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Paying off an equity loan

My husband and I were lucky enough to buy a property last year using a council equity loan as at the time our wages were low. I've since received a promotion from work and my husband is now a self employed plumber earning much more then he was on as an employee.

AS part of the equity loan rules we are not allowed to rent out the property. However my husband and I have been offered to live rent free in my parents property for 3 years as they are going to be moving abroad.

I was hoping to pay off the equity loan which is £70,000 by asking my current mortgage provider to extend our mortgage to incorporate this amount. Has any one had any success in doing this?
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