Would I be mad to sell my house

[dewisant2020]

I've been seriously thinking off selling my home lately and moving into rented accommodation.
The reasons for that is the sale of my house would pay off all my debt and leave a fair few pounds left to enjoy life a bit, I wouldn't have to worry about big repair bills and I could move around a lot more easily.

Some friends say I'm absolutely mad to be even thinking about doing that, would do you all think?

How old are you? Are you still working? How much money would you be left with? Do you have dependants?

And probably many more questions!

You will pay rent for the rest of your life but a mortgage eventually comes to an end. Might be hard to get back on property ladder too.

I wouldn't personally, the renting market is in a bad way at the moment and unlikely to be a cheaper option.
Could you downsize instead?

I'm 51 and my daughter is grown up now and living with her partner, my DS passed away so just me at home now.
It would leave me with a good £300k after all my debts were paid.

I would buy a smaller house outright with that kind of money! No rent or mortgage to pay and security.

@Soproudoflionesses that's the thing, once I've sold I'll never be able to get back on the property ladder.
I am coming towards the end of my career now and would like to look for something a little less stressful and easier in the near future so wouldn't have the income to get a mortgage if I changed my mind.

Depends on lots of factors. If you do decide to get another mortgage it can be hard getting back on property ladder eg raising deposit etc. plus there may be drawbacks to renting eg LL could decide to sell etc

we are selling our house with the intention of paying off debt plus getting rid of our current interest only mortgage which was a bad financial decision many years ago when we were hit with financial stress. However we’ve enough equity for a healthy deposit on a new place that actually fits our family’s needs a little better.

only you can decide what’s right for you

It's a terrible idea. How long do you left on the mortgage? How much debt are you in? If anything I would look at releasing equity to pay off debt not selling it. Massively short sighted as you approach retirement age.

300k no way near enough sadly

You talk about your debt. What kind of debt is it? Can you not talk to Step Change the Charity who could help you manage an affordable repayment scheme to your creditors?

Your home is an asset. That asset will continue to increase in value over the years. Why not wait until you are due to retire to sell and downsize and have the spare money then?

I agree, downsize and get rid of your mortgage. Going into rented at your age doesn't sound like a good plan.

@Blossomandbee yes that's always a good option to buy something a bit smaller and buy outright.
I'd like a little 2 bedroom apartment in one of these more modern complexes, something that's easy to clean and maintain failing that a bungalow could also be another idea

Buy a £350k house, spend the next 3-5 years (say) hammering the 50k mortgage then when you are ready to semi-retire you can rent it out for short periods (say 3 months at a time) while you travel / have adventures. You'll also be leaving an asset to your daughter when you die, which she in turn could pass to any children she might have.

What part of the country are you?

If you rent what happens when the LL decides to sell the property as has happened to so many recently?
Have you looked at rents in your area? Rents here are double (or more!) what my mortgage payments are, it’s shocking.
Renters are all clamouring for properties in lots of areas now.
By all means sell and downsize but I would sell to rent.

I suspect you'd find having to look for a new home every year quite stressful. Esp once you've finished working!

Can you wait a few years, then look to rent in a sheltered housing scheme which will offer a secure tenancy?

I'd buy something smaller, perhaps an over 50's place outright, pay off debt and have that little nest neg safe for later.

You’d be able to get on the property ladder if you move somewhere cheaper. You could buy somewhere outright pretty much anywhere outside of London for £300k (probably a flat in the SE, but if you are by yourself a flat would be fine).

You'd be housing insecure for the rest of your life unless you have a plan for that.

£300,000 spare would buy my house!

Downsize. Get a smaller house or a flat.

Definitely downsize. You only need a one bed - go for it! Sounds like it could be a new chapter for you. Good luck!

I'm not concerned about my debt to much as a whole, I owe about £11k and one of those is a loan that's got about a year left.
I worry as I get older and my income starts reducing about big repair jobs like roofs etc. I will have a pension but it isn't going to be massive and I also thought if I rented I could move with a months notice although I have seen on the news how bad the rental market is at the moment

300k will last you 25 years in rent at £1000 a calendar month

Rent will go up. You will still have bills. What if you live longer that 75. Then what

Crazy idea

Downsize and enjoy the profit but don't go into rental. It's insecure and expensive

I think you would be crazy to just sell and move into rented accommodation. Downsize, yes, but chose to rent? That £300k won't last that long if you are renting. If your rent was £1200 a months that's only enough money for 250 months rent, so just over 20 years, and that's if you spent every penny of it on rent!

State pension is about £275 a week, not even enough to pay your rent each month! Unless you have some large pension pot, you are setting yourself up for a lot of misery in your elder years

Nooooooooooooo!!!! It’s a mistake!! Renting later on a pension is madness.

£300k would be enough to by a large house outright in my area.