If you are heading towards or over the age of 55 have you started your retirement planning? One thing you might consider is a house move. Let us provide some helpful advice and make an astonishing suggestion.
Selling a house
As we get older, many of us realise that we no longer need the large family home. Selling it on and moving into a smaller place on average releases around £80k for UK home owners (The Independent, August 2017). This provides some welcome income.
Of course, there are the usual transaction fees to take into account. It is important to factor in the costs for Estate Agents, Solicitors and Surveyors as well as Removals before you make a decision.
Downsizing and shared ownership?
If you have been in your current property for some time, it is likely that you will draw enough equity to move somewhere suitable. After all, you don’t want to settle for second best!
If you are disappointed by the homes for sale in your area, have you considered downsizing to shared ownership for over 55s? Don’t be put off the phrase ‘retirement home’ many are often newly built and offer great amenities.
What is Older Person’s Shared Ownership?
Shared ownership means that you are buying a share of between 25-75% of a property. The remaining share will be owned by a housing association. Each month you pay a combination of mortgage and affordable rent.
If you are over 55 and have a 75% stake in the property you do not need to pay rent. Instead, the housing association will their share of equity when the house is sold again.
Here’s what you need to know:
- Many retirement homes are new homes, purposefully built for the scheme
- Your household income must be less than £60,000 for you to be eligible
- You can purchase between 25%-75% of the property but never 100%
- If you own 75% you no will not need to pay any rent to the housing association
Affordable homes for sale
With backing by the government, there are many shared ownership homes available or with planned estates underway as we speak.