diff --git a/electrum/lnchannel.py b/electrum/lnchannel.py
index df34e8c8b..683f44a62 100644
--- a/electrum/lnchannel.py
+++ b/electrum/lnchannel.py
@@ -327,7 +327,7 @@ class AbstractChannel(Logger, ABC):
         is_local_ctx = who_closed == LOCAL
         return is_local_ctx, sweep_info
 
-    def maybe_sweep_htlcs(self, ctx: Transaction, htlc_tx: Transaction) -> Dict[str, SweepInfo]:
+    def maybe_sweep_htlcs(self, ctx: Transaction, htlc_tx: Transaction) -> Dict[str, MaybeSweepInfo]:
         return {}
 
     def extract_preimage_from_htlc_txin(self, txin: TxInput, *, is_deeply_mined: bool) -> None:
@@ -682,7 +682,7 @@ class ChannelBackup(AbstractChannel):
         else:
             return {}
 
-    def maybe_sweep_htlcs(self, ctx: Transaction, htlc_tx: Transaction) -> Dict[str, SweepInfo]:
+    def maybe_sweep_htlcs(self, ctx: Transaction, htlc_tx: Transaction) -> Dict[str, MaybeSweepInfo]:
         return {}
 
     def extract_preimage_from_htlc_txin(self, txin: TxInput, *, is_deeply_mined: bool) -> None:
@@ -1939,7 +1939,7 @@ class Channel(AbstractChannel):
         assert not (self.get_state() == ChannelState.WE_ARE_TOXIC and ChanCloseOption.LOCAL_FCLOSE in ret), "local force-close unsafe if we are toxic"
         return ret
 
-    def maybe_sweep_htlcs(self, ctx: Transaction, htlc_tx: Transaction) -> Dict[str, SweepInfo]:
+    def maybe_sweep_htlcs(self, ctx: Transaction, htlc_tx: Transaction) -> Dict[str, MaybeSweepInfo]:
         # look at the output address, check if it matches
         d = sweep_their_htlctx_justice(self, ctx, htlc_tx)
         d2 = sweep_our_htlctx(self, ctx, htlc_tx)
diff --git a/electrum/lnwatcher.py b/electrum/lnwatcher.py
index 354b0a6a0..4db9b04e8 100644
--- a/electrum/lnwatcher.py
+++ b/electrum/lnwatcher.py
@@ -184,9 +184,13 @@ class LNWatcher(Logger, EventListener):
                 # the spender might be the remote, revoked or not
                 htlc_sweepinfo = chan.maybe_sweep_htlcs(closing_tx, spender_tx)
                 for prevout2, htlc_sweep_info in htlc_sweepinfo.items():
+                    self.lnworker.wallet.set_default_label(prevout2, htlc_sweep_info.name)
+                    if isinstance(htlc_sweep_info, KeepWatchingTXO):  # haven't yet decided if we want to sweep
+                        keep_watching |= htlc_sweep_info.until_height > local_height
+                        continue
+                    assert isinstance(htlc_sweep_info, SweepInfo), htlc_sweep_info
                     watch_htlc_sweep_info = self.maybe_redeem(htlc_sweep_info)
                     htlc_tx_spender = self.adb.get_spender(prevout2)
-                    self.lnworker.wallet.set_default_label(prevout2, htlc_sweep_info.name)
                     if htlc_tx_spender:
                         keep_watching |= not self.adb.is_deeply_mined(htlc_tx_spender)
                         self.maybe_add_accounting_address(htlc_tx_spender, htlc_sweep_info)