Selling your property with an Equity Release plan

In this guide for Windsor homeowners, we answer a common question: if I have an Equity Release plan, can I still sell my home later?

As we all know, circumstances can change. As industry adviser Richard Jeremiah-Clarke observes, homeowners can find themselves wanting to downsize or move closer to family. Or their health and mobility needs change, so their home needs to change too. Understanding the options is an essential part of choosing an Equity Release plan.

So, can you sell your home with an Equity Release plan?

The short answer is yes. Selling your property is an option, but certain conditions apply.

What are the options?

If you have taken out an Equity Release plan but later decide to sell your home, you generally have two options:

1. Porting your plan

Many lenders allow you to transfer your equity release loan to a new property, provided it meets the lender’s criteria.

2. Early repayment

If you’re unable to port the loan to a new property, you can still sell your home and use the sale proceeds to discharge the loan. However, subject to the terms of the Equity Release plan, you could incur early repayment charges.

Are lenders flexible about selling?

In Richard’s experience, lenders understand that circumstances change, and they are often helpful in these situations. They know that people might need to move due to life events, and most will work with you to make the transition smoother.

Some key factors to consider include:

·         Early Repayment Charges – Some plans have fees if repaid early, although some reduce or remove fees after a certain period.

·         Property Suitability – If you plan to port the loan to a new home, the lender must approve the new property.

·         Market Conditions – Selling your home at the right time can impact how much equity remains after repaying the loan.

Steps to selling your home with an Equity Release plan

If you're considering selling, it is recommended that you:

1. Contact your lender – Find out whether your plan allows porting or what fees apply for early repayment.

2. Assess your property value – Work with a local Windsor estate agent to understand the market value of your home.

3. Review costs & fees – Understand how much you’ll owe the lender and what will remain after selling.

4. Consider alternative properties – If porting, check if your desired home meets lender requirements.

5. Seek expert advice – Speak to a qualified Equity Release adviser in Windsor for guidance tailored to your situation.

Final thoughts

Selling a property with an equity release plan is possible, but it requires careful planning. Whether you want to port your plan or pay it off, knowing your options ensures a smooth process.

If you're considering selling your home and have an equity release plan, consulting with a local specialist can help you navigate your next steps effectively.

By understanding the process and working with your lender, Windsor homeowners can confidently make decisions that fit their changing needs.