Should I Downsize My House in Central London?

Every year, homeowners make the move to a smaller house or apartment, but there’s no fixed roadmap for downsizing your home.

It could be that your spacious Paddington home feels less manageable these days, and it’s time to downsize to a smaller apartment. A move to historic Bromley and Chislehurst could offer the affordability you seek, along with local amenities and fast access to town and country.

After all, a third of central London residents have considered downsizing or relocating to reduce their outgoings, as found by Halifax – the highest proportion in the UK.

Take a few minutes to read on, as we share tips for downsizing your house and explore your options.

What does it mean to downsize your house?

Downsizing means moving to a smaller home. Many people choose to downsize after retirement or as empty nesters, want to save money on bills or access cash tied up in the property, or use relocation as a chance to make a simpler start. Take a look at how long it could take to sell your home if you are planning to downsize, including whether or not you are selling a leasehold property.

Should I downsize my house or wait?

Consider the reasons why you’re making the decision to downsize to a smaller property. Perhaps you feel forced to downsize your house to pay off debt. If you plan of paying off your mortgage by downsizing, then it’s worth checking if there’s an early repayment fee. It could make sense to wait a short time.

Downsizing your house for retirement is a common move many people make, for both financial and practical reasons. For example, releasing equity to do more of the things you enjoy, now that you have the time. It may also be a future-proof move – after all, none of us are getting younger and it can be helpful to move to a house that will remain manageable for decades to come.

You may also monitor the property market to sell at the right moment, or time of year. Whatever influences your final decision, it’s a good idea to seek specialist downsizing advice.

Downsizing house: the pros & cons

Deciding to downsize to a smaller house could solve many problems, but there are potential issues to be aware of. They may sway your decision – or it could be that, by pre-empting certain problems, you can find a solution. Here are some of the pros and cons of downsizing to consider:

Advantages of downsizing my house

• Opportunity to move closer to family
• Simplifying your life
• Reduce energy bills and other costs of running a larger home
• Less space to maintain and clean
• Perfect opportunity to declutter and simplify

Disdvantages of downsizing my house

• Cost of downsizing such as movers’ fees, solicitors’ fees and estate agent fees
• SDLT potentially due on your new house
• Fewer spare bedrooms for visitors
• Less storage space
• Family homes hold memories

Downsizing housing options

There’s no single approach to downsizing – though it’s often a good idea to think long term. Downsizing from a house to an apartment is a popular strategy. In central London, you can find new build apartment buildings and smart conversions, allowing you to live in a property that’s easier to maintain. Downsizing from a house to a flat is not the only option though, you may consider buying a smaller house.

If you have reached a certain age, perhaps you’re considering a retirement property. Though it’s worth noting that there can be hidden costs, so research carefully before signing.

To work out what type of property will meet your requirements, and the options that are open to you, the downsizing process often starts by establishing your budget and preferred location.

• Evaluate your budget
• Speak to a mortgage advisor if applicable
• Settle on your priorities
• Consider your ideal location
• Start decluttering
• Find a good local estate agent to help you sell
• Start searching for properties

What is part exchange when downsizing a house?

Many developers offer part exchange schemes or downsizing schemes, where your property is essentially traded towards the value of a new build property. However, this can limit your options, and you aren’t likely to achieve your property’s full market value.

Do I pay tax if I downsize my house?

Most central London homes sell for a house price that’s over the minimum stamp duty (SDLT) threshold of £125,000, meaning you will have to pay stamp duty. The current rates are on gov.uk. You won’t usually pay capital gains tax when downsizing from a house that’s your main residence. However, CGT may apply if you inherited the property. A tax advisor can help you to clarify your situation.

Thinking about downsizing your home in Pimlico, Marylebone, Maida Vale, or Chislehurst? Intra-Capital Estates can help you to sell your central London property. Contact us to talk about your downsizing plans.