Selling a House With Equity Release: What You Need to Know

Why Selling Your House With Equity Release Is Something to Consider

Coming up With the Money to Pay the Mortgage on Your House Is No Easy Task. With So Many Expenses, It Can Be Difficult to Get Ahead and Maintain a Healthy Savings Account Balance.

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Selling a House With Equity Release: What You Need to Know

There are many reasons a homeowner may want to sell their home. One of the most common is that they need to move due to a job change or retirement.

Other homeowners might want to downsize for more affordable living, and some people might be looking at equity release as an option for financing their home purchase.

This article will explore whether or not you can sell your house if you have equity release on it.

Moving With an Equity Release Plan in Place

Many homeowners get nervous when they want to move and don’t know what their equity release plan says about selling. Fortunately, most providers will allow the homeowner to sell the property if it’s in good condition and not have a penalty for leaving.

Some companies might require you to pay off some or all of your remaining balance before moving on, though, so be sure to check with them beforehand.

Some people find more options available through an equity release provider than just getting a lump sum payout from their home’s value.

Many choose this option because they can stay in place while accessing money as needed without adding additional costs to the loan each year like traditional mortgages do after certain periods expire.

This way, homeowners can go ahead with selling their homes without having to worry about what will happen after the sale goes through.

Moving With an Equity Release Plan

What Type of Equity Release Plan Should I Look For?

The type of plan you choose to go with when it comes time to sell your home will depend on what works best for the situation. For example, if you need a large lump sum payout in full at once, then taking out an equity release loan may not be right for you.

On the other hand, if your needs are more flexible and you want to retain access to some or all of that money while still having options available later down the road after selling is complete, this might be a better option than just getting one big payment back from your property’s value.

Of course, there are many different types of plans out there, so find what suits your needs before deciding which route is most viable1. After all, ensuring every detail has been taken care of before moving forward can be the difference between a smooth transition and an unpleasant one.

Type of Equity Release Plan

Downsizing Protection

Some people might be worried about selling their homes because they feel like they won’t have the money to make another purchase if needed.

Fortunately, there are equity release providers out there that can help you find a plan that works for what you need without having any negative effects on your credit score2 or needing any penalty after moving forward.

In most cases, homeowners who choose this route will pay off their remaining balance before selling but not always depending on the provider and type of loan offered.

However, even if your company’s contract requires this, it may still make sense in some situations since you’ll no longer have an ongoing obligation hanging over your head once everything goes through successfully.

Just remember to check all details beforehand to know exactly what to expect before making your final decision.

Downsizing Protection

What to Expect After Selling Your Home With Equity Release in Place

For many homeowners, selling their property is an exciting time that can bring about new opportunities. However, it’s important to remember that not every equity release provider will be okay with you selling your home if they’re involved in your plan.

For this reason, it’s crucial to know what kind of options are available ahead of time so there aren’t any surprises after the sale has gone through successfully.

The best way to get more details on whether or not you’ll have issues using debt-free capital from equity release when trying to sell your home is by calling up the housing company that provides your plan.

This way, you can find out for yourself what’s possible and what might be off the table before getting too far into the process.

Remember that if you’re able to sell your home after paying off all of your equity release debts using a lump sum payment or other options made available through the company involved in providing it, there probably won’t be any penalties levied upon doing so.

However, some providers may want part of this money back as repayment for their services even though they don’t have an actual ownership stake in the property.

Additional fees could potentially apply depending on how much is requested by them at closing time.

Selling Your Home With Equity Release

How to Pay Off Your Equity Release Loan Early

If you’ve received a large sum of money from your house’s value through equity release, it can be tempting to want to pay off the loan early so that it won’t have any negative impacts on your credit score. Of course, doing this is possible in some situations.

However, most companies will still require interest fees no matter how much time has passed between signing up for their services and receiving the funds involved with selling.

Suppose you don’t mind paying back what was borrowed plus additional charges along the way before making everything final after closing on sales day.

In that case, there are ways to make sure these extra costs don’t come into play when trying to sell or at least minimize them as much as possible.

Of course, it’s important to keep in mind that just because you don’t have any additional fees at closing time after selling your home with equity release in place, this doesn’t mean there will be no penalties involved when trying to pay off the remaining balance early.

While some companies may let homeowners go ahead and pay off their loans without issue regardless of how many years they’ve had them or whether or not anyone else has been added onto the account.

Others might require a certain percentage of interest still due for allowing early repayment before accepting what is owed by someone who wants out earlier than expected.

Pay Off Your Equity Release Loan

Get Professional Advice

No matter what type of equity release plan you choose, remember that a professional can help you make the best decision for your situation.

A certified financial planner3 or other similar advisor4 is knowledgeable about all different types of plans and options available, so they will advise you accordingly as needed.

If planning on selling your home to move somewhere else, having an equitable release loan might not be such a bad idea, after all, depending on how much money it allows homeowners to access when necessary.

You have to find out more information before committing yourself, though, so take some time to learn about all the possibilities before making any major decisions.

The type of plan you go with will depend on what makes sense for your current situation, so take some time to learn everything available before deciding which one works best in different circumstances.

Remember, it’s always better to be safe than sorry when moving forward with big financial choices, so make sure every detail has been thoroughly examined beforehand, so there are no surprises later down the road.

Professional Advice

Common Questions


When Can I Sell My House if I Have Equity Release?


What Are the Requirements for Selling My House if I Have Equity Release?


What Are the Negative Effects of Selling With Equity Release on My Credit Score?


Is Selling Your Home With Equity Release Difficult?

In Conclusion

You can sell your house if you have an equity release. Equity release is a financial tool that allows older homeowners who need cash to borrow against their home’s value to get the money they need.

Always make sure to check with the company involved in your equity release plan first before considering selling it. Also, seek professional advice to get the most out of your home equity release plan and find out more about what might be possible depending on your circumstances.

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