Downsizing in my retirement

I downsized 5 years ago from a large bungalow that cost a fortune to heat to a 2 bedroomed semi. It was the best thing I ever did. I extended the kitchen adding a utility room and downstairs loo and had plenty of money to decorate and improve it to my liking. It is now virtually maintenance free, my neighbours are lovely and I am just around the corner from my daughter and grandchildren. I would never rent as I like the security of owning my home.

Rose30 , thanks for explanation x

Susysue

4allweknow, how does the equity release work? I have always wondered x

It's like a mortgage so there is a charge against your property. However the interest rolls up with the loan and is of course compounded. A good adviser can help you to work out how much you need, if necessary, based on your age. It is repaid to the loan company upon sale but could be transferred to another property. Interest rates are low at the moment and can be fixed for the duration of the loan.

Living in london you would have enough money to buy brand new small house outside of London. I would not wish to rent after being a home owner all my life.

PJN1952
It’s not always the case with care homes, though. My mother was in a very good dementia-only care home for several years. She was self funded, and I would guess that probably half the residents were not, but all the rooms were the same - a good size, light and airy, with en-suite bathrooms.
However it was purpose-built for dementia, and was run by Abbeyfield.

Might add that at a more expensive home we looked at for her, in a converted hotel, the room they proposed to offer her, as a self-funder, was small and poky, evidently untouched from the original hotel room, and located down a maze of narrow corridors meaning she’d endlessly have been lost. It was quite unsuitable.
Needless to say that home was quickly crossed off the list.

4allweknow, how does the equity release work? I have always wondered x

There is the option of releasing equity in your property. You could have enough for repairs and your holidays without moving. I am only raising this as somethings you could consider, albeit with good legal advice.

I would never rent, you have no security. A friend of mine who rented a property for years was suddenly given notice as the owner who worked abroad lost his job and wanted his house back. She moved and within 4 months of being in the new property the owner died and the family wanted the house as part of the inheritance and she had to move again. Such an upheavel in a short space of time.

My father paid a very reasonable price for a new McCarthy and Stone flat in a convenient area. It is smart and well maintained, and the manager is excellent and keeps a good eye on the residents. They have company and activities organised. The price is not extortionate (£250 a month for maintenance) and for that the residents get hassle free living in a very pleasant flat, with a lovely garden. I have just sold it with little problem, other than of course, elderly people are not moving at the moment due to covid. To my mind it was worth it for the peace of mind of knowing that my father was safe and comfortable, with company.

We sold our family home in 2007 and moved to a rental on the seafront in Folkestone. We have moved 3 times to smaller properties. The money from our house sale we invested and although not so much income from it now We use our income for a 3 month rental in the winter in Spain and another 6 weeks in Sept Oct. Pre covid and Brexit! We have never regretted renting and maybe we will look at retirement rental when we get older but we live in a lovely modern flat with views of France and no maintenance worries.

I have lived in my bungalow alone for 32 years after coming back from twelve year travelling abroad when it was let. I did all my renovations and decorating until I was 82. I did not change the kitchen and has the same units as when it was built. Because my mother went to a new build after my father died. But as she got older and shrunken was unable to use the wall cabinets. All this modern obsession with new kitchens doesn’t make one a better cook. I would sooner spend my money on holidays. Which I did until health prevented me.
If I had moved I would have lost all my friendly neighbours and would miss the garden which I have developed over the years.
I have had two friends who went to live with sons in grannyannexes and regretted it. They ended up in care homes put there by their sons..
after spending a week in a care home for rehabilitation after an operation I have decided that as long as I can afford help that would be the last place I would go.
Finally it is said that after bereavement the next most stressful experience is moving house.

There’s me wondering how lowly a guesthouse or B&B would need to be for me to be able to afford it in my more senior years!

Not sure why you feel you would be isolated in the country. We moved from London last year to a large village in Kent and the people here are FAR more friendly. We have a station with half- hourly trains to town - probably not as convenient or cheap as you are used to, but it works for us. The last train back at night is long after theatres have closed. But I can understand that if you are not used to the country it could be a daunting move.

I moved into what appeared to be a lovely small development of flats. Only to discover that I had the neighbour from hell above me. When I went out into the enclosed communal garden another neighbour had 2 dogs that she would let out to 'do their business' but rarely clean up after them. I decided to move to a bungalow, best decision I made and luckily lovely neighbours too.

I think you are very brave deciding to do this but understand things change and different priorities happen. I have been renting for 10 months after a failed relationship forced me in to it, was his house. Renting is fine but beware of having a landlord that doesn't listen to you. Mine has only done the minimum of repairs and those that I have asked to be done, cooker hood doesn't work, bathroom ceiling and floor needing repair and bathroom tap loose, do not get done and its likely that they never will as its been a struggle getting basic repairs done as it doesn't appear maintenance featured highly when they lived here. I have chosen now to go to live with my daughter and her fiance after gifting them money as a deposit, I am hoping to build an annexe off their home. They are thrilled with me living with them as we get on great, lets hope that lasts. Best of luck with your decision.

My only caution about renting is that landlords can sell up and leave you needing to find other accommodation, with all the expense and worry that may accompany that. If you bear that in mind then renting from a good landlord can be a good option.

Katie59

An aunt of mine bought a new retirement apartment, McCarthy and Stone I think, secure, convenient, communal lounge, suited her well, service charges were high of course, also I did hear that resale value was not good.
I’m sure I would not want the hassle of having to maintain an old house in my later years.

The trouble with those places is that when you sell, you have to pay a seller's commission to the 'owners' of the site. My mother in law died and selling her property meant paying commission not only the estate agent but also 2% to Beechcroft (who had been most unhelpful). The annual maintenance was enormous too.

My friends mother was in a McCarthy and Stone when she died. They had a hell of a job selling it and had to pay Council Tax and Maintenance charges. I think about 3p was left, in the end.
What about some sort of conversion ? Split the house into two and rent the top floor? That way the Post doesn’t have to move.
Yes it will be hideously disruptive but every option is going to be the same.
We have recently moved from our beautiful period six bed home in its own grounds, to a cardboard modern box. Having neighbours is novel. However we were determined to move, before we got to the stage where someone moved us.

I sold my old house in France after my husband died, then my brother died in the UK so I sold his house too, and moved back and bought a retirement flat (for over 55's ..not a care home ...although sadly it resembles one as more and more older people needing carers are moving in (probably because it is cheapear than a care home !) I am not especially happy with it BUT the reason I bought it was, like you, I intended to do a lot of travelling (except, obviously ALL the planned trips were cancelled !) I bought by the sea on the outskirts of a big city with access to transport etc. First it was wonderful, big concert halls, theatres, cinemas, activities locally, voluntary work, a social club round the corner, another club on the seafront, walking, the beach, but of course in the last year it has been awful .......I chose a city because there are plenty of excellent University hospitals doctors, banks, shops (those sadly that are left !) restaurants, coffee shops, always something to do or just to sit and watch ....so yes, I would downsize BUT before I bought my flat outright (well, it is very expensive with charges from the Management company !!!! and ground rent (illegal now, I understand) I looked at rentin (Churchills, etc etc) but at over £1,000 plus a month, I asked what would happen in the money ran out ...........and the answer was 'YOu would be asked to find alternative accommodation !!!!!!!!!!!!!!!} in other words you would be thrown out onto the mercy of the local authority and we know what that would mean .....a carboard box on the streets.......if your money ran out !!!

I sold up in London, retired to France for nine years, then returned to live in Surrey in a retirement one bedroom flat.
The development is owned by a not for profit housing association. Unlike the apartments built by McCarthy and Stone, it has a separate, well designed kitchen with a window.
I love it here, five minutes from the railway station and High Street, in a quiet cul de sac, very well run and managed, service charge £196 pcm.
But for that I no longer have to mow lawns endlessly, nor worry about outside window cleaning or buildings insurance.
I feel very secure here too, as we have an entry phone.
The cost, at £95,000 is pretty incredible for this area, and I decided to extend the lease and add value to it as well.
My life is made easier than ever, I love the cosy warmth of my home in winter, and no-one bothers me.
It feels very private.
And as for culture, I was just reading at midnight about the concerts in The Royal Albert Hall, came across my absolute favourite The Armed Man: a Mass for Peace. It was the following afternoon, conducted by the composer to celebrate his birthday.
Public transport saw to it that I was able to make it on time after immediately securing a seat online.
Needless to say, it was absolutely superb. Carl Jenkins in his seventies, conducting the whole concert in addition to my favourite piece, what a delight!
And Surrey, with its woods and waterways, feels to me like the ideal combination of town and country, with London on my doorstep. I feel very blessed here.

My mil just moved out of her seven bedroom Victorian pile which she had lived in for over 50 years. I thought the move would kill her. She now lives in a new build in the suburbs with a view of fields and she LOVES it. She’s 88.

PJN1952

On care homes my dear late Mum was in a Manchester private care home for 3 years until she died in 2013. The owner told me that with half and half council/private paid residents the ones who paid (like my mum) were subsidising the council paid ones. The fun bits like magicians & music sessions were for all residents but it was the private payers who paid for all the stars. It doesn’t seem fair but it is how the system worked. So get your family to do their homework on the funding of any home you may be put in.

I think thats one way of looking at it....Every single care home i have ever visited, purpose built and all, had got good rooms and less good rooms....the less good ones are smaller, noisier, maybe further from the lift or stairs, the view isn't so good, no direct access to the garden and so on. These rooms don't command such big prices, and, as such, tend to be the ones used by social services as they will be within their funding limit. It can be the case that such rooms are within an agreement that says they they will always be avaialable for social services use. its these rooms that are never empty and therefore are the basis of the home's regular income..they are what keeps the home ticking over....so yes the "nice things" may be paid for out of the extra money charged for the nicer rooms, but without the council funded residents in the cheaper rooms, the home couldn't exist for anybody.

I wouldn't advise anyone to move at the moment. Yes the housing market is on fire. Having waited over a year to sell mine I find that I am going to upsize slightly simply to move to the country. Best and final offers are the order of the day and it is horrendous. After the last year I find I don't miss easy transport/Access to theatre, cinemas and restaurants and shopping. I reviewed what I have most enjoyed doing and what I have missed most and I am moving back to my favourite part of the country after 20 years.
The rental market is just as bad with people offering over the asking price and you have to be ready to view at a moment's notice when something decent comes up.
I have looked into equity release in order to fund furnishings and improvements. The interest rates are low and at our time of life it really makes little
difference if your capital is in income paying investments or in your property when you can borrow against it. It is very reassuring!

One of my friends who was widowed 3 years ago has recently sold her semi in Manchester and purchased a small but adequate Park Home in Yorkshire where one of her colleagues moved to about 10 years ago,she has spent some money making it modern but cosy ,is 10 minutes from Ripon ,so far she loves it,and has all the money from her house sale to enjoy travelling to escape our winters when she is able due to the pandemic,her children don't want or need any inheritance they just want her to enjoy her life which at 66 she fully intends to do.

We were forced to sell a flat and buy a house for two reasons.

The first were new neighbours who made our life hell.

The second that by selling a flat in Copenhagen and moving to a country town, we could live far more cheaply in our retirement and have more money to travel.

I would advise anyone thinking of renting to avoid a flat or a terrace house because you do not know your neighbours before you live in a place for a while.

If you are unfortunate as we were with new neighbours believing that they did not need to show any consideration at all, then you may well come to regret rented property.