Should I sell my house?
June 18th, 2023
There are a myriad of reasons why people decide to move and we’re going to run through just a few of them which may help you to decide if it’s the right decision for you.
Children arriving, or to get more space – more commonly known in estate agency as ‘upsizing’
When it comes to upsizing, if you’re struggling with space, you either have to extend, or sell your house.
But if you decide you need to sell your house, then you also need to take a few more things into account…
– What is the balance of your mortgage?
– What equity do you have in your house?
– Do you have any redemption penalties?
– What are you (and your partner) earning?
– What is the maximum mortgage you can get?
– What sort of house will that buy you, in the location that you would like to live?
If everything fits, then, in my opinion, you should sell your house. Typically, people want to be in their ‘forever’ home by the time they are aged 40-45. To achieve this, in our view, if you have the equity and you have the salary to get the mortgage, then upsize rather than extend.
Release equity or the house is too big for you, more commonly known in estate agency as ‘downsizing’
If you’re downsizing, it probably means the kids have grown up and you’re looking to release equity from the house to spend on yourself! And why not?!
The difficulty usually, is to find a property that you are prepared to downsize too, because when you have become used to a certain type of property with a certain amount of space both inside and out, it becomes difficult to find something that offers the equivalent. In fact, it is pretty much impossible! But that’s the trade off – a smaller house, with less space, in exchange for a few hundred thousand pounds in the bank so you can go travelling and live the life you have worked so hard for.
I do see it a lot where people who are thinking of downsizing, decide not too, because they can’t find anywhere to go because they don’t want to compromise, but in turn sacrifice all the dreams they had when they were 45 about travelling the world when they retire…but I get it, it’s not easy, especially when there is an emotional attachment to your ‘forever house.’
The key word above is ‘compromise’, and if you are prepared to compromise for a few hundred thousand quid in your pocket, then you should sell…
But you do also need to consider the following:
– What is your house worth?
– What do you want to be left with once you have moved?
– What sort of house can you afford with the amount you want to be left with?
– Will you be happy in a smaller house?
– What are you going to do with the money once you move – make a list – travel the world, save a bit, buy a Rolls Royce, treat the grandchildren.
Getting children into a new school or a job move, more commonly known in estate agency as a ‘change in circumstances’
A change in circumstances usually means you should sell your home. It’s usually a job move, or wanting to get children into a different school or because you’ve fallen in love with someone who’s in a different area to you. Or perhaps it’s moving to be nearer your grown up children & grandchildren or moving abroad for a different way of life. But inevitably, a change in circumstances like this, often means you have to sell your home.
In most instances, there is the potential to let your property. Again, you have to do a fair bit of homework on what your property is worth both from a sales point of view, and also how much rent you would get for it, then a financial advisor will have to do some number crunching to determine what someone will lend to you if you keep the house you’re in, and all that other magic stuff! Coupled with the mountains of legislation around letting – it is not a decision to be taken without thoroughly educating yourself first.
Still not sure? I’d be happy to explore all your options with you and come to a sensible decision that’s best for you.
Get in Touch
