Yes, you can sell your house if you have equity release: with a lifetime mortgage the loan and the interest added to it are repaid from the sale, or you may be able to move the plan to your new home, and with a home reversion plan the provider receives its share of the sale price. What varies is the cost. Early repayment charges, the terms of your plan and how much the debt has grown can all change what you are left with, so speak to your provider before you accept any offer.
This guide explains how each type of plan works when you sell, what the Equity Release Council’s standards give you, and the questions to ask. It is general information, not financial advice.
Which type of equity release do you have?
MoneyHelper describes two main types, and they work very differently when you sell.
- A lifetime mortgage is a loan secured on your home. You still own the home. The loan and interest are paid back when you sell, move into care or pass away. If you make no payments, interest is “rolled up” and added to the loan, so the debt grows over time.
- A home reversion plan means you sold all or part of your home to a provider in return for a lump sum or income, and live there under a lifetime tenancy. You no longer own the part you sold.
The Financial Conduct Authority’s 2026 market study into later life mortgages describes the home reversion market as extremely small, with only 25 sales recorded between 2022 and 2025. Lifetime mortgages are far more common, but check your paperwork to be sure which you have.
What happens to a lifetime mortgage when you sell?
It works much like selling with an ordinary mortgage. Your solicitor asks the provider for a redemption figure, and on completion day repays the loan, the rolled-up interest and any charges from the sale money. You receive what is left. Our guide to selling a house with a mortgage explains the mechanics.
The key difference is the size of the debt. MoneyHelper warns that with compound interest you repay far more than you borrowed, because each year’s interest is charged on the balance including earlier interest. Get an up-to-date redemption figure early, so you know the lowest price that would clear the loan.
The no negative equity guarantee
The Equity Release Council’s standards require its members’ lifetime mortgages to include a no negative equity guarantee, so the borrower or their estate will never owe more than the property is worth. MoneyHelper says that you must be told if your lifetime mortgage does not have one.
If the sale price is lower than the debt, ask your provider exactly how the guarantee works for a sale during your lifetime, and whether accepting an offer below market value would affect it. Do not assume.
Free · No obligation
Want to know what a cash buyer would offer?
Tell us about the property in 2 minutes. Vetted buyers, individuals and institutions, reply with offers.
Cash buyers usually offer less than full market value in return for speed and certainty. You are free to turn down any offer.
Can you move your lifetime mortgage to a new home?
Often, yes. One of the Equity Release Council’s product standards is the option to move: customers must be allowed to move to a suitable alternative property and transfer their lifetime mortgage, subject to lending criteria at the time of the move.
MoneyHelper explains that the new property has to be acceptable to the provider as continuing security for the loan. So before you commit to buying, ask your provider whether the home you have in mind would be accepted, and what happens if it is worth less than your current home or does not meet their criteria.
Will you have to pay an early repayment charge?
You might. MoneyHelper says there might be early repayment charges for paying off a lifetime mortgage early, and lists “hard to change” among the downsides of equity release, because agreements can be difficult to alter or include such charges. The FCA’s market study makes the same point: lenders may not seek full repayment until a life event such as death or a move into care, with certain charges that may apply to repayments before then.
There are some protections:
- Moving into long-term care. The Equity Release Council’s standards say any early repayment charge will be waived by the lender if a customer moves permanently into long-term care, under the conditions the standards set out.
- Downsizing protection. Some lifetime mortgages include this feature, which the Equity Release Council describes as giving customers the freedom to repay their loans in full, with no early repayment charge, in the event of downsizing. It reported in 2022 that 63% of products offered it. It is a product feature, not one of the standards, so check whether your plan has it and what conditions apply.
- Voluntary repayments. The standards also give customers the ability to make repayments without charges, subject to lending criteria. That helps reduce the debt over time, but it is not the same as repaying in full on a sale.
What happens with a home reversion plan when you sell?
With home reversion, the provider already owns all or part of your home. MoneyHelper explains that when your home is sold, the money is split between you (or your estate) and the provider, based on the percentage each of you owns.
If you sold only part, you own the rest and can talk to the provider about selling the whole property and dividing the proceeds. If you sold all of it, the home belongs to the provider and you have a lifetime tenancy, so any move is something to discuss with them. MoneyHelper lists “can you transfer the home reversion scheme if you want to move?” among the questions to ask, so check your lease and plan terms with your solicitor.
Advertising
Advertise here
Reach homeowners while they plan a sale: conveyancers, removals, surveyors, clearance and more.
Opens our media pack (PDF, 533 KB).Advertising standards
Why should you involve your provider early?
Because almost every question that decides whether a sale works for you is answered by them. Before you put your home on the market, or accept an offer from anyone:
- Find your paperwork: the offer document, Key Facts Illustration and any letters about your plan.
- Ask for a redemption figure on a likely completion date, including any early repayment charge.
- Ask about moving the plan and whether your next home would be acceptable security.
- Ask about downsizing protection and the care waiver, and the conditions for each.
- Ask how the no negative equity guarantee applies if the price may not cover the debt.
- Tell your solicitor, who will need to deal with the provider’s charge on completion.
If you took advice when you set up the plan, your adviser can help too. MoneyHelper suggests using the Equity Release Council’s directory to find a specialist, and the FCA Firm Checker to make sure any adviser is authorised.
Is a quick sale a good idea with equity release?
Sometimes, but be clear-eyed about the numbers. A quick sale to a cash buyer usually means accepting less than full market value in return for speed and certainty, and with equity release every pound of discount comes out of the equity left after the loan, which may already be much smaller than you expect. An early repayment charge on top can reduce it further.
If you are downsizing and have time, an estate agent sale may leave you with more; our guide to downsizing weighs up the options. If the move is because of care, our guide to selling a house to pay for care explains why there is often more time than families think. And our guide to how much cash buyers pay shows how to judge an offer.
Once you have your redemption figure and know what charges apply, you can get offers for my home from vetted cash buyers on our panel and compare them with your other options. We introduce you with your consent, we never charge homeowners, and there is no obligation to accept.
Common questions
Can I sell my house if I have a lifetime mortgage?
Yes. MoneyHelper explains that the loan and interest are paid back when you sell your home, move into care or pass away. Your solicitor repays the provider from the sale money, or you may be able to move the lifetime mortgage to your new home if the provider accepts it.
Will I have to pay an early repayment charge?
You might. MoneyHelper says there may be early repayment charges for paying off a lifetime mortgage early. The Equity Release Council's standards say charges are waived if you move permanently into long-term care, under the conditions they set out, and some plans include downsizing protection. Your plan documents and provider will confirm what applies.
Can I move my equity release to a new house?
Under the Equity Release Council's standards, lifetime mortgage customers must be allowed to move to a suitable alternative property and transfer the mortgage, subject to the lender's criteria at the time. MoneyHelper adds that the new property must be acceptable to the provider as security.
What if the sale price does not cover the loan?
Most lifetime mortgages from Equity Release Council members include a no negative equity guarantee, which means you or your estate will never owe more than the property is worth. Ask your provider how the guarantee applies to your sale, especially if you are thinking about accepting a price below market value.
Can I sell a house with a home reversion plan?
It depends on how much you sold to the provider. With home reversion you sell all or part of your home, so the provider owns that share. When the home is sold, MoneyHelper explains that the money is split according to the percentage each of you owns. Talk to the provider before you market the home.
Related guides
- Downsizing: should you sell quickly or take your time? Speed versus price, costs, tax and benefits when you downsize.
- Selling a house to pay for care The 12-week disregard, deferred payments, attorneys and deputies.
- Selling a house with a mortgage Redemption, early repayment charges, porting and negative equity.
- How much do cash house buyers pay? Why offers are below market value, and how to judge one.