Can I move home with my existing equity release plan?
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MANY homeowners may think they’ve purchased their forever home, however sometimes circumstances and requirements for a home can change as we age. In fact, research suggests a third of homeowners aged 50 will have moved by the age of 70, over half by 901.
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Calculate how much you could unlock. If you’ve unlocked the equity tied up in your current home but are now considering moving, you may wonder: "Can I move with my existing equity release plan?". The good news is that it is often possible to move home with an existing plan, but there are important considerations to remember.
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Here’s everything you need to know. Equity release allows homeowners aged 55 and over to access the wealth built up in their home, known as equity. Your home must be worth over £70,000 and the amount you can borrow depends on factors such as the value of your property, the age of the youngest homeowner and your needs for the money.
There are two main types of equity release plans, a lifetime mortgage and a home reversion plan. A lifetime mortgage is a loan secured against your home, and you continue to own 100% of your property. Home reversion plans involve selling part or all of your home to a provider in exchange for a lump sum or regular payments.
With both plans, you don’t have to repay the money, plus accrued interest, until you die or move into long-term care. It’s worth noting that the value of your estate will be reduced, and your ability to fund long-term care will be affected. You must first repay any existing mortgage with the money you release.
