A recent ONS report ‘Living longer and old-age dependency- what does the future hold?’ suggests that by 2050, one in four people will be aged 65 year or over and that by 2067 more than half of people ages 65-69 are forecast to still be working.
With an ageing population continuing to live longer could property play an important role in retirement plans for the future? Downsizing has always been a popular choice as people reach their retirement years but how could your property aid your future plans? There are many options available to you.
Downsizing your property to release capital
The sale of property assets could release equity from your home in order to enjoy during retirement. By purchasing a smaller property for a lower price you could release a lump sum to enjoy. If you still have a mortgage on your home, by selling your property and downsizing it may be possible to become mortgage free and reduce your outgoings, helping you to reduce your monthly commitments.
A common reason for downsizing is that the family has grown up and flown the nest often leaving you with a larger property than you require. Smaller accommodation can even have the additional benefits of lower running costs given there are less rooms to heat and perhaps lower council tax.
Downsizing from a family home can be one of the hardest moves to make because you are likely to have formed an emotional attachment to your home having made lasting memories over the years and possibly raised a family there too. When you view smaller properties at first it can be hard to visualise yourself there as there is likely to be less space than you are currently used to. It may also be that you will need to streamline some of your furniture and belongings and it can take some time to get used to this idea.
Top Tip; Always have your existing home looked at by your estate agent early on in the process because your existing homes worth does affect your budget and once you start to discuss selling with the professionals you soon realise if you are ready to make the move. We can arrange a free market appraisal of your existing home to help you get started with this.
Large properties can sometimes require a lot of upkeep both in terms of the property itself but also the gardens or land in which the property sits. Sometimes the ongoing maintenance of a property can become too much as often clients tell us they feel ready to stop cleaning and decorating rooms they no longer need and tending to large family gardens they no longer need. Even if you can cope with the level of maintenance required right now, it may be prudent to consider your needs in the future.
Change of area
Retirement can be a time to reassess lots of lifestyle choice and where you spend your time is certainly one of those choices. The beauty of retirement may be that you are no longer tied to an area because of work. Perhaps you have always harboured dreams of living in a cottage or by the sea? It may even be that you want to be closer to shops and amenities. Our housing needs change at every stage of life and this is another stage at which to reconsider your needs.
Helping your family
An increasing trend we have seen in recent years is for an older generation of property sellers to downsize in order to release capital form their home to allow them to be able to help their children with deposits for homes of their own. Without the help of ‘Bank of Mum and Dad’ many millennials struggle to save for a deposit and this can certainly be a way or making your home work for you and allowing you to support your children in their property aspirations.
Moving home is so individual to each client but with any move it’s important to address why you are moving and what you need to achieve so you can meet these needs and this all starts with getting the right professional advice.
Mortimers have a wealth of experience helping people move with our mortgage advisers, valuers and estate agents all on hand to help you along the way.