Can you move your equity release plan if you relocate to Europe? Mark Gregory answers this reader’s question and offers an insight into the Swedish equivalent
I released equity on my property about five years ago and I’m thinking about relocating to another part of Europe, maybe Sweden. Is it possible to take my equity with me to do this, or do I need to stay in the UK?
Thank you for your question, and though you have not specified what product you have, if it is a Lifetime mortgage, you will not be able to transfer this from the UK to Sweden as the basic criteria for equity release in the UK is that you must be a UK resident, you must be aged at least 55, and the property needs to be in either Scotland, England, Northern Ireland, or Wales.
It is important to note that if you do decide to move and repay your Lifetime mortgage early you may incur early repayment charges.
These charges can be variable or fixed so it is important to ask your provider for a current redemption statement where any charges or fees will be disclosed to you.
Additionally, some providers have downsizing protection which means charges can be waived if you are moving to a property that is not acceptable in the UK, and some providers extend this to if you are simply moving home. Therefore, it is wise to consult with your equity release provider to discuss your options and any potential early repayment charges that may apply.
Coincidentally, I was recently provided with a report that was highlighting the growth of equity release throughout the world, and I can confirm that in Sweden equity release products are commonly referred to as ‘omvända bolån’ or ‘reverse mortgages’.
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The report states that these plans allow homeowners that are aged 60+ to release some of the equity tied up in their homes without moving. The Swedish market for these products has grown in recent years, with several providers offering variations of equity release, though the structure and regulation may differ from those in the UK.
For example, Hypotekspension are the first and leading equity release provider in Sweden, experiencing significant growth in recent years, and 60plusbanken are a newer provider which offers a similar product with additional guarantees.
I would like to add that if you decide not to move to Sweden, it may be a good time to review your existing plan to ensure that it is the best plan for your current and future requirements. Our expert advisers are here to help and review your plan and they can be contacted directly on 0800 802 1015 without the need to go via any unnecessary call centres.
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
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