Over-55s want to downsize - but worry about the expense of moving

The very latest research for the launch of its new business Keymove Property Services, which charges a total 2.5% of house sale prices for the end-to-end service, shows around one in five (18%) of over-55s plans to downsize in the next five years to raise money.

They aim to raise an average of £78,000 from moving to less expensive homes – the equivalent of around £78 billion – with around a quarter (24%) planning to give money to children to pay for house deposits and other spending. Around 23% are downsizing because of financial worries – 19% say running costs of their home are too high while 1% cannot afford their mortgages and 3% have interest-only mortgages with no ability to repay the loan on maturity.

However just 22% of over-55 homeowners are unconcerned about the house buying and selling process. This leaves 78% who are concerned or worried. The hassle of moving home is the biggest worry for 60% while 49% are concerned about the expense. A third (34%) is worried about delays in the house sale process while 27% are worried about negotiating their sale price.

Keymove’s research shows there is strong demand for the launch – 59% of those questioned say they would be interested in finding out about a service which can handle the buying and selling process. On a typical £200,000 property Keymove would charge £5,000 + VAT in total for its service.

The cost covers all legal and conveyancing fees; estate agency fees; the mandatory Energy Performance Certificate; an independent valuation survey; two further valuations from local estate agents recommended by Keymove based on those which have sold the most appropriate properties in that area; and a unique 17-page valuation survey highlighting property sales in the area to give comprehensive detail on the sale price range that should be adopted. Once a property is found a “property passport” is provided which provides invaluable information about local amenities: such as doctors and dentists, local transport, shopping and everything to help with finding the right property in the right location.

The service includes help with negotiating the house sale (27% worry) and purchase price (21% worry) – an extra 1% negotiated for example on the sale price of £200,000 house would add £2,000 to the money released for the customer at no extra charge.

Key Retirement has appointed Vic Pegna as Head of the new initiative. Vic has more than 20 years’ experience in estate agency financial services with Countrywide and Your Move.

Dean Mirfin, Group Director at Key Retirement Solutions, said:

“The launch of Keymove Property Services is the logical next step for the Key Retirement Solutions and builds on our expertise and experience in equity release and annuities and estate planning.

“We regularly advise customers not to proceed with equity release as their real preference is to look at downsizing as an alternative and Keymove Property Services offers comprehensive advice and help. There is huge demand for downsizing with nearly one in five or around a million people planning to do so in the next five years.

“But there are real fears about moving house and the problems involved which is not surprising considering many older people will not have moved for years. The risks of getting it wrong or losing money are real too as it is a decision they will literally have to live with.”