Can I Move House with Equity Release?
One of the most common concerns about equity release is whether it ties you to your current home permanently. In most cases, it does not — but there are conditions to understand before moving.
Yes — most equity release plans are portable. You can move to a new property and transfer the loan, subject to the new property meeting the lender's criteria.
How portability works
Most lifetime mortgages include a portability feature, which means the loan can be transferred — or "ported" — to a new property when you move. The existing loan balance transfers to the new property, and the lender takes a first legal charge on the new home in place of the old one.
Portability is not automatic, however. The lender must approve the new property before the move can proceed. The assessment is similar to the original application: the new property needs to meet the lender's minimum value requirements, acceptable construction type, and other eligibility criteria.
Assuming the new property is approved, moving with equity release works much like any other house move. Your solicitor handles the legal transfer alongside the conveyancing for the sale and purchase.
What lenders assess on the new property
When you ask to port your equity release plan to a new property, the lender will typically assess:
- Minimum property value — most lenders require the new property to be worth at least £70,000–£100,000, and in some cases more.
- Construction type — standard brick or stone construction is accepted by most lenders. Non-standard construction (timber frame, concrete, steel frame) may be restricted or require specialist lenders.
- Leasehold considerations — if moving to a leasehold property, sufficient lease length must remain after the expected loan term.
- Property condition — the property must be in a habitable condition and suitable as a main residence.
- Location — some lenders have restrictions on very rural properties or those above commercial premises.
What if the new property does not qualify?
If the lender declines to accept the new property, you cannot port the loan. In this situation, you would need to repay the existing equity release plan in full. This could trigger early repayment charges (ERCs), which can be substantial — typically 5–25% of the outstanding loan balance, depending on the product.
Some products include a downsizing protection clause, which allows repayment without an ERC if you are moving to a property that does not qualify (usually after a minimum period of holding the plan). It is worth checking whether your plan includes this feature.
Moving to a less expensive property
If you are downsizing — moving to a property worth less than your current home — the equity release loan transfers at its current balance. The proceeds from your sale are used to purchase the new property and cover any remaining costs. Any surplus cash after the purchase passes to you.
If the outstanding loan balance has grown significantly through compound interest, there may be less headroom for the purchase than you expect. It is worth modelling this scenario with an adviser before committing to a move.
The no-negative-equity guarantee protects you if the sale proceeds are insufficient to repay the loan — you and your estate will never owe more than the property sells for.
For the full picture
For a more detailed explanation of all the considerations around moving home with equity release — including downsizing protection, what happens if you move into a care home, and how portability clauses vary between products — see our full guide: Equity Release and Moving Home.
Want to understand your options? Speak to a specialist later-life lending adviser. No obligation — just plain-English answers to your questions.
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