Property Saviour logo
Call Me Back, Please

Help I Want To Sell My House Downsizing

Property Saviour » Downsizing » Help I Want To Sell My House Downsizing

According to the latest data, more and more people are looking to downsize. This helpful guide will outline the advantages of downsizing your property, and give you the chance to decide if it may be the ideal choice for you.

Table of Contents

What is downsizing?

Downsizing is the term used when you sell your current house and purchase a smaller one. It could be because the property is too large for your needs, or you may want to move to a cheaper and more compact home to free up some of the money tied up in your current residence.

What are the benefits of downsizing to a smaller house?

Downsizing to a smaller house can offer a range of benefits. These include:

  • Spending less time looking after your property
  • Decreasing your regular expenses
  • Releasing equity
Sell my house downsizing
Downsizing is the term used when you sell your current house and purchase a smaller one.

Reasons why you might want to downsize:

Reduce monthly costs

The size of your property is likely to have a direct effect on its maintenance and running costs. Decreasing the amount of space you inhabit can lead to reduced council tax and energy bills, as well as less costly property upkeep.

If your current expenses are proving hard to manage, downsizing to a smaller property may be a sensible choice. This could help you free up some extra money each month.

Fund retirement

For many homeowners, their house is likely to be their biggest financial asset. Therefore, it’s very common to downsize during retirement to free up some cash. This money can then be used for investing and providing extra income.

If you’ve held your property for a long period, and you have little or no mortgage left, this could be a very appealing option.

Pay off mortgage

Mortgage payments can be a large expense each month, and many people dream of not having to make them anymore. This is particularly true as people get closer to retirement.

If your current home is bigger than you need, you may want to move to a smaller one to pay off your remaining mortgage and free up a lot of money every month.

Invest in other property

You may want to access the funds held in your home to purchase a second property. This could be a vacation home or an investment property.

Whether you are looking to use the property for personal reasons or to generate an income, downsizing could give you access to the necessary funds.

Downsizing after divorce or relationship breakdown
Attitudes towards property wealth and inheritance are shifting. Many parents now believe that helping their children purchase a property is more beneficial than leaving inheritance.

Divorce or relationship breakdown

Unfortunately, downsizing may be necessary at times. This is especially true if you’re selling a house after a divorce or breakup. If your household goes from two incomes to one, you may no longer be able to afford to remain in the property.

Help your children buy a property

Attitudes towards property wealth and inheritance are shifting. Many parents now believe that helping their children purchase a property is more beneficial than leaving an inheritance.

In the past, large family homes were often kept to be inherited, however, more and more homeowners are now deciding to downsize and receive the proceeds sooner, offering their children valuable financial assistance at a time when they consider it to be most beneficial.

Pay off debt

If you possess a property but are experiencing difficulty with debts, you may want to contemplate downsizing to reach financial freedom. Downsizing to settle your debt is not a choice that should be taken lightly.

Whether or not you can do this will depend on the amount of equity you have in the property. It is necessary that you carefully ponder all your options and obtain independent financial guidance.

Wanting To Sell My House Downsizing
Downsizing is especially popular as people approach retirement, but it's something that anyone can consider at any point.

When is the right time to consider downsizing home?

Homeowners may downsize for a variety of reasons, so deciding when to do it is a personal choice. There is no one best time to make the move. Some may do it once their children have left, while others may have financial motivation such as wanting to pay off debt.

Downsizing is especially popular as people approach retirement, but it’s something that anyone can consider at any point.

How to downsize your home?

Once you’ve chosen to downsize to a smaller home, you need to consider the best way to do so. Downsizing is similar to any other house move where you need to buy and sell a property at the same time. There are various options when it comes to downsizing your residence.

Downsizing using an estate agent

Many people opt to use high street estate agents to sell their current home and secure their next one to get the best price. However, this option is not always the most convenient.

Trying to arrange an open market sale and purchase involving multiple buyers and sellers in a property chain can be a drawn-out and uncertain process.

Why do Properties Go to Auction
The unpredictable nature of the open market might also make it difficult to tie up the purchase of your next property with the completion of any auction sale.

Selling a property at auction to downsize

Selling a house at auction to downsize can offer a quicker sale, requiring completion within 28 days of the auction. It’s important to keep in mind that there is no guarantee that your property will find a buyer at auction. If it does, it’s likely to be at a lower price than the market value.

The unpredictable nature of the open market might also make it difficult to tie up the purchase of your next property with the completion of any auction sale.

Using part-exchange to downsize

If you want to be quick and convenient, you should consider using a house part exchange service. This is an option offered by newly built property developers and some retirement property companies.  We also offer to buy your home for cash.

Similar to selling at auction, you may need to accept a lower value for your property. This may only be available for certain properties in a development, so your choices may be limited.

Downsizing using a professional home buyer

If you’re interested in property part-exchange, but don’t want to buy a new build or a retirement property, you should consider using a professional home-buying company. These companies offer a similar part-exchange service as new-build developers and will purchase your property with their funds.

This provides a quick sale, which is especially useful if you’ve found the next property you’d like to move to but can’t seem to sell your current house.

It’s important to note that you’ll get less than market value for your property, but in return, you get a hassle-free and guaranteed sale on a date of your choosing.

How to downsize your home quickly
Releasing equity through remortgaging or taking out an equity release product could give you access to a lump sum.

How to downsize your home quickly?

If you need to downsize quickly, due to health or financial reasons, a property part-exchange service or professional home buyer can give you the quickest solution. With these options, you won’t have to worry about the buyer changing their mind – you have a guaranteed purchase.

Do I need to downsize my house?

Whether or not you need to downsize will depend on your situation. If your primary reason for downsizing is financial, there may be other options available. Releasing equity through remortgaging or taking out an equity release product could give you access to a lump sum.

Will I need to downsize after divorce?

Downsizing as a result of a relationship breakdown or divorce may be avoidable if you can afford to buy out your former partner’s share of the property. If you have children under the age of 18, you may also be allowed to remain in the property, depending on your circumstances.

Is it worth downsizing a house if I don’t have much equity? Downsizing may still be the right move for you, even if you don’t have much equity if you want to reduce your monthly expenses or are having difficulty keeping up with property maintenance.

It’s important to get independent financial advice to make sure you make the right decision for your situation.

Alternatives to downsizing
Equity release is an option for getting money from the value of your home without having to move out or pay it back in your lifetime.

Alternatives to downsizing

You may not wish to move and downsize your property to gain equity, so what other options might be available?

  • Equity release is an option for getting money from the value of your home without having to move out or pay it back in your lifetime. We’ve written a guide that explains the differences between a lifetime mortgage and a home reversion scheme.
  • Retirement interest-only mortgage. This lets you take out a home loan to gain equity. You’ll need to pay the interest on the loan every month, but the capital doesn’t need to be paid back until you die or go into long-term care. Following this, your home will be sold, and the lender will be repaid from the proceeds.

If you’re considering getting a retirement mortgage, it’s wise to speak to a mortgage broker; they know which lenders provide these products.

Downsizing house checklist

If you’re thinking about downsizing, these tips could help you get started:

  1. Make a list of the pros and cons of downsizing to help you decide if it’s the right move.
  2. To help you with your downsizing, try buying a new notebook and use it to keep all your lists and information in one place.
  3. Downsizing your home means downsizing your possessions, so create a furniture inventory and highlight the items you want to keep.
  4. You should start decluttering as soon as you decide to downsize; it always takes longer than you think, and it’s hard to find the right property if you don’t know how much space you need.
  5. If you have grown-up children who already have their own homes, don’t use your property as a storage facility. Pass on any childhood mementoes or possessions still in your home and let them decide what to do with them.
  6. It’s time to shred! Many of us keep old household documents and paperwork for too long, and it takes up a lot of space. Some documents are important and should be kept, but having a drawer full of old bills is unnecessary. Always shred old documents instead of throwing them away to prevent identity theft.

Get no obligation Free Offer

If you need the certainty of a quick sale, this is where we can help.

We’ll make you a cash offer and complete the sale in 10 days – or at a timescale that works for you.

We’ll also pay £1,500 towards your legal fees.

auction hammer

Property Saviour Price Promise

  • The price we’ll offer is the price that you will receive with no hidden deductions.
  • Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
  • These valuations or surveys result in delays and price reductions later on.
  • We are cash buyers.  There are no surveys.
  • We always provide proof of funds with every formal offer issued.
calculator

We'll Pay £1,500 Towards Your Legal Fees

  • No long exclusivity agreement to sign because we are the buyers.
  • You are welcome to use your own solicitor. 
  • If you don’t have one, we can ask our solicitors for recommendations.
  • We share our solicitor’s details and issue a Memorandum of Sale. 
Sell

Sell With Certainty & Speed

  • Our approach is transparent and ethical, which is why sellers trust us.
  • 100% Discretion guaranteed. 
  • If you have another buyer, you can put us in a contracts race to see who completes first.
  • Complete in 10 days or at a timescale that works for you.  You are in control.

Sell with certainty & speed

Share This Article:

Related Articles

Skip to content