Can I Sell My House With Equity Release in Surrey?
By Lewis Sutehall | Created on 20th October 2025
Many people with homes in Bookham, Cobham and Claygate opt to take out equity release products to release funds from the value of their property. If you are considering releasing equity from your property, then there are some factors to consider before you make your decision.
For example, if you choose to sell your property after taking out an equity release loan, it can be more complicated. You might also face financial penalties if you decide to sell, but it is generally possible to sell your property with equity release.
Whether you are looking for more information about equity release before making a decision, or you already have taken out equity release and are wondering whether you can sell, this article should answer your questions.
What is Equity Release?
Equity release is a type of mortgage that allows homeowners to borrow money against the value of their property. Releasing equity provides a tax-free cash amount without selling your home and you can continue living in the property.
There are two main types of equity release plans:
Lifetime Mortgage – A lifetime mortgage involves taking out a loan against your property which accumulates interest. Both the loan and interest are paid off when the owner dies or moves into long-term care. This is the most common type of equity release product. There are different options for paying interest, including a roll-up option, where interest is added to the loan and is compounded. Alternatively, you can choose to pay monthly interest so that the loan amount does not increase. Interest rates for equity release loans are usually higher than for standard mortgages.
Home Reversion Plan – This plan is where you sell part of your home in exchange for a lump sum, or you can choose to receive regular income payments. By selling a portion of your home, it reduces the value of your estate, so you won’t leave as much to beneficiaries when you die. However, with this type of equity release, you do not accrue interest or any debt.
Can I Sell My House After Equity Release?
Yes, it is still possible to sell your house after equity release, but you will need to settle the loan and any interest if you have a lifetime mortgage. You will usually be required to pay an early repayment charge if you sell a property rather than it being sold when you die or move into long term care.
Why Sell Your House When You Have Released Equity?
There are lots of reasons why people choose to sell their house when they have equity release because circumstances often change. You might want to move to a new area to be closer to family, or you choose to downsize into a smaller property. Another reason you might choose to sell is because there has been an increase in the property value and you want to access additional funds.
Pros & Cons of Selling a House With Equity Release
If you are unsure whether selling is the right option, these pros and cons are worth considering:
Pros
Additional equity – You may be able to access further equity after you pay off the loan and sell the property.
Flexibility – You will have the freedom to move, whether it is to be closer to a relative or to live in an area with better amenities that are more suitable as you get older.
Possibility to port – Some equity loans allow you to ‘port’ your loan, so if you wanted to downsize, you could move the loan to a new property that you buy.
Cons
Financial penalties – The terms of the loan may include early repayment charges.
Reduced inheritance – If you sell your property and pay off your equity release loan, this can reduce what is left to beneficiaries.
Loan must be repaid – You will have to pay off the loan and interest, so you won’t receive as much from the proceeds of the sale.
How Does Equity Release Work When Selling a House?
When you sell a house with equity release there are some additional processes compared to selling without an equity release product. These are the steps to take:
1. Contact the lender
The first step is to contact your equity release provider to advise them of your plans to sell and to check the repayment terms and any other fees you will need to pay.
2. Put your house on the market
Once you have spoken to the provider, you can start the sale process by putting your property on the market with an estate agent.
3. Accept an offer and complete the sale
If you receive an offer you want to accept, agree the sale and complete the property transaction, using a conveyancer who is experienced in selling properties with equity release.
4. Arrange to settle the loan
Your conveyancer will make arrangements to pay off your equity release product when the sale is completed. This is how it works depending on the type of plan you have:
Lifetime mortgage – If you have taken out a lifetime mortgage you will need to settle the debt and there may be early repayment charges to pay, on top of the loan and interest. You conveyancer will arrange the repayment before any proceeds of the sale is passed onto you.
Home reversion plan – If you have a home reversion plan, when you sell your property, you will only receive the proceeds from your portion of the property. The lender will receive their share of the property value. The amounts that both parties receive are based on the sale value and not the value when the plan was taken out, so any equity accumulated since you took out the plan will be split based on the ownership percentages.
Can I Port My Equity Release Loan?
In many cases, you will be able to port your loan if the lender deems the new property to be suitable. They will review the value, location, construction and condition to decide whether the property is eligible for porting the loan to.
If you are buying a property that has a lower value, the lender may request that you pay off some of the loan when you sell.
Will Selling Affect My Plans for Inheritance?
Yes, selling your home will usually affect plans for inheritance as compounding interest over many years could reduce what is left to your beneficiaries. It is possible to ringfence a set percentage of the property value when you take out equity release to ensure a certain amount is left.
If you are worried about the inheritance impact of selling your equity release property, it is a good idea to seek financial advice before you decide what to do.
What Alternatives Exist to Selling Home with Equity Release?
An alternative option is to port the loan to a new property, or you may be able to change your equity release product to one that is more suitable. For example, you might be able to make voluntary payments to reduce the outstanding loan amount or access a drawdown facility to access more funds. Your provider should be able to explain any options that are available to you if you don’t want to sell your house with equity release.
FAQs when selling equity release property
Do I need to disclose equity release to estate agents and potential buyers upfront when selling my Surrey home?
Yes, you must inform your estate agent about equity release immediately, and this information should be disclosed to serious buyers early in the process. Estate agents need to know because equity release affects the conveyancing timeline and requires specialist solicitor involvement—most Surrey agents in areas like Guildford, Woking, and Epsom have experience with equity release sales but need this information for accurate sale projections.
While you’re not legally required to advertise equity release in marketing materials, withholding this information from buyers during negotiations can cause sale collapses when revealed during conveyancing. Professional practice dictates disclosing to buyers once they’ve viewed and expressed serious interest, typically before accepting offers. This transparency prevents wasted time and builds buyer confidence. Your estate agent should frame this neutrally—equity release is common among Surrey homeowners and doesn’t indicate property issues, merely requiring additional conveyancing steps that competent solicitors handle routinely.
How do I accurately calculate what money I’ll actually receive after selling my equity release property in Surrey?
Calculate net proceeds by starting with your expected sale price, then deducting: the original equity release loan amount, accumulated compound interest (which can be substantial after several years), early repayment charges (typically 2-8% of the loan reducing annually), estate agent fees (1-2% in Surrey), solicitor fees (£1,500-£3,000 for equity release conveyancing), and standard selling costs like EPC. Request a redemption statement from your equity release provider showing the exact settlement figure including all interest and penalties—this figure changes daily due to compounding interest, so ensure it’s dated for your anticipated completion date.
For example, a Surrey property in Cobham selling for £650,000 with an original £150,000 equity release loan from 2018 at 5.5% compound interest would accumulate to approximately £207,000 by 2025, plus potential early repayment charges of £10,000-£15,000, plus £13,000-£15,000 in selling costs, netting approximately £413,000-£422,000. Always build in a buffer as completion delays increase daily interest charges.
Will having equity release make my Surrey property harder or slower to sell compared to standard sales?
Equity release typically adds 2-4 weeks to the sales process but shouldn’t significantly impact buyer demand for well-priced Surrey properties. The additional time stems from conveyancing complexity—your solicitor must liaise with the equity release provider, obtain redemption statements, and coordinate settlement timing precisely with completion. However, equity release doesn’t affect property marketability in desirable Surrey locations because buyers focus on property quality and price rather than seller financing arrangements.
Properties with equity release sell successfully if priced correctly according to local market conditions. Mitigate delays by instructing a conveyancer experienced in equity release transactions from day one, obtaining your redemption statement early, and maintaining close communication with your equity release provider throughout the sale process.
What happens if my buyer withdraws after I’ve already triggered early repayment charges on my equity release loan?
If a sale falls through after you’ve committed to repayment, you’ll still owe the early repayment charges unless your equity release plan includes protection provisions—check your terms immediately. Most lifetime mortgages calculate early repayment charges when you notify the lender of your intention to repay, not when you accept an offer, but some providers trigger charges upon formal redemption notice tied to exchange of contracts.
If your sale collapses, you have several options: quickly find a new buyer and proceed with redemption within the notice period (typically 3-6 months), negotiate with your lender to reset the redemption process (some Surrey-based providers show flexibility for genuine buyer withdrawals), or keep your property and continue the equity release plan. To protect yourself, delay formal redemption notice to your equity release provider until exchange of contracts rather than at offer acceptance stage. Ensure your Surrey conveyancer coordinates this timing carefully, and consider accepting offers only from well-qualified buyers with approved mortgages and no onward chain to minimise withdrawal risk.
Should I arrange a professional valuation of my Surrey property before marketing with equity release, and does this differ from standard sales?
It goes without saying that you should get an estate agent valuation from local experts like Davies Property Partners. However, obtaining an independent RICS valuation is sometimes an important extra step when selling a home with equity release, because accurate pricing affects your net proceeds calculation and negotiation strategy.
Surrey’s property market varies significantly between areas—prime villages like Oxshott and Cobham command premiums while other areas remain more price-sensitive, making professional valuation essential for realistic expectations. Your equity release provider may require their own valuation when processing redemption, but this serves their purposes, not yours.
An independent valuation helps you: calculate realistic net proceeds after loan redemption, set an optimal asking price that attracts buyers quickly (important since daily compound interest reduces your equity), and negotiate confidently knowing your property’s true market value. Unlike standard sales where overpricing just extends marketing time, overpricing with equity release costs you daily in accumulating interest while under-pricing sacrifices proceeds you need to repay the loan and fund your next move. Factor this valuation cost into your selling budget alongside other expenses when planning your Surrey property sale.
Considering selling a property with equity release?
While selling your house with equity release comes with extra complications, it can help you to fulfil your plans such as moving to a more suitable area. We can help with selling or buying a new property in East Horsley, Esher, Thames Ditton and surrounding areas.
I’ve been with Davies Property Partners since March 2018, albeit it feels like I’ve always been here. I started my career in agency in 2007, all of which has been based in Elmbridge. My passion for property started at a young age, and I would often work in construction between school terms. I consider myself very fortunate to be working in an area with some wonderful homes. These homes are often made wonderful by the people and families living in them. Property is such an exciting industry, but is one which often comes with its stresses. Whether you’re dealing with someone’s first purchase, upsizing, downsizing or simply changing areas. Every transaction is of the greatest importance and needs the right care, skill, knowhow and above all experience. It’s a wonderful feeling to help achieve the best result for our clients or advise those buying. I feel flattered every time someone comes to me for my advice or opinion. I am always here to help!
