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Thinking Of Downsizing? Here’s What You Need To Consider

MORTGAGES | 04.10.2022

Making the decision to downsize may be on the cards for you, whether you’re a couple whose children have flown the nest, you and your partner have decided to part ways, or maybe you’ve had to tighten the purse strings and are looking to free up some money. 

Downsizing can be a big lifestyle change, and there are a number of things you should consider before you make any final decisions.

What are the benefits of downsizing?

Smaller Mortgage 

If you currently have a mortgage, the mortgage for a smaller home is likely to be less than you are currently paying, freeing up funds for you to spend elsewhere.    

Less Maintenance

A smaller home would generally need less maintenance than a bigger home, as there are fewer things that need upkeep, or that could be damaged. Moving into a smaller home can significantly reduce the maintenance costs or the expense of materials to maintain the home yourself.   

Cheaper energy bills 

Living in a smaller home often means smaller energy consumption. With the current energy crisis, having less space to heat and provide electricity for will aid in keeping energy bills to a minimum.   

De-clutter belongings 

When moving to a new, smaller home, you will undoubtedly have to donate or sell some of your belongings before doing so. You could donate to local charities, or sell high-value items online.   

Drawbacks of downsizing

Moving expenses 

The cost of hiring movers can be costly, along with needing new furniture, decor or appliances to make your new house a home.   

Costs of selling/buying a home 

When selling a home, it comes with fees such as your estate agent’s commission, conveyancing fees and also taxes. When buying your new home, there will also be fees involved including surveys and conveyancing costs that you will need to pay, so make sure you include these when budgeting for your move. When selling your home, you will also need a valid Energy Performance Certificate (EPC) for the property. This is a legal requirement in the UK and costs between £35 - £120. If you’re not sure if your home has a valid EPC you can check online here. 

Less room 

This sounds like an obvious one, but downsizing means completely changing your current lifestyle, and adapting to one with less space. Having smaller living areas, garden area and less storage can be difficult to deal with if you tend to hold family parties, or if you often have guests/family stay at your home. So make sure you fully evaluate how you use your current space before going ahead.   It is much easier to plan a downsizing move when you are aware of your financial situation. That’s why speaking to a mortgage broker such as our team here at TaylorMade can help you understand what lending options are available based on your circumstances. - Get in touch today!
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