What happens if you have an equity release mortgage but want to move house? Can you transfer an equity release mortgage to another property? Laura Noble, Licensed Conveyancer in Coodes Solicitors’ Residential Property team comments.
I recently had a really good experience with a client with an equity release mortgage who wanted to move to a smaller property. She had taken out an equity release mortgage with her late husband and wanted to transfer it to her new home. The mortgage company arranged a valuation of the new property and confirmed that it met their criteria so the mortgage could be transferred.
I was very impressed with the company, whose staff were easy to get hold of, friendly and helpful. The process was very straightforward and my dealings with the mortgage provider were wholly positive.
More people than ever are choosing equity release mortgages – our recent blog explains how they work. But what happens if you want to move house before you have paid off your equity release mortgage?
The short answer is that you can usually transfer an equity release mortgage to a new property. Your mortgage company will have criteria for your new home, which will be the same as if you were taking out the equity release mortgage as a new customer. Generally speaking, your mortgage provider will not be able to accept properties that cannot be sold on the open market – for example, homes on retirement complexes. The type of construction may also be an issue, so in Cornwall houses built with mundic block are not usually mortgageable.
What do I need to do?
If you have an equity release mortgage and want to move to a new property, it is important to find a conveyancing solicitor with the right experience. For the client mentioned earlier, I had a lot of communication with the mortgage provider and this helped ensure a smooth transition. At Coodes we have a wealth of knowledge and experience with equity release mortgages so can help guide you through the whole process.
If you are considering taking out an equity release mortgage, I would recommend you discuss with your lawyer the possibility of transferring it to a new property. This will help you understand your future options because we all know that life is unpredictable.
For more information on this or any residential property enquiries contact Laura Noble, Residential Property team, Coodes Solicitors on 01326 213035 or email@example.com