Can I Move House with Equity Release?

How portability works

Most lifetime mortgages include a portability feature, which means the loan can be transferred — or "ported" — to a new property when you move. The existing loan balance transfers to the new property, and the lender takes a first legal charge on the new home in place of the old one.

Portability is not automatic, however. The lender must approve the new property before the move can proceed. The assessment is similar to the original application: the new property needs to meet the lender's minimum value requirements, acceptable construction type, and other eligibility criteria.

Assuming the new property is approved, moving with equity release works much like any other house move. Your solicitor handles the legal transfer alongside the conveyancing for the sale and purchase.

What lenders assess on the new property

When you ask to port your equity release plan to a new property, the lender will typically assess:

• Minimum property value — most lenders require the new property to be worth at least £70,000–£100,000, and in some cases more.
• Construction type — standard brick or stone construction is accepted by most lenders. Non-standard construction (timber frame, concrete, steel frame) may be restricted or require specialist lenders.
• Leasehold considerations — if moving to a leasehold property, sufficient lease length must remain after the expected loan term.
• Property condition — the property must be in a habitable condition and suitable as a main residence.
• Location — some lenders have restrictions on very rural properties or those above commercial premises.

What if the new property does not qualify?

If the lender declines to accept the new property, you cannot port the loan. In this situation, you would need to repay the existing equity release plan in full. This could trigger early repayment charges (ERCs), which can be substantial — typically 5–25% of the outstanding loan balance, depending on the product.

Some products include a downsizing protection clause, which allows repayment without an ERC if you are moving to a property that does not qualify (usually after a minimum period of holding the plan). It is worth checking whether your plan includes this feature.

Moving to a less expensive property

If you are downsizing — moving to a property worth less than your current home — the equity release loan transfers at its current balance. The proceeds from your sale are used to purchase the new property and cover any remaining costs. Any surplus cash after the purchase passes to you.

If the outstanding loan balance has grown significantly through compound interest, there may be less headroom for the purchase than you expect. It is worth modelling this scenario with an adviser before committing to a move.

The no-negative-equity guarantee protects you if the sale proceeds are insufficient to repay the loan — you and your estate will never owe more than the property sells for.

What if my house is in negative equity?

This question usually refers to a different situation: a standard residential mortgage where the outstanding balance exceeds the property's current value — not equity release. If you have a standard mortgage and your property is in negative equity, moving house is more complicated but not impossible. You would need your lender's agreement to transfer the negative equity to a new property (known as porting), or to repay the shortfall from other savings.

If you have an equity release plan and are worried that compound interest has grown the loan close to your property's value, the no-negative-equity guarantee protects you: you can never owe more than the property sells for, regardless of how large the loan balance has grown. Your estate will never be pursued for any shortfall.

If you have a standard mortgage in negative equity and are researching equity release as a potential solution: equity release requires that any existing mortgage is repaid from the funds released. If the existing mortgage exceeds the amount that can be released through equity release, this would not be possible without additional funds to bridge the gap.

For the full picture

For a more detailed explanation of all the considerations around moving home with equity release — including downsizing protection, what happens if you move into a care home, and how portability clauses vary between products — see our full guide: Equity Release and Moving Home.