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One in five over 55s planning to downsize in the next five years

  • 29 April 2013

Just under one in five of the over 55′s plan to downsize in the next five years to raise extra funds according to research from a new property sales company Keymove.

The firm has conducted the research to accompany the launch of a new business which will help people seeking to downsize to manage the process. The firm already offers equity release schemes through Key Retirement Solutions.

The research shows that those who are planning to sell aim to raise an average of £78,000 from moving to less expensive homes, which the firm says amounts to around 78 billion pounds worth. It says 24% plan to give money to children to pay for house deposits and other spending. Around 23% are downsizing because of financial worries – 19% say the running costs of their home are too high while 1% cannot afford their mortgages. Three per cent have interest-only mortgages with no ability to repay the loan on maturity.

If it came to a sale, the research found that 78% of this age group are concerned or worried about the house buying process. The hassle of moving home is the biggest worry for 60% while 49% are concerned about the expense. A third (34%) is worried about delays in the house sale process while 27% are worried about negotiating their sale price.

The service includes help with negotiating the house sale and purchase price and charges a total 2.5% of house sale prices for the end-to-end service.

Dean Mirfin, Group Director at Key Retirement Solutions (www.keyrs.co.uk), says: “There are real fears about moving house and the problems involved which is not surprising considering many older people will not have moved for years. The risks of getting it wrong or losing money are real too as it is a decision they will literally have to live with.”

The top five concerns about moving home are outlined below:

CONCERNS ABOUT MOVING HOME PERCENTAGE WORRIED
Hassle of moving house 60%
Expense of moving house 49%
Delays to buying/selling house 34%
Negotiating house sale price 27%
Negotiating house purchase price 21%

 

 

Customers pay an initial £299 (incl VAT) fee which is deducted from the final price bill on completion of the house sale and purchase. In considering the real value of the service customers would pay £4,500 to source the same information and services themselves, plus all of the unwanted stress and hassle – including handling all of the sale and purchase negotiations, not including the risk of the sale or purchase falling through and having to start again.

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