Downsizing your home traditionally is seen as an option once offspring have flown the nest, or when the task of maintaining, repairing, cleaning and heating a large home becomes too onerous.

However, a 2016 study by Saga found that 2.3 million UK homeowners aged 55 and over – almost 40% of people in that age bracket – are downsizing their home in order to raise money during their retirement.

Of this number of people, some will have been planning to downsize all along, but some may be forced into selling due to a lack of proper financial planning in their retirement years.

Our job at Magenta is to make sure our clients know in advance whether downsizing will be necessary and, if so, when and how much capital will need to be released, or whether downsizing can just be an option for the future, if you find in later years that the family home gets too much.

We have helped many clients through this scenario and understand that many people will find the concept of downsizing and moving home difficult and emotional. There are many things to consider including:

  • When is the right time to sell?
  • Do you want to move closer to your family, the city or by the sea?
  • Do you still have a mortgage or debts to repay?
  • Are you planning on freeing up capital to boost your pension?
  • What about nursing care in the future?
  • How will you ‘downsize’ your belongings to fit your smaller home?

We know that deciding whether to remain in the family home or to sell, is complicated.  There are a lifetime of memories tied up in your beloved family home and the decision to sell can be emotionally fraught as well as financially confusing.

At Magenta we will take into account your financial position as well as your personal objectives to ensure that downsizing the best option for you to meet your future needs and live the life you envisioned.

Our caring team will take into consideration your reasons for downsizing and also factor in:

  • how much money you need to generate to supplement you pension income
  • the effect selling the family home will have on your estate planning
  • any potential negative effects downsizing might have on your state benefits or funding for long term care

Whatever you’re thinking of doing in order to enjoy your retirement, planning well ahead and getting sound advice before doing anything is always the best idea – so talk to us now!