What are benefits of downsizing?
Downsizing is a debt free way of accessing the cash that is in your property; you still own 100% of the property and you will be able to leave it as an inheritance for family.
In addition, by moving to a smaller more manageable property, you may find that your household bills are lower, so your cost of living could well be cheaper.
Also by keeping in mind your requirements for later life when choosing your new home, you can choose a property that is more easily assessable and easier to maintain, such as a bungalow or flat.
Things to be aware of when downsizing
Moving house is expensive, so the associated costs will eat away at some of money you were hoping to free up. When looking at the cash you could release by downsizing to a smaller property, it is important to take into account the valuation and estate agents fees, stamp duty, legal fees and of course actual moving costs.
To put this into context, based on the average property sold which currently stands at £224,144, the average cost of selling and moving to a new home across the UK is £10,210 but this of course will depend on the value of your property.
And don’t forget on top of that there may be further costs for making home improvements or buying new furniture too.
In addition to moving to a smaller home, downsizing often involves moving to a cheaper area which in turn means leaving the neighbourhood, friends and neighbours you may have known for years. Whilst some may embrace the thought of venturing to pastures new, added to the upset of leaving the family home, others may find this a huge wrench.
Try the Equity Release Calculator to see how much cash you could release