Equity Release Option 1 Downsizing

We suggest there are five core options when considering equity release of capital from property.

In order of priority, we consider downsizing to a smaller property should be your first choice.  There are several pros and cons to downsizing that you should consider before deciding to proceed or indeed discounting downsizing.

Pros

• No advice fees, equity release application fees, property survey fees and equity release legal fees.
• No running up debt on equity release lifetime mortgage or loss of equity if selling a share of property under a home reversion scheme.
• Possibility of staying in the same area if you feel comfortable with local shops, local transport, doctors and medical care.
• Cheaper ongoing bills for utilities, insurance, and maintenance costs for a smaller property.
• May be better for you as you age with a smaller or even no garden or communal gardens if a flat/apartment.
• May be better for you as you age if there are no stairs if you downsize to a bungalow or ground floor apartment or apartment with lifts.
• The ability to ‘lock up and go’ on your travels if you buy a small property or apartment.

Cons

• There will still be legal fees for selling and buying, stamp duty and survey fees on any new home.
• Moving fees.
• Cost of any downsized property in the local area may be too expensive meaning equity capital released may not be enough.
• Don’t forget apartments have servicing/maintenance fees.

There may be many other factors that influence your decision to downsize or not.  If you considered all the options and downsizing is not for you, it is time to think about Option 2 Family Equity Release Option 2 Family Capital

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