Can I Move ?
Posted on 5th March 2020 at 13:36
Up to now we’ve covered the confusion of the Equity Release name (LLL), what the money can be used for, how the mortgage works and ways to limit the amount owed..
This time we will cover the conundrum of moving house with Lifetime Mortgage and whether it is achievable.
When you took out LLL you should have discussed with the advisor whether you had plans to stay in the property for as long as possible or whether you envisaged downsizing and move within a few years. This information would have been used by the advisor to aid his research and form part of the final recommendation. However, we all know that people’s circumstances can change and the best laid plans come sometimes come undone.
So can you move house with LLL ? The answer is quite likely! You’d need to check your original LLL paperwork but there should be a section about moving house or ‘porting’ as it can also be referred to.
Lenders have their own rules or guidelines as to moving house. Some will allow a straight swap as long as there is still enough equity in the new property. Others may allow the move to happen but a new LLL agreement to be selected, while some could want a portion of the old mortgage to be repaid.
Some may apply Early Repayment Charges or provide an opportunity to exit the LLL agreement but we’ll cover this in a separate blog
There will be some restrictions on the kind of property you can move to and sheltered accommodation is generally a no-no. Any property that reduces the market audience will be difficult to seek LLL as it increases the lenders risk in getting their money back.
Whatever the case, the lender will want to understand why you want to move.
If any of this is of interest to you and you’d like a no obligation informal conversation with a qualified advisor, please get in touch on 07788 219647 or email email@example.com
Next time, we’ll cover what happens if you want to repay the Lifetime Mortgage early.
Tagged as: Moving
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