Selling Your House Fast to Downsize: Everything You Need to Know

As we get older, we can find our homes feel too big. And when kids grow up and leave, a once bustling family house might become empty and quiet. Some people love the new-found space, but others prefer to free up money and downsize into a home that’s easier to maintain and heat.

This blog post explores everything about downsizing, explains the pros and cons of making such a move, and provides some helpful advice for when the time comes.

 

What does ‘downsizing’ mean?

Downsizing means selling your existing home and buying something smaller, and often cheaper. Although anybody can downsize, it’s usually middle-aged and older people who do it when their children grow up and move out. 

 

 

Why sell a house to downsize?

There are several reasons why somebody might want to sell and downsize. 

• Free up equity. Selling your home and buying a smaller, cheaper one will free up cash that can be spent on retirement or partial retirement, paying off a mortgage or enjoying life.
• Reduce costs, maintenance and cleaning. Large homes and gardens need more maintenance, take longer to clean and cost more to heat. If you have plenty of unused space or perhaps can’t physically manage anymore, downsizing can reduce the financial and physical burden.
• Move location. Whether you want to move closer to family or perhaps swap the city for the suburbs, downsizing can give you the funds to do so. If you’ve stopped driving, access to public transport can be very important.
• Mobility and access. If you or a family member has physical limitations, downsizing from a house to a bungalow, for example, can make living much easier.
• The next chapter. Family homes are full of memories. Whether the kids have flown the nest or maybe you’ve lost your partner, starting a new chapter can be beneficial.
• Capitalising on the market. If your home is in a prime location with high house prices, downsizing can help you get the best return for your future.

Selling your house fast to downsize – Drawbacks of downsizing?

Downsizing is not always easy. Some people downsize out of financial necessity, while others may have emotional reasons for doing so. Either way, some of the downsides of downsizing include:

• Letting go. It can be tough to leave a family home that’s full of memories. Packing up belongings and saying goodbye is never easy.
  
• Organising belongings. We all accumulate stuff. Some of it has plenty of financial value, some we’re emotionally attached to, and some may be just junk. Downsizing often involves organising and getting rid of belongings, which can be emotionally and physically draining.
• Moving costs and admin. Buying and selling property is famously stressful and expensive. Even if the benefits of downsizing are worth it, it’s a big life event – and that’s not even to mention finding your new home. However, if you’re looking to sell your home quickly and stress-free, contact Zapperty today for a free cash quote.
  
• Less visitor space. While reducing space is the point of downsizing, it means having less room for visitors. If you’re a social butterfly, this might take some adjusting to.

 

Do I pay tax if I downsize my house?

There may be tax considerations to downsizing, such as Stamp Duty Land Tax (SDLT) or Capital Gains Tax. 

If you plan to move into a home valued above £250,000, you’ll be liable to pay Stamp Duty. However, Capital Gains Tax won’t apply as long as you’ve met the following criteria:

• It’s been your main residence for the entire time you’ve owned it
• It’s never been rented out or used for a business
• The land is not larger than 5,000m² 

You can find out more about Capital Gains Tax with our helpful guide.

If you’re moving into a new-build, some developers may offer a part-exchange service when you downsize. This can be a great option to remove some of the stress of selling, but they often have eligibility criteria.

 

How to downsize your home

Downsizing your home involves several steps. First, you need to weigh up the financial implications of the move and properly plan to decide whether it is feasible. For example, how much money will you free up from your current home? What will you need to cover your new lifestyle? Will you have enough cash to cover the cost of moving? How do you plan to sell your home and is there a deadline?

Once you’ve worked out the financial side of things, you’ll also need to consider your new lifestyle and plans. Do you plan to keep driving or will you need easy access to public transport and other facilities? Do you expect friends and family to visit often? Do you want a house without stairs or perhaps only a small garden? Once you understand your needs you’ll be able to start looking for properties in your chosen area.

When you’ve found a place the process of moving begins, and it usually starts with decluttering. This can be a draining process, so we’ve compiled some helpful downsizing decluttering tips:

• Be ruthless. Sort anything of value that you won’t need into sell, donate, recycle or bin piles. We often keep things ‘just in case’ but they often just clutter our homes and take up valuable space.
• Give pre-inheritance gifts. If you have things you’re planning to leave your children or grandchildren when you pass on, why not give them to them early to free up space? However, make sure you don’t fall foul of Inheritance Tax guidelines.
• Smarten up your home. If you can, undertake small tasks that add value to your home. However, some things are not worth your time, so choose accordingly.
• Plan ahead. Consider where in your new home things will go to make sure you don’t bring too much with you before finding you’ve got nowhere to put it.

 

Downsizing can be a fantastic way to achieve financial freedom and start a new chapter in your life. However, it needs careful consideration before you take the plunge to make sure you don’t regret it. By planning properly for the future, you can experience all the benefits without any of the drawbacks. 

If you’re looking to downsize quickly and hassle-free, we’ll make a cash offer on any home within 7 days. Zapperty can help you avoid expensive fees and unreliable buyers, so contact us today to find out more.