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Moving home in retirement doesn’t have to mean settling for a smaller property. There are many reasons why it could make sense to ‘upsize’ and go after a dream home, or welcome family more often.
Upsizing generally means moving to a larger property, one with more bedrooms or buying something more expensive.
“Our agency has seen a noticeable trend of individuals over 50 seeking larger homes as they approach retirement,” explains Liam Gretton, Founder of Liam Gretton Estate Agents.
“For those who have experienced the frustration of tirelessly searching for their dream home without success, upsizing in retirement can represent a fresh start.
“Every individual has unique preferences and requirements when it comes to their ideal home, especially during retirement as it is usually the last move.
“Often many of our clients who are looking to upsize in retirement are seeking homes with specific features tailored to their lifestyle aspirations.”
Retired couple Surinder and Carnell Gill chose to upsize to a five-bedroom home on the Edwalton Fields development, near Nottingham, so their three grandchildren could have a room each when they came to stay.
“We were in a four-bedroom property where we had the main bedroom for us, one bedroom as a dressing room and another one as an office, which only left one bedroom free,” says Surinder.
“The children would have been happy to bunk down in sleeping bags on the floor, but we thought it would be lovely for us to be able to offer them a room each.
“We have worked hard throughout our lives and now we are retired we want to be able to enjoy life on our terms when we can. So, being able to give our wonderful grandchildren a bedroom each at our home was what we wanted to do.”
A new, larger home could offer open-plan living spaces to entertain friends, extra rooms to accommodate guests, or even a workshop in the garden to pursue your hobbies. Alternatively, it could offer you the space you need to run your own business from home.
Moving to a new location could allow you to enjoy a more rural lifestyle, enable you to take part in a better range of social activities or simply be closer to your family.
“In the current climate, we're seeing more cases of upsizing to accommodate multi-generational living too,” adds George Abouzolof, Senior Mortgage Broker at Clifton Private Finance.
“Families can combine their borrowing power and upsize together into a bigger home, often with an annexe, that suits the whole family and makes financial and practical sense.”
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While you might be excited about the prospect of upsizing, it’s important to consider the downsides too, which, while manageable now, could become more problematic as you get older.
Jonathan Rolande, Property Expert and Director of property company House Buy Fast, warns there are often trade-offs if you’re thinking of moving to a more rural area, for example:
“Remote areas, [which] are often cheaper, won’t be well served by buses, shops, banks etc but may make up for it with a sense of community.
“Some idyllic locations are [also] desolate in winter and on weekdays thanks to large numbers being used as holiday homes.”
Accessibility will, eventually, also need to be a consideration for many, yet figures from home adaptations solutions provider EA Mobility show that 43% of over-55s have never thought about the accessibility of their home.
“As we age, our mobility needs often change, and it's crucial to plan ahead to ensure our homes can accommodate these evolving requirements,” says Kian Carvell, Specialist Assessor at EA Mobility.
“Wide doorways, level thresholds, accessible bathrooms and smart gadgets can greatly enhance accessibility and make it easier to navigate the home.
“It's also worth thinking about the potential for future adaptations, such as installing a stairlift, grab bars, or converting a ground-floor room into a bedroom or bathroom.”
Larger homes can also be more expensive to run and maintain, and you might have a bigger garden to tend to. While this can also be a boon to start, it’s worth having a plan for upkeep if you find yourself less mobile in the future.
Council tax and other household bills, such as gas and electricity, could go up too.
That said, moving to a bigger home doesn't always mean paying more for your bills, particularly if you’re buying a new-build property, as these are generally more energy-efficient.
Becky Lane, CEO of Furbnow, which specialises in improving the energy efficiency of your home, says: “Insulation has been integrated into homes since the 1960s and standards for insulation have improved significantly over time.
"Make sure to compare the Energy Performance Certificate between your current and prospective home to see what the potential difference would be.”
While it was found that half of UK homes only meet insulation standards set from the 1970s – showing a lot of houses haven’t upgraded their insulation for decades – there has been a big uplift in energy efficiency thanks to new builds.
These modern homes are required to have more rigorous insulation standards and are therefore losing less heat – lowering your energy consumption (and bills) if you chose a recently-built property.
If you’re buying a more expensive property, there’s also the important matter of financing the move.
Richard Dana, Founder and CEO of mortgage specialist Tembo says: “Some customers use cash or pension drawdown whilst others will get a mortgage.
“There is a whole range of options here – with retirement interest-only [mortgages] the most popular. There is often a preference for capital repayment [where you eventually own the house outright] but for many, it makes the monthly repayments too high - so they opt for interest-only for the time being.”
He adds: “We've also seen an interesting trend recently where customers are looking for shorter-term financing solutions, such as short-term [2-5 years] mortgages.
“Rather than having to sell and then buy, [they] want to buy their new home before they have sold their old home for a 'smoother transaction'.
“We've also seen quite a few situations where the customers have an investment or bond that will be maturing at a future date, so they are just using a mortgage for the time being, with the view that this isn't a long-term agreement.”
Although it can be more challenging to secure a mortgage as you get older, it’s still possible. To increase your chances of success, you’ll need to show you can comfortably meet the monthly repayments by providing details of your pension income, savings and/or investments.
“If you need finance to upsize in retirement, make sure you have a sustainable repayment plan for it. Will you need to keep working into your 70s and 80s to repay your mortgage, or will your pension income tide you over?" Abouzolof says.
“Your mortgage lender will scrutinise your affordability, but make sure you are comfortable with the terms too, and be sure to discuss your options with a mortgage broker.”
If you’re taking out a new mortgage, remember that your home may be at risk if you don’t keep up your repayments.
You’ll also need to budget for the usual moving costs such as legal fees, valuation fees, stamp duty and estate agents too.
If you’re worried about the effect such a move may have on your longer-term finances, also consider speaking to a financial planner to help you understand the impacts it may have.
As well as deciding whether you can actually gather enough money to afford the move, there are a host of other things to consider.
Gretton adds: “Factors include the potential impact of care home fees on financial plans, estate planning and considerations for inheritance, and the assistance or support for children who may be struggling financially.
“These aspects play significant roles in the decision-making process for individuals looking to upsize in retirement.”
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