Can I sell my house and still live in it?

From releasing equity to maintaining the living situation or simply wishing for more flexibility, there are many reasons why someone asks if they can ‘sell my house and still live in it.’

It’s a route that is considered more unconventional and one that’s often forgotten about, but that doesn’t mean it’s impossible. For those not looking for another house at the end of a sale, there are different options to consider.

Through this article, we’ll cover everything you need to know about how to sell your house while still living in it, including the choices, the pros and cons and the costs of each.

What are the options if you want to sell your house and still live in it?

From home reversion schemes to lifetime mortgages, and even selling to family or friends, there are different routes if you wish to sell your house and still live in it. Some allow you to stay in your home for life, while others might offer more flexibility but impact your inheritance or financial future.

It’s important to consider which would be best for your circumstances, with pros and cons to each.

One previous option which is now no longer is the ‘Sale and Rent Back scheme’ where you could sell your home to a company and rent it back, as this was banned in 2012 due to several issues.

Karl McArdle, the CEO and Co-Founder of The Property Buying Company says: “We’ve spoken to so many homeowners who feel overwhelmed by the choices out there. The key thing is to make sure you’re fully informed and stay away from Sale and Rent Back schemes.

"Speaking to a financial advisor or getting legal advice can really help, and if you’re unsure, we’re always happy to chat and help you explore your options.”

Speaking of options, here are the choices you can decide between:

Home reversion schemes

A home reversion scheme refers to selling all or part of your home to a provider in exchange for a lump sum of cash or regular payments.

With this, you’re able to sell your house and still live in it either rent-free or by paying a small fee for the rest of your life. If this is looking like an attractive option, consider finding an equity release advisor to discuss with.

According to the Equity Release Council, 26,119 customers took out new equity release plans throughout 2023. 

Selling to family or friends

This is where an agreement is made with a family member or friend whereby they purchase the property on the condition that you can remain living there.

While it can be done informally, it’s always best to form a legal agreement if this is the chosen route.

Lifetime mortgages

A lifetime mortgage is like getting a loan against the value of your home. You’re able to remain living in the house and don’t have to worry about monthly payments as the loan (plus interest) gets paid off when you pass away or move into long-term care.

Selling your property to a company or estate agent

If none of the above sounds appealing to you, remember you can always sell your house quickly if needed.

Going through an estate agent is the traditional way, with sale times depending on the market, interest in the property and buyers timelines.

Karl McArdle explains another option: “If you need quick cash and are ready to move on, selling to a company like ours is a straightforward hassle free option. If staying put is the priority but you need to unlock some money, a lifetime mortgage might be a better fit.”

At The Property Buying Company, we can buy homes within seven days. Although, people are rarely ready to move that quickly, so our average is more around the two - three-week mark. On average, we offer 80.42% of the market value.

Several customers have shared their experiences of using our services, including Ruth in Huddersfield whose sale was completed within six days.

“I decided to sell the property because I really needed to release some equity. I did actually have the property on the market previously and I used a traditional estate agent. It was on about two years ago and unfortunately didn’t sell.

“I chose the Property Buying Company because they offered a very quick service and also I could tie that in with the tenant which meant that when the property sale went through, the property wouldn’t be vacant which meant I also didn’t have to pay any council tax.”

Logistics: Can you sell a home with tenants still living there?

A house can be sold with tenants still living there, with this being known as having tenants in situ.

In this case, the buyer will become the landlord but the tenants must know of your intentions to sell before you go ahead with your plan.

If the tenant has signed an Assured Shorthold Tenancy, they have the right to remain within the house for the fixed period of time outlined in the agreement.

If, however, the fixed term is soon to expire or they are on a different agreement (periodic tenancy) you can in some circumstances issue a section-21 notice to gain full possession of the property.

What if the property is part of a divorce settlement - does that change things?

If you wish to sell a property as part of a divorce settlement and one person wishes to remain living there, Citizens Advice suggests that “you’ll both need to decide” what happens if the two parties are on the title deeds.

“You might both own the whole property together - known as 'joint tenancy'. You might own the property in joint names but you each own a specific share of its value - known as ‘tenancy in common’. If you’re tenants in common your shares might be equal - for example, half each - or unequal.”

There are mediators who assist with the solution-finding process if coming to a decision has already proven to be difficult.

How to keep your home ready for viewings while living in it

Kerb appeal, de-cluttering and freshening up your home are all aspects that can help boost the chances of the seller signing on the dotted line.

Some ways to improve your home for viewings while living in it include:

✅ Weed the front of your home, sweep up and hide the wheelie bins.

✅ Crack a window open in the summer or turn the heating on if viewings are in winter.

✅ Clean the house and throw out any clutter.

✅ Revive some old decor choices with throws, cushions, runners, etc.

✅ Make the bed, dress the dining table and add some life through houseplants.

With lived-in properties, some aspects can lower valuations including the condition of the home. Although it may continue to serve you well, a house with lots of repairs and other necessary works could lower the valuation you are given.

Making some small changes and home staging can add value to properties, with Arden Estate Agents estimating a staged home can fetch up to 10% more - pretty impressive!

Staging tips for occupied homes

Staging your home refers to preparing for your house to be sold by styling the place to appeal to a maximum number of buyers.

According to Rightmove, “staged homes sell for 8% more than non-staged homes” with there being some key ways to spruce up the place.

Zoopla recommends making sure “every room (or zone) has a clear purpose” so consider which rooms have turned into multi-use while you’ve been living there and stage them with one purpose in mind.

The UK-based property website also suggests adding “a couple of special finishing touches” to hit the right note between subtle and memorable. 

When staging an occupied home, remember you will be having strangers coming through your personal space and while design tips are helpful, considering security issues is also key.

Michelle Finnamore, a home stager, is quoted in an article highlighting some key points: “They need to be aware of safety first and foremost. And by that, I mean all children’s pictures are put away, things like that. People have cameras on their phones…”

You must hide any important documents or information strewn around the house, including letters with personal details. It would be handy to store these in one location that is hidden away.