Can You Move To a New Home When You Have an Equity Release Scheme?
An equity release scheme is an option for earning additional retirement income that is generally recommended to people who are well settled in a property. However there can be deals made where you can move from one property to another if you have an equity release scheme. This can vary according to your plan and where you live though.
In order to relocate from your property to another while keeping your equity release intact you will need to strike an agreement with a group that provides an equity release scheme. For instance, if your scheme is worth a certain amount of money you will be able to get a good plan ready where you can move house. Being able to work with a good credit rating can help as well.
An important reason as to why many groups that offer equity release schemes will be willing to put in clauses where people can move is because of the high costs of moving. It is estimated that it would cost about ten thousand pounds for someone to move from one home to another. Working with an equity release scheme for moving can help in this case.
You will need to be sure that you create a clause for this when you are setting up a plan. Groups that offer equity release schemes can work with you to set up unique plans that can work for your needs. Be aware that after setting up a plan you will generally not be able to change it once it is set in stone.
You should know that there are some places where moving from one house to another while holding an equity release scheme is not allowed. If you are moving from one property in England or Wales to another in that area you will generally be allowed to move if your plan says so. This is not allowed in Scotland though. If you move from someplace in Scotland to another area you will have to pay back any money that you receive in your release scheme.
An equity release scheme can be useful but you should watch for what you can do when it comes to moving from one home to another. You can work with a plan that allows you to move somewhere but you will need to meet certain requirements for it. Also, if you live in Scotland you will not be able to move without losing your payments.