An essential guide to downsizing – or rightsizing!

Empty nesters and downsizers often seek smaller homes that are more manageable and less costly to run. Moving to a smaller home
can be daunting and requires navigating the same legal and financial aspects as any relocation.

A great alternative to traditional homebuying is the new build market and they’re an especially attractive option for downsizers, particularly because you can take advantage of incentive schemes like part exchange and assisted move programmes.

Why consider downsizing?

Downsizers and empty nesters are often searching for the opposite of next-time buyers, since a big home can be overwhelming when you don’t have a full house.

While a second stepper or a next-time buyer may search for more space, a bigger garden, or an extra driveway, as a downsizer you likely want the opposite. Downsizing comes with an array of advantages, including:

• Reduced living costs
• A simpler lifestyle
• A more sustainable way of living

Though downsizers may not have access to a wide range of financial support programmes, you’re likely in a better position to move than anyone. If you haven’t already paid off your mortgage completely, you’re likely very close, which means you have a substantial amount of equity you can take advantage of in your pursuit for a smaller space. It’s entirely possible you could even end up with more in your pocket, especially if you look for homes that cost less than what you’re selling for.

In addition, new build homes are a great option for those looking to downsize as they come with an array of their own benefits, making them the perfect choice for those looking to downsize.

Why new builds are a good option

Aside from the incentive schemes offered by developers, new build homes tend to be more energy efficient and offer a comfortable and practical living space. They also typically come with a developer supplied warranty, ensuring your peace of mind in the longevity of your home. Should any issues arise, you’ll be covered.

You’ll likely also have the opportunity to choose your own features in the home if you buy off-plan benefits. What’s included in your finishes will depend on the developer but it’s worth having a conversation with them if personalisation is important to you.

Besides these benefits, new build homes often come with a variety of incentives to make the homebuying process easier.

Part exchange

Part exchange is a popular option for homemovers who don’t want the hassle of selling their current home. Part exchange is a widely favoured alternative for those who’d prefer not to face the challenges associated with selling their current homes, namely having to wait for the buying chain to move along before you can take any next steps.

Essentially, you swap your current property for a new one, with the developer handling the sale of your existing home. This method eradicates the pressure and unpredictability of waiting for your house to sell, and allows you to move into your new house in a swift and stress-free manner.

Assisted moves and cash contributions

An assisted move is a service provided by house builders and developers to help remove the stress associated with the buying and selling of their properties. It can also provide financial help, such as a cash deposit, a contribution to legal fees, or even a reduction in cost of the new home. It’s important to carefully check the terms and conditions of the service before applying as it may vary depending on the provider.

We always recommend seeking advice from a mortgage adviser or conveyancer to fully understand the costs and implications associated with moving.

Expert guidance on buying a new home

The process of selling and buying a home can be overwhelming, but with proper guidance it can also be a satisfying experience. Buyers looking to downsize are often in a favourable position to buy as you likely have more equity to play with than a second-time buyer.

Get in touch with a mortgage adviser if you’re considering downsizing as they’ll be able to offer you expert advice and guidance about the solutions that will most suit your current circumstances.

This information was contributed to by our friends at Mortgage Advice Bureau (MAB). MAB is one of the UK’s leading consumer  intermediary brands, winning more than 200 awards for the quality of its advice and service. MAB has more than 2,000 advisers offering expert mortgage, protection and general insurance advice on a local, regional, and national level to consumers, both face to face and over the phone.