to a more expensive home, you may be able to release additional equity.

3. Legal and Administrative Processes: Transferring equity release to a new property involves going through certain legal processes, similar to taking out a new mortgage. There may be some fees involved, including legal fees and possibly valuation fees for the new property. Your equity release adviser can guide you through this process to ensure everything is handled smoothly.

Why Might Someone Want to Transfer Their Equity Release?

There are several reasons why someone might want to transfer their equity release plan. Perhaps you’re downsizing to a smaller, more manageable home, or maybe you’re moving closer to family or relocating for a change of scenery in your retirement years. Whatever the reason, transferring your equity release plan can offer flexibility, allowing you to enjoy the benefits of the equity you’ve released without feeling locked into your current property.

What Happens If You Can’t Transfer?

If the new property doesn’t meet the lender’s criteria or the loan-to-value ratio doesn’t work out, you may need to repay the equity release loan when you sell your current home. Depending on the terms of your plan, there could be early repayment charges, so it’s essential to check this with your lender or broker before making any decisions about moving.

Work with an Expert Broker

Navigating equity release and later life mortgages can feel overwhelming, but that’s where we come in. At *My Later Life*, we specialise in helping clients make informed decisions about their equity release options. If you’re considering a move and want to understand how transferring your equity release plan might work, we’re here to guide you every step of the way.

In conclusion, yes, equity release can often be transferred to another property, provided the new home meets your lender’s criteria. With the right advice and planning, you can enjoy flexibility and peace of mind in your later years. If you have any questions about equity release or how it can work for you, don’t hesitate to get in touch with us at *My Later Life*.