No heirs so I want to sell my home and enjoy the money!

[Aquanaut1]

I have no family or legal heirs and I am 55 years old. My health is ok but I do have health conditions to limit my life into old age. I have worked hard all my life and have seriously been thinking to sell up and enjoy my money while I can. This has been particularly in the forefront of my mind since one of my work colleagues had a brain hemorrhage last year and nearly died in her mid 40's. This was completely out of the blue with no warning.
I don't particularly like where I live either so would not be sad to see the house go. What would you do in my position?

If you have a sufficiently large lump sum, you can invest it to provide an income that will either never run out or at least last until you are very old.

So that will take care of the income and whatever money you have left will pay for the care home. If there is no money left, you get the care home for free, and it's only actually quite a small percentage of people who need significant amounts of care, so it's a bit daft to plan your income/lifestyle on saving as much as possible for a nicer care home in 40 years time when most people won't actually need it and the system could have changed a dozen times between now and then anyway.

This sounds like a good idea to me (assuming you’re in the position to do it). If you own a smaller home outright you can still look at equity release schemes later when you’re old enough.

No, don't do this.

There was a programme recently where someone did this and got stuck in a big house. You won't be able to downsize and it causes issues if you need to go into a care home at a later date.

Do you know how much is your house worth?

Market is hot and if property is in good order, you can sell it, take the proceeds and rent for a couple of years or buy a smaller property?

Or you might live to 85, but from 75 not be able to clean your house properly, so want to hire in cleaners. You might not be able to drive from 80 and want to be able to book taxis rather than have to walk to / from the bus stop and use buses. You might want to live in your own home but need to be able to afford to pay someone to rip out the bathroom and put in a wet room so you can cope without needing someone to help you wash.

Have fun in retirement, but do assume you'll live a long time and the last few years might need help, and you won't have anyone to give you that help for free, and so it needs budgeting for.

You’re 55, is your house worth enough to sustain you for another 25 years preferably with a roof over your grey head? I don’t understand this question at all, unless you’re in one of those £5-6 million properties.

There would be nothing enjoyable about having to keep looking for a new home when a landlord gives you notice… or rents rising and rising when you want to retire, but if you mean selling a large expensive home to fund a smaller, cheaper one with some money left over then sure - why not?

Do you intend to keep working to fund your current lifestyle? If you are planning to quit work then calculate how long your cash will last you roughly. E.g. If you spend 2k each month including rent, plus the odd extra towards a car etc then you could expect to spend 100k every 4 years. Or do you intend to keep working to fund your life and the house sale money is just for holidays etc?

Are your health issues likely to mean you want to retire before your state pension age and will that mean you need to supplement your income with this equity until your state pension kicks in?

This makes no sense at all.

We've just done it this and it's the best! No balcony but a lovely patio and beautiful gardens we don't have to work in 🥰

In your shoes, I'd start by getting some independent financial advice.

You need to know how much of your house sale proceeds you'd need to invest/save to ensure you can pay rent and bills etc, and how much you'll have left to do what you like with.

This is a straightforward financial question you need to discuss with your financial advisor. They will do projections based on your current savings and pension and your future income from work etc and your possible outgoings in a new house and for the lifestyle you want.

Then you can decide if it’s enough to live on the way you want to live for the next for the next 30 years.

I assume you are still working full time and paying into your pension. How do you plan to replace your salary ?

id sell, go traveling enjoy it whatever :)

To all those advocating Spain. Weather might be lovely but they are bringing in a new driving test seniors have to sit in Spanish. I would love a holiday home in Spain but would not give up driving as = independence.

F

Friends of DH took early retirement at 60, bought a largish motorhome, and have rented out their house (nets them I'd imagine £1200 after any fees a month), this pays for their motoring trips across the continent and are still fine despite the fuel increases. Their FB page is full of lovely places they've explored around the Mediterranean and down to Greece over winter, and are currently in Iceland as they always wanted to go there!

Am quite jealous!

Another thing is that if you settle in Spain or elsewhere you may not be able to access NHS if your health takes a turn I believe you have to pass the habitual residence test. Having a British passport is not enough.
Please don't use mumsnet and flippant wishful comments to make a decision. We all have fantasies but you need to think about this seriously and consult a financial advisor.

I'd first make sure I had made adequate provision for my future care needs and then I'd enjoy myself with the rest.

In your position I would look into equity release. You'd get a bit less than what you would have if you sold, but you would retain the security of a roof over your head. It's miserable trying to make rent out of a small pension. With equity release basically you keep your home but it is the property of the finance company, with you having secure right to live there. None if us know if our retirement arrangements need to last for 4 years or 40. I would only sell and spend if I could be certain to be dead in less than 5 years.

Equity release is really not advisable for people under 70 and even then it can cause massive problems. At 55 you can still get an ordinary mortgage.

I would always ensure I had a roof over my head, but a one bed flat would be absolutely fine in this case. Do you have an amount for retirement? If you do then I'd say go for it

Oh OP life is for living! In your position I would have a think about what YOU want to do. We can all give advice but it very much depends on what you enjoy. E.g
Option 1: sell up and buy or rent a smaller, cheaper property. Use the £ leftover from your sale to live a little.
Option 2: rent out current property and use that to cover rent on something smaller. Won't give you as much free capital but will offer some security.
Option 3: (my preferred, and intended, option once DC are old enough) sell the lot, buy a lovely motor home, downsize everything (less cleaning anyway) and travel the country and beyond. Sleep in a different village each week. Meet new people. Laugh, eat, drink, truly live. Yes there may come a time when you need care, but if you don't have the money and nobody else for them to chase for deprived assets what are they going to do? Will it make a difference to the quality of care home, yes of course but be under no illusion care homes are miserable places no matter how much you're paying. I've worked in so many, none are places I would go (personally I hope by the time I reach this stage Dignitas will be available here, but if it's not then there are worse places to go for a final holiday). Enjoy and make hay while the sun shines and good luck with it!