Can I Move House After Taking Equity Release? (2026 Guide)
Yes — most equity release plans are portable. Here's exactly how moving works, what the lender needs to approve, and what happens if your new home doesn't qualify.
Yes, you can move house after taking equity release. Most lifetime mortgages from Equity Release Council members are portable, meaning the plan can be transferred to a new suitable property. The lender must approve the new home as acceptable security, but you are not locked into your current property.
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How portability works
Portability is a standard feature of Equity Release Council-approved lifetime mortgages. It means you can transfer your existing equity release plan — along with its current balance and interest rate — to a new property when you move.
This is not an optional extra. The ERC's product standards explicitly require that lenders allow customers to move to a suitable alternative property without triggering early repayment charges, subject to the new property meeting the lender's criteria.
The key word is "suitable." The lender must agree that the new property is acceptable security. This is assessed on the same criteria as your original application: property value, construction type, tenure, condition, and location.
Step-by-step: moving with equity release
Here is the typical process for porting an equity release plan:
- Notify your lender. Inform them that you intend to move and wish to port the plan. Do this early — ideally when you start looking for a new property.
- Lender assesses the new property. The lender will commission an independent valuation and assess the property against its lending criteria.
- Approval or decline. If approved, the lender confirms the transfer terms. If declined, you will need to consider alternatives (see below).
- Transfer on completion. On the day you complete the purchase of your new home, the equity release plan is transferred. Your existing interest rate is maintained.
- Balance adjustment if needed. If the new property supports a smaller loan (because it is cheaper), the balance is reduced and the difference is paid from your sale proceeds. If you want to borrow more, this may be possible subject to your age and the lender's criteria.
Your solicitor handles this process in parallel with the standard conveyancing. It adds some complexity but is routine for solicitors experienced in equity release.
What lenders assess on the new property
Lenders apply the same criteria to the new property as they did to your original home. Key factors include:
| Factor | Typical Requirement | Potential Issues |
|---|---|---|
| Minimum property value | £70,000–£100,000 | Very modest properties may be declined |
| Construction type | Standard brick and tile | Timber frame, concrete, thatched roofs may be restricted |
| Tenure | Freehold preferred | Leasehold must have 75+ years remaining |
| Condition | Reasonable, no major defects | Structural issues may need addressing first |
| Location | Standard UK residential | Very rural, above commercial, limited resale markets |
An independent valuation is required, and you typically pay the cost. This is usually £200–£400.
What if the new property doesn't qualify?
If the lender declines the new property, you have three main options:
- Repay the loan in full. Use the sale proceeds from your current home to repay the equity release loan. Early repayment charges (ERCs) may apply, though some products include downsizing protection that waives ERCs in certain circumstances.
- Find an alternative lender. Another lender may accept the property. This involves repaying the existing plan and taking out a new one — at current interest rates, which may be higher or lower than your existing rate.
- Reconsider the move. If the property type simply doesn't fit any lender's criteria (e.g., a park home or listed building with restrictions), you may need to look for a different property.
Downsizing: what happens if the new home is worth less
Downsizing — moving to a smaller, cheaper property — is one of the most common reasons for moving after equity release. If the new property is worth less, the loan balance may exceed the maximum the lender will advance against it.
John and Margaret's move — Their current home sells for £350,000. The outstanding equity release loan is £120,000. They want to buy a bungalow for £200,000. The lender's maximum LTV on the new property is 40% (£80,000). The lender transfers £80,000 to the new property; the remaining £40,000 must be repaid from the sale proceeds. John and Margaret receive £350,000 minus £120,000 = £230,000, minus the £200,000 purchase price = £30,000 surplus in their hands.
If the sale proceeds were insufficient to cover the full loan balance, the no negative equity guarantee would protect the estate from any shortfall.
Downsizing protection features
Some lifetime mortgages include a specific downsizing protection clause. This allows you to repay the loan in full without incurring early repayment charges if you downsize after a specified period — typically five years from the start of the plan.
The precise terms vary by product. Some key questions to ask:
- How long must the plan be in place before downsizing protection applies?
- Does the new property need to meet a minimum value threshold?
- Is there a limit on how much the loan can be reduced?
- Does the protection apply to any move, or only genuine downsizing?
Downsizing protection is not standard on all products. If you think downsizing is a realistic possibility, prioritise products that include this feature.
Compare equity release vs downsizing
See how much you could release compared to the costs and risks of selling and moving to a smaller property.
People Also Ask
Yes, provided the new property meets the lender's criteria. Location is assessed, but most standard UK residential areas are acceptable.
Yes, but the lease must typically have 75+ years remaining. Some lenders have additional restrictions on leasehold properties.
No. Your existing interest rate is maintained when you port the plan. If you want to borrow more, the additional amount may be at a different rate.
Typically 4–8 weeks, running in parallel with your property purchase. Start the process as early as possible to avoid delays.
Yes, and you may be able to borrow more against the higher value, subject to your age and the lender's criteria at the time.
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Reviewed by Chris, CII-qualified equity release specialist · Last reviewed July 2026