However, we never know what’s around the corner, and may find in the future that you need to move to a more accessible home, or a less expensive one, or just want to move to a new area. That’s why any plans approved by the Equity Release Council will guarantee you the right to move your plan to a new property.
This means you have the freedom to sell your house and transfer the debt to your new one, without financial penalty, providing it meets the lender’s criteria. If the property isn’t acceptable to your lender, or is worth less than your old one, then you may still be able to move and take your plan with you providing you pay off some of the equity release debt early.
Downsizing protection allows you to pay off the outstanding debt without paying an early repayment charge. So if, for whatever reason, you want or need to move into a smaller home, typically after five years of taking out a lifetime mortgage, you can pay the loan back early without penalty. Without downsizing protection you may still be able to move, however you may incur an early repayment charge if you choose to repay your loan early.
Peace of mind
Talking through all of the options available with your equity release adviser before going ahead will give you peace of mind that if your circumstances were to change for health or family reasons, you’ll be able to adjust your home arrangements accordingly.