A Guide to Downsizing Your Home
Looking to move into a smaller home? Downsizing can bring significant advantages, including lower maintenance and household bills and a better quality of life. If you’re ready to take the step, we can help.
Explore the pros and cons of downsizing your home, important things to consider and the options available in our comprehensive guide.
What does downsizing your home mean?
Downsizing refers to moving to a smaller or less valuable home. People may downsize because they can’t keep up with their home’s maintenance, want to release equity or fancy a change of scenery.
The pros and cons of downsizing
Downsizing your home comes with pros and cons, including the following:
| Pros | Cons |
| Moving into a smaller house can help you release equity*. |
Downsizing entails less living and storage space. |
| Downsizing your home can help you cut down on maintenance and utility bills. |
You may face extra costs, including Stamp Duty, survey fees and removal charges. |
| You can move to a better location and improve your quality of life. |
Moving out of the home you’ve lived in for many years can be emotionally daunting. |
*Home equity is the difference between the amount you owe on a mortgage and the value of your property. If you want to sell and downsize your home, you can release the equity you’ve built up to pay off the mortgage. If you’ve repaid it, any surplus money is yours.
If you sell your home for £500,000 and buy a bungalow for £250,000, this frees up £250,000, assuming you paid off the mortgage.
Things to consider before downsizing
Ready to downsize your home? Consider the following to ensure it’s the right decision:
• Reasons – Why do I want to downsize?
• Time – Is now the right time to downsize?
• Location – Does it suit my needs for the future?
• Property – What property type would suit my needs best?
• Mortgage – Do I want to pay off my mortgage before selling?
• Costs – Can I afford the extra costs, including estate agent and conveyancing fees, as well as survey and removal charges?
If the answer is still yes, it’s time to prepare your home for sale. Start decluttering and throwing away or donating anything you don’t need, which will keep removal costs down.
Learn more about the process of selling your home in our handy guide, and browse unique Help to Sell schemes for a stress-free move.
Downsizing options
Some downsizing options include:
• Downsizing to a smaller home
• Moving from a house to a flat
• Moving into a bungalow
• Buying a retirement property
• Buying a shared ownership home
Browse our modern and energy-efficient homes, offering maximum comfort and excellent features. Our 2 bedroom homes are ideal for downsizing, helping you declutter without compromising on quality and style.
Discover fantastic homebuying offers and low-deposit schemes. Contact our Sales Advisers today to reserve your new home.
FAQs
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Yes, there can be a downside to downsizing, such as having less space and potentially having to get rid of belongings, unexpected costs with moving such as legal fees, and choosing a smaller home that is unsuitable for future needs.
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If you are selling your current home and purchasing a new smaller one when downsizing, you may still have to pay stamp duty, depending on the value of the property you are buying. Most people downsizing to a less expensive property are exempt from capital gains tax, meaning all the equity that is released by downsizing your home is tax-free.
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Downsizing can save money by reducing your outgoings on mortgage payments, utility bills, and home maintenance costs.
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Advantages of moving to a smaller house can include lower expenses, less maintenance, and potentially a simpler lifestyle.
Help to Sell Schemes
We have a range of schemes to help you sell your existing home.
Parent Power
Parents can also help. Typically they (or a close family member) could help you with your deposit, or guarantee your mortgage, or act as a joint applicant.
Low Deposit Schemes
If you have a low deposit, we have a variety of schemes to help make moving more affordable.
Key Worker Scheme
We could help make your move with our Key Worker Deposit Contribution Scheme.
Own New - Rate Reducer
Own New - Rate Reducer is a brand-new scheme available on new build homes that could mean lower mortgage rates and reduced monthly payments.
Part Exchange
We could be your guaranteed buyer. No stress or fuss, just an easy move for you and your family.
