FINE & COUNTRY THE LOWDOWN ON DOWNSIZING
The kids have flown the nest, and the once-bustling family home now feels a bit too large—and perhaps a bit too much to manage. If this sounds familiar, it might be time to consider downsizing. For some, the idea of leaving the family home can be an emotional decision, especially after many years of memories. For others, it's a welcome opportunity to simplify life and reduce the demands of maintaining a larger property.
Whatever your mindset, Jonathan Handford from Fine & Country Leamington Spa outlines a few important factors to consider when thinking about downsizing.
46
THE BENEFITS OF DOWNSIZING There are plenty of lifestyle perks when moving from a larger property to a smaller one. You’ll likely no longer need to deal with the maintenance of a big house, sprawling garden, or features you rarely use, like a conservatory or even a swimming pool. According to NerdWallet: Finance smarter, 41% of UK homeowners aged 65 and older acknowledge that their homes are larger than necessary.
A smaller home in a well-maintained development or retirement community often means improved security and a stronger sense of community.
Financially, downsizing can be a smart move. You could see notable savings on council tax, utility bills, maintenance, and home insurance. Plus, fewer rooms mean fewer things to clean and repair - always a bonus.
DO THE MATHS In many households, the biggest monthly expense is the mortgage. If you've paid off your mortgage, or are close to it, you may be in a good position to sell your current home, pay off any outstanding balance, and use the equity to purchase a smaller property outright, avoiding the need for another mortgage.
However, if your mortgage still has a long way to go, and especially if you’re approaching or in retirement, securing a new mortgage can be more challenging. Most lenders are cautious when offering loans to borrowers over a certain age, so it’s important to think carefully about your monthly budget. Whether you’re renting or buying, your income, likely your pension, must
comfortably cover all associated costs including deposit, stamp duty, legal fees, and moving expenses.
DON’T FORGET CAPITAL GAINS TAX In the UK, if the property you're selling has been your main residence for the entire period of ownership, you’ll usually be exempt from paying Capital Gains Tax (CGT) under Private Residence Relief. However, if the property was let out at any point, or if it’s not your primary residence, you could be liable for CGT on any profit made from the sale. It’s wise to consult a tax adviser or accountant to clarify your position.
TIMING IS EVERYTHING The property market can be unpredictable. If conditions aren’t favourable, it might be worth holding off for a few months to secure a better price for your current home. That said, homes in secure developments and retirement villages tend to remain in demand, and delaying too long could mean missing out on an ideal property that suits your new lifestyle.
CONSIDER LETTING INSTEAD If your home is mortgage-free or has a small remaining balance, you might want to consider letting it out instead of selling. Rental income could help boost your retirement finances, provided it covers the mortgage (if applicable), upkeep, and any potential void periods. You’d need to be comfortable acting as a landlord, or alternatively, work with a letting agent to manage the property on your behalf.
A SIMPLER LIFE, FINANCIALLY AND PRACTICALLY If approached thoughtfully, downsizing can be an excellent step towards a simpler, more manageable lifestyle. It may not only
free up your time and energy but also enhance your financial security during retirement.
Before making any final decisions, it’s wise to speak with an independent financial adviser or a trusted estate agent. With the right support, downsizing can be the beginning of a rewarding new chapter.
For advice on selling or buying property, please contact Fine & Country Leamington Spa on 01926 455950 or visit
www.fineandcountry.com
LIVE24-SEVEN.COM
THE MIDLANDS PROPERT Y GUIDE F INE & COUNTRY
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116
