As we approach retirement our priorities naturally change, and what might have been the perfect home to raise a family in, may not necessarily be so perfect for us in later life.
It seems many people looking to move house these days are working towards a similar end goal. Research from the property website Rightmove found that 40 per cent of homeowners who are moving are selling their homes to downsize*.
Once the children have fled the nest a big family home can feel empty; and as we adjust to living on a retirement income, the upkeep of a bigger property can be very costly, not to mention time-consuming.
Of course, it can be expensive to move house and this should be weighed up as part of the decision to move. However, once the initial expense of moving house has been considered, a vast amount of money can be saved over time by living in a smaller property or moving to a less expensive area.
Energy bills can be significantly cheaper in a smaller home; you may drop to a cheaper council tax band by moving, and, depending on the property you choose, you can save in travel costs and maintenance bills too.
Can I move house with an equity release plan?
If you already have an equity release plan then you will be pleased to hear that many providers do allow you to move house and ‘port’ your plan with you.
When you arrange a plan that is approved by the Equity Release Council (which are the only plans that we recommend at Bower) then one of the guarantees given is that it can be transferred to your new home without financial penalty, providing you move to a suitable property (the value and construction of the property are key factors in this).
If you are planning to purchase a less expensive property than your current home, then you may have to pay back part of the outstanding loan, provided you transfer the mortgage to the new property.
Remember, if you already have an equity release plan but arranged it more than 5 years ago then you may be eligible for a better deal, so make sure you call our specialist rebroke team today!
Using equity release to assist with a purchase
Looking to move up the ladder in later life? If you do not already have an equity release plan and you are wanting to move to a more expensive home, perhaps to enjoy more living space or to live in a more expensive area, then you may be able to use equity release to assist with the purchase.
Our highly experienced advisers could help you to unlock a percentage of the home you are purchasing to help you raise the additional cash required to complete the sale.
You can also use equity release to purchase a holiday home abroad or a second home – a country retreat, perhaps – providing your existing property remains your main place of residence.
If any of these options are of interest to you then your local Bower specialist will be delighted to explain everything to you during your free, no-obligation initial consultation.
Enjoy our award-winning service today
If you are considering equity release, it is vital you seek advice from an independent specialist like Bower, who will be able to search the entire market of plans to find you the right plan for your needs.
During your free, initial, no-obligation home consultation, we will take the time to explain all the advantages and disadvantages of an equity release plan, including how the money you unlock will reduce the amount of inheritance you leave and may affect your entitlement to some state benefits.
Speak to us today to arrange your free, no-obligation initial consultation on [tel].
*ThisIsMoney.co.uk May 2012