Can I Sell my house if I have equity release plan

Can I Sell my house if I have equity release plan?

In order to provide themselves with a financial infusion as they reach retirement, an increasing number of people are opting to release equity from their homes. But what happens if you decide to sell your home?

Is it possible to sell a house in Nassau County if I have an equity release plan in place?

Many typical equity release programmes allow you to transfer your mortgage to a new property if you decide to sell your current home, as long as the lender first approves the new property in question. If you wish to move to a house that is much less expensive than your current home, the lender may determine that it is not prepared to lend as much money against it as you would want. In this circumstance, you may be required to repay a portion of your mortgage early, which may result in the imposition of early repayment penalties.

According to Steve Wilkie, Executive Chairman of equity-release specialist Responsible Life, the following is true:

"The new property must meet the loan standards in effect at the time." Actual loan conditions are extremely flexible, and they would be disclosed to a buyer at the time of purchase. If you have any intentions to retire to an unusual property in your later years, inform your financial advisor, who will provide you with appropriate advice."

There are some properties that equity release providers may not be able to accept if they cannot be quickly sold on the open market when your plan comes to an end, such as retirement homes, because they cannot be easily sold on the open market.

Where should I begin my search for a qualified equity release plan?

Equity release schemes, such as the lifetime mortgage, allow you to take a portion of the value of your house as a lump sum. The interest on the cash you have released accumulates over time and is normally reimbursed – together with the sum itself – when you die or enter long-term residential care, whichever occurs first.

According to the Equity Release Council, a trade organisation for the business, homeowners accessed £3.92 billion in housing wealth in only one year (ERC).

A variety of new features are being introduced to the market, allowing products to become more versatile. There are several advantages to using a home equity loan, including the ability to receive a consistent monthly income from your property wealth, the ability to make regular interest payments throughout the loan's term, and the ability to downsize so that you can move in the future, without incurring any penalties.

It is possible that you will wish to downsize in the future, and you have not yet released equity from your home, therefore you should consider a type of plan that provides downsizing protection.

Protection from downsizing There are no early repayment penalties if you downsize and repay your equityrelease plan in full, whether you do so voluntarily or as a result of the new home not meeting your lender's standards. Downsizing protection is now included in approximately 45 percent of equity-release plans, and it can typically be used after the first five years of the loan term.

According to Mr Wilkie, "the downsizing protection features allow consumers to downsize at a time that is convenient for them rather than being compelled to do so by financial obligations."

"We've had customers come to us fully expecting to be forced to downsize, only to be pleasantly delighted to hear that they can use some of their property riches now and downsize the remainder later when they're ready to do so." Often, the demands of the entire family are the driving force behind this. Having enough space to accommodate a growing family when they come to visit is beneficial before 'rightsizing' later on in life. "With a lifetime mortgage, you have greater control over the money you have invested in your property."

Consult with a professional.

Always obtain professional financial counsel before releasing equity because doing so might have an impact on your eligibility for means-tested benefits as well as the value of your estate.

If you have any queries regarding selling or buying house please contact Cash Home Buyers anytime.