Joint equity release: what happens if one partner dies or moves to care
With a joint equity release plan, such as a joint lifetime mortgage, the loan usually continues if one partner dies or moves into long-term care. The surviving partner can normally stay in the home, and the loan is typically repaid only when the last borrower dies or moves into long-term care.
It is not an easy subject, especially after a bereavement or a difficult care decision, but knowing how your plan works can give you both some reassurance. We do not provide financial advice.
How joint equity release plans are structured
Both partners are named as joint borrowers, and the plan runs until the last borrower dies or moves permanently into long-term care. Both usually need to meet the lender's minimum age, commonly 55, and the amount released is usually based on the younger borrower's age. Plans from Equity Release Council members include a right to remain for life, subject to the plan's terms, and a no-negative-equity guarantee. Our guide to how equity release works explains these protections alongside the risks.
If one partner dies
The surviving partner can usually stay in the home, and the loan carries on unchanged. No repayment is triggered. The lender will need to be told and will usually ask for a copy of the death certificate. Our guide to later life finances when you live alone covers pensions and support after a bereavement.
Ownership of the property may change, depending on whether you owned it as joint tenants or tenants in common. This is separate from the equity release plan, and a solicitor can explain how the deceased partner's share passes.
If one partner moves into long-term care
If one partner moves permanently into care while the other stays at home, the loan usually does not become repayable. The home is also usually ignored in the council's financial assessment while a partner lives there. See equity release and care home fees.
In England in 2026/27, people with capital above £23,250 usually pay the full cost of their care, and capital below £14,250 is ignored in the council's financial assessment (GOV.UK).
Once both borrowers have died or moved into long-term care, the home is usually sold and the loan repaid, with anything left passing to the estate. Lenders typically allow around 12 months for the sale. Our guide to equity release and your beneficiaries explains what executors usually need to do.
Sole plans, younger partners and other occupiers
Sole plans and younger partners
If only one partner is named, the plan usually ends when that person dies or moves into care, even if their partner still lives there. Sometimes a plan is taken in the older partner's sole name because the younger partner is below the minimum age. This may allow a larger release, but the younger partner would have no right to stay once the plan ends. Some lenders may allow a partner to be added later.
Other occupiers
Adult children or others living in the home who are not borrowers are usually asked to sign a waiver confirming they have no right to stay once the plan ends. Our guide to equity release and your home covers lodgers, family members and other plan conditions.
Early repayment charges after a death or move into care
Early repayment charges are not usually due when the loan is repaid after the last borrower dies or moves into long-term care. Some joint plans also waive them if the survivor repays within a set period after the first death or move into care, for example three years. See equity release early repayment charges explained.
The Equity Release Council explains that fixed early repayment charges are set at the outset and commonly start at around 10% of the amount borrowed in the early years, tapering over time.
Joint equity release and inheritance
Interest usually rolls up, reducing what is left for beneficiaries. Some plans let you protect a percentage of the home's value, which lowers the amount you can release. See equity release and inheritance tax.
As a guide, the Equity Release Council reported an average lifetime mortgage rate of 7.24% APR in the second quarter of 2025; rates change, so check current figures.
What to check before taking out a joint plan
- That the plan is a genuine joint lifetime mortgage, not a single-name plan with one partner added as an occupier.
- Whether the lender is an Equity Release Council member.
- How the plan fits with your property ownership.
- What evidence is needed if one of you moves into care, and whether early repayment charges are waived.
It can help to review your Lasting Power of Attorney arrangements too. An FCA-regulated adviser and a solicitor can take you through these points.
Not sure which option fits your circumstances?
Written and reviewed by the Later Life editorial team. Last updated .
Frequently asked questions
Does a joint equity release plan end when one partner dies?
Usually not. With a joint lifetime mortgage, the plan normally continues on the same terms and the surviving partner can keep living in the home. The loan and rolled-up interest usually become repayable only when the last borrower dies or moves permanently into long-term care. It is worth checking your own plan’s terms.
Can my partner stay in our home if I move into a care home?
If you are both named borrowers on a joint plan, your partner can usually stay and the plan continues. If the plan is in your sole name, it may become repayable when you move into long-term care, even if your partner still lives there. See equity release and care home fees.
What happens if my partner is not named on our equity release plan?
A partner who is not a borrower does not usually have a right to stay once the plan ends. If the named borrower dies or moves into long-term care, the loan may become repayable and the home may need to be sold. Some lenders may allow a partner to be added later, so it can be worth asking.
Are early repayment charges waived after a partner dies?
It depends on the plan. Charges are usually not due when the loan is repaid after the last borrower dies or moves into long-term care. Some joint plans also waive them if the survivor repays within a set period after the first death or move into care. Check the plan document or ask an FCA-regulated adviser.
What happens to the plan when the last borrower dies?
The loan and rolled-up interest become repayable, usually from the sale of the home, and anything left passes to the estate. Executors are normally given a period to arrange the sale. Plans meeting Equity Release Council standards include a no-negative-equity guarantee, so the estate should not owe more than the home’s sale value.