Selling your home and voluntary surrender ('handing back the keys')

Introduction

If you sell your home and the sale does not cover the outstanding mortgage on the home, you should note that you will still owe the difference to the lending institution.

Note on claiming Rent Supplement

If you sell your home and move to privately rented accommodation, you may be able to qualify for Rent Supplement. However, as well as meeting the means test requirements, there are a number of other requirements. For example, you generally have to either:

• Have been a tenant for at least six months, or
• Have been placed on a local authority housing list after a full housing assessment, or
• Have moved from accommodation for homeless people.

These conditions do not apply to people who are aged 65 or over, or if you are receiving a disability payment.

Voluntary surrender ('handing back the keys')

If you 'hand back the keys' of your house to your mortgage lender, you will remain liable for any outstanding debt, including any accrued interest, charges, legal, selling and other related costs. This course of action may have other impacts in relation to, for example, your entitlement to social welfare benefits. You should get independent legal advice before considering this course of action.