Guide to Downsizing Your House in the East Midlands

If you are considering downsizing your house, the East Midlands can offer smaller properties that fit the bill.

There’s no need to compromise on location either, with local market towns attracting attention for their pace of life and local amenities. The Express named Oadby in Leicestershire as one the best places to downsize in the East Midlands for retirees. Meanwhile Market Harborough, and Oakham and Uppingham in Rutland, have previously made The Sunday Times’ list of Britain’s best places to live.

We can help you find suitable properties, but working out if you should downsize your house is a very personal decision. Read our guide for pros, cons and tips on how to downsize your East Midlands house.

What is downsizing?

Downsizing means moving to a smaller property, whether you are moving on retirement or another stage of life. It could be a move to a smaller house, a flat or a retirement complex.

Why downsize my house in the East Midlands?

Downsizing is common following a change in health or mobility, to pay off debt or lower your monthly bills. When downsizing on retirement, you might move closer to friends and family, or prioritise a home with lower maintenance requirements.

Downsizing house: pros & cons

While downsizing your house can be a good idea for many movers, you should always take a balanced view. Depending on your circumstances, these are some of the pros and cons to consider:

Pros of Downsizing House

• An opportunity to move to an area that’s better suited to your current lifestyle.
• Choose a smaller house with the future in mind, such as a single-storey property.
• Downsize to a smaller property with lower maintenance demands.
• Release money tied up in your home to enjoy now.
• You could potentially pay off your mortgage.
• Smaller houses and apartments generally have lower running costs.

Cons of Downsizing House

• You’ll pay legal fees, estate agent fees and stamp duty, reducing the money freed up.
• Factor in the costs of moving your possessions or storage if essential.
• Moving to a smaller property often means going without extra space, like guest rooms for friends and family.
• It can be emotionally difficult to leave your existing home.
• Clearing out and reducing your belongings can similarly be hard to do.
• There can be early repayment fees attached to mortgages.

Downsizing Pros and Cons

Is downsizing your house worth it in the East Midlands?

Many people find downsizing is worth it, but it depends on your own circumstances and house value. Property portal Rightmove estimates that downsizers in the East Midlands could see an average cash return of £359,638 by moving from a 5-bed to a 3-bed property.

Alternatives to downsizing your home, such as a lifetime mortgage or equity release schemes, are available from age 55. These allow you to access funds without moving, for example, for long-term care costs – but there can be unexpected implications. Always speak to a financial advisor for tailored advice.

How does downsizing affect tax obligations?

You will pay stamp duty land tax (SDLT) when downsizing if your new home’s selling price exceeds the threshold. Capital Gains Tax on not usually due on selling your main home unless it was rented out or it’s a second home. Downsizing can also impact your inheritance tax obligations – another reason why seeking expert advice is crucial.

How to downsize your house – the key steps

1. Establish your budget

Find out the selling price of homes like yours by our available homes as well as Rightmove and Zoopla, and consider how much capital you want to free up.

2. Research locations

Where can you find smaller homes that fit your requirements, and what do these locations offer? Consider the distance to friends and family and local amenities like supermarkets and a GP surgery.

3. Stage your home

Decluttering can be hard, so allow enough time. You could ask family members to claim their own belongings or help you sort out the rest of the house.

4. Find an agent

Research local estate agents and ask about three estate agents for an estimated selling price. Consider their selling strategy and experience as well as their estimate.

5. Engage a conveyancer

A conveyancer or conveyancing lawyer will handle the legal aspects of selling your house and buying a smaller home.

6. Buy your new house

Once you have accepted an offer on your house, and viewed and placed an offer on your new, smaller home, get ready to move.

Whether you already live in Leicestershire or Rutland and want guidance on downsizing your house locally, or are moving to Lincolnshire or Northamptonshire and need help with finding the right location, contact King West. We are on hand to help you.