Downsizing Dilemma

AS MANY as three million people are planning to rely on their home for a pension in older age, a recent survey suggests.

With 16 per cent of retired home owners saying they expect to sell or rent their property to release equity and achieve a tax free lump sum of cash.

With private and company pensions looking uncertain, many more people are investing and relying on their property as a source of income in their older age.

The reality however, is downsizing can be a very emotional experience and leaving the family home and memories is never going to be easy.

Richard Mace of Besley Hill says: “I have been selling properties for over 35 years and many times have been to value homes where older owners are considering moving to a smaller property. The easiest thing to do is nothing, consequently many people postpone the idea and then I go back to see them maybe 10 years later. This is when they find they have to move due to varying pressing reasons, possibly financial or finding a larger property and garden hard to cope with”

The same statement is said again and again.

“I only wish we had done this when you first came to see us when we were fitter and more able to cope with a move”.

Although downsizing is not easy, organisation and careful planning is essential.

Consider why you may need to do this as your home is an important element of retirement planning.

The usual reasons for moving to a smaller home are that they are easier to manage.

A smaller house and garden means less work and upkeep and will allow you to release equity and unlock some of the value tax free from your property.

As people are now living longer they can use some of the funds to supplement their pension income, especially as house prices have increased and this can provide an asset above expectations and the surplus monies released can be enjoyed during retirement and the golden years.

Also consider location, perhaps closer to town and local amenities like shops, doctors and bus routes.

Draw up a list of items you feel you could not live without as this will help you choose what size of home you may need and if stairs and later mobility could be an issue, a bungalow or ground floor flat, may be a consideration.

My advice is mentally prepare and plan ahead.

Get your property professionally valued and talk through the available options.

At Besley Hill we will be happy to provide a free market appraisal on your current property and provide advice on a range of available options and suitable smaller homes.

Call 01453 542395 for a free market appraisal.