Vive pickup physics - swinging lantern

I have a static mesh for a lantern that I’d like the player to be able to pick up. The lantern should swing naturally by the handle like in the game Amnesia: TDD. The default VR template uses the attach to component node, which seems to lock the position of the mesh to the angle you pick it up. Is there a way to get the mesh to still use physics when it is grabbed? I’ve been looking at physics constraints/handles, but I can’t figure out how to implement them with the default VR template setup.

Few weeks back I have published a step-by-step tutorial covering exactly what you are asking: