"Why Rising Moving Costs Are Encouraging Over-55s to Stay Put and Unlock Their Home's Potential"

The cost of moving homes in the UK has seen a dramatic increase over the past decade, doubling to an average of £14,500. These rising expenses, which include estate agent fees, stamp duty, legal costs, and removal charges, have made relocating financially challenging for many. For homeowners aged 55 and over, this financial hurdle is leading to a shift in preference, with more people choosing to stay in their cherished homes and explore alternative ways to access funds, such as equity release.

The Growing Cost of Moving

A recent Daily Mail article sheds light on how moving expenses have soared, attributing the rise to several key factors:

- **Estate Agent Fees**: These fees, averaging 1.42% of the sale price, have climbed by 5% to £4,686, largely due to increasing property values.
- **Stamp Duty**: With property prices on the rise, stamp duty has become a significant expense, adding thousands to the cost of buying a new home.
- **Legal Fees**: Conveyancing costs have risen 2%, averaging £2,038, further increasing the financial burden.
- **Removal Costs**: Professional moving services for shorter distances now cost 8% more, averaging £699.

These escalating costs make moving a daunting prospect, particularly for those nearing or already in retirement.

Equity Release with MY LATER LIFE : An Alternative to Moving

In response to these challenges, many over-55 homeowners are turning to equity release. This financial solution allows individuals to access a portion of their property’s value as a tax-free lump sum or regular income without needing to sell or move out.

Key Advantages of Equity Release and a Later life mortgage

- **Stay in Your Current Home**: Equity release enables you to remain in your familiar surroundings, avoiding the stress of relocating.
- **Unlock Financial Freedom**: The funds can be used for home improvements, repaying debts, or supplementing your retirement income.
- **No Monthly Payments**: Typically, repayment isn’t required until the home is sold, either after you pass away or move into long-term care.

Points to Consider

While equity release can be an excellent solution, it’s essential to weigh the following factors:

- **Inheritance Impact**: Accessing equity reduces the overall value of your estate, which could affect what’s passed on to heirs.
- **Interest Accrual**: Interest compounds over time, potentially increasing the amount owed.
- **Eligibility Requirements**: Specific criteria must be met, and consulting a qualified equity release adviser is crucial to make the right decision.

"With moving costs at an all-time high, staying in your cherished home doesn’t mean staying stuck—equity release offers a way to unlock the value of your property and enjoy financial freedom."

As the costs of moving continue to rise, more over-55s are exploring ways to remain in their much-loved homes. Equity release offers a practical solution, providing financial flexibility without the need for relocation. However, it’s vital to seek expert advice to fully understand the implications and ensure it aligns with your financial plans.

At MY LATER LIFE we are proud to specialise in tailored equity release solutions. Contact us today to learn how we can help you unlock the value of your home and enjoy the comfort of staying put.