Can I Move House After Using Equity Release?

Equity release plan refers to a financial arrangement where the owner of the property is going to be paid a certain amount of money based on the property, but they will be given the access to those properties and use them. 

At times after retirement, it becomes pretty difficult to manage a big house, and hence the old people prefer opting for this option rather than moving to a small place. 

They can use the amount by the property. The money that is paid to the owner is repaid after they have died or moved into some residential care for a long time. But, what if you want to move to a different house which is more suitable for you in old ages, but you've already applied for the equity release and can it be done? Yes, by the downsizing scheme and let us see what that is along with some equity release advice. 

What is Downsizing?

After a certain age, when both the husband and wives have retired, it is not necessary to have a huge house, and it also becomes difficult to take care of the entire home. This is why they prefer going to a smaller area to take maximum advantage of the money that they have earned while putting the property in equity release. 

Once, they have looked for a smaller property; they can transfer the equity release debt to the new place but in agreement with the equity release provider. 

He should be convinced that the property which you are moving to can also offer him the amount that he has been paying you. Let us see what are the few ways in which it can be ensured that the property that you are moving to is the right decision are.

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1. Go for Better Location 

If you own some expensive property and you are getting a good amount from the provider, it is advisable to move to an affordable and better place.

2. Research About The Market

The retirement flats and bungalows are not very cheap either. There is a lot of demand for them, and they are pretty expensive. Before you think of moving to another property, make sure that you are going to make profits from it and will be able to manage the property as well.

3. Stamp Duty

Because you will be selling your own home, you will not have to pay any tax, but if the property that you are selling, costs more than £125,000, you will have to pay for the stamp duty.  

4. Invest Your Money in The Right Path

After you have sold your old property and settled in the small new one, you will have to decide how you are going to use the profits made. Investing it in the right place is going to increase your earnings and fetch you a better position. Also, save it in an account where you get good interest, so that the amount increases. It is advisable to go for long-term invests.  

Make sure you check everything before making a decision. There are other options like becoming tenants, and you can consider them as well after consulting equity release money saving expert.

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