Are we doing the right thing with this house purchase? Help me see if there are any flaws or if we’re not being sensible!

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I’m 53, DH nearly 60.
We outright own a 50 year old large 4 bed semi. Kids left home and are settled. So we thought we’d put our house on the market and downsize a little. We live in a beautiful area and really don’t want to move outside of about a 1 mile radius.

Weve done a lot to our house over the past 26 years, 6 years ago we put in a new kitchen, double glazing, 2 new bathrooms, cloakroom, plastering etc, spent around 40k.

Everything we are looking at locally to ‘downsize’ into is too small or too old and we’d have to start again with renovation etc so we’ve looked at a new build development locally. A house has come up for sale that is 6 months old - the owners are moving due to an unexpected job loss / change. We love the house and even though it’s another 4 bed it is actually a bit smaller than ours but the bonus is it’s detached.

The only slight issue is that instead of releasing a bit of cash that we were hoping to do we will have to dip into our savings for 30k. It still leaves us with about 50k savings but I’m so worried about taking such a big amount out potentially a year or two before DH retires. I’ll be working a while yet and we can easily save 1k a month is we are careful so with a bit of focus we can make it back up in time.

DH thinks it makes sense as the house is only 6 months old and so it almost future proofs us from big maintenance bills. Our current house will probably need a new roof in our lifetime plus a new boiler in a couple of years. We’d also need to rebuild our boundary walls and new fencing etc. The new house is almost brand new and the kitchen was upgraded etc.

It seems to make sense to move but are we missing anything in the thinking? We have decent pensions so I think we’ll manage ok in the future. The council tax band is two higher than where we currently are and of course there are these estate management fees that will kick in once the development is complete.

Any thoughts please?

What is the 30K extra? the asking price is 30K more than yours has been valued at? The stamp duty? the moving costs inc solicitors + agent fees?

From the little information you have given, I'd be staying where you are. It sounds like you can add more value to that with a new roof, new boiler, boundary and that will probably come in under the 30K and return you more when you do decide to downsize.

It doesn’t really sound like you’ll be achieving anything by moving. You’ll spend a chunk of savings and will have higher council tax and factors bills in future. The only plus is being detached. Unless you can find a house you like that is smaller and cheaper I’d stay put. The money you’d save could go towards the new boiler and roof. We downsized last year from a 6 bed double upper with a horrendously complicated (and somewhat dilapidated) roof to a spacious Victorian ground floor flat in a very buzzy area. We managed to release c£220k - just in time for me to retire! At one point though we were looking at smaller but more expensive houses and then realised we were doing the complete opposite of what we had planned.

I don't think I would move. Doesn't sound like downsizing really, just a sideways move for less space, albeit it detached.

Would it be your final move? Is it future proofed? Room that can be turned into a bedroom down stairs, down stairs bathroom (not just pokey loo) ?

Can you widen your search parameters?. 1m seems quite small (but then I am very rural - 1m radius would turn up nothing for me, neither would 5 miles) . Although I know location, location, location and all that.

The 30k is the total cost of the extra for the new build and moving fees, stamp duty etc.

Our current house always feels like there’s something to do to it, we’ve done lots to the inside but now the outside is tired and here we go again, spending money.

The layout of our house is not ideal and we have rooms that are never used. The newer house is smaller downstairs as it has an integral garage but all rooms are large and will be used. It will also be easier to clean.

The newer house build is on a lovely estate that is all new and tidy. Our street has become scruffy over time and as there is a primary school at the end of the street the parking and traffic congestion can be a nightmare around school times.

On the other had our garden is south facing but new house is NW - elevated though so the sun isn’t hindered when it does come around.

I probably wouldn’t want to downsize to anything smaller than the new build we’ve seen. We like some space and we have family around for meals regularly.

So let me get this right - you are downsizing but paying 30k more for a smaller house in the same location plus more expensive council tax and estate fees? Even just based on the estate fees I would even consider it but heading into retirement is madness.

Speak to a mortgage advisor about financing the move. You can 'easily' get mortgages up to retirement age of 75, some mortgage companies (Barclays?) even offer mortgages to retirement age 80.
We are 'older age' and looking to move from a semi that we've completely renovated (except almost similar bits as your place might need), but I would prefer to be in a detached property. So we will probably have to upsize to get a detached place!
You're in a very similar situation to us, why wouldn't you want to move to a newer property that suits you better? :)

We won’t take another mortgage now, we will hopefully have several lump sums coming in our latter years from DB pensions and DC pensions which will top our savings back up. We really need to go detached, we have an elderly neighbour either side at the moment - the one attached to us has the TV up so loud. When they move on there will definitely be a family moving in as there is a very sought after primary at the end of the street. My neighbour over the road has had this and is older than us - she is driven demented daily by the noise of the boisterous children next to her. I can envisage it happening to us and we don’t need to live by a school any longer.

I would be a little suspicious of the reasons the current owners are moving. I'm not sure how you can verify this, but I would be worried that there is something about the house/area which has encouraged them to move.

Also, don't be fooled into thinking new builds are problem free...There are loads of reports in the news of new home buyers having so many issues with poorly made houses. And once you're in them, it's very hard to get the problems resolved. Do you know much about the house building company? I would review them thoroughly beforehand. Some are renown for bad/poor builds.

I think you need to reframe this from downsizing and freeing up money, to finding somewhere more suitable for your needs. Then the question becomes will this property suit you forever, or would you need to move again? Is there a downstairs loo, room for a stair lift, step free access, good bus links etc? Would it become too big to manage the house and/or garden at some point? Does the raised garden mean you couldn't use it at all if you had mobility issues? If you would have to move again, could you afford it? Make sure you have a full survey and check out the potential nightmare neighbours

It is a little naive to think you will have no maintenance just because the house is new. New builds these days are notoriously flimsy with some truly shocking short cuts and it can be hard to make companies pay up. How well-established is the company?

Go back to the property - check the water pressure by turning taps/showers on upstairs and downstairs simultaneously. Check the flush and how quickly the sink drains away. Check all the windows and doors shut smoothly. Open storage cupboards to see how much room they have for bulky items. Are there pictures on the walls and are heavy furniture items like bookcases and wardrobes safety attached to the walls, or are the walls too flimsy to drive a nail in? Ask neighbours if they have had any issues with the new build (also a good way to check if they are moving due to nightmare neighbours.)

Even if it is all good, I wouldn't downsize to a more expensive property.

You are not in a hurry. 30k is a lot to sink into the property market at the moment, just when larger houses are losing value because families can't afford them. I'd wait for the right smaller cheaper house to come on the market.

The company is Persimmon and yes I’ve also read some horror stories. I absolutely know (for reasons that I can’t divulge) that they are selling due to a job loss so it’s not a house / neighbourhood issue.
There is a large downstairs loo which is big enough for wheelchair access and we can convert the garage later on if necessary.
Top of garden outside the house is the elevated part (it’s a large patio area) but there are some steps then down to a squared grass garden.

Go for it! We’re already retired and doing something similar in our village location. If it’s your forever home you’ll recap the £30000 over the years and you’ll have money from your pensions to offset it. When retired you spend more time in your home, so it’s got to be somewhere you love.
One reason we’re doing it is for the inheritance tax allowance and the excitement of a new house and garden to play with!

I would definitely go for it. The very last thing you need, as you get older, is an old house.

A new build will come with a ten year guarantee and repairs are a long way off.

My parents moved from a 1930’s 5 bed detached for a new build 4 bed detached about 15 years ago. I’m so glad they did and so are they, for all the reasons you describe - the low maintenance, everything is done aspect is very appealing. The old house was starting to need more work than they needed or wanted to do to it - even cutting the hedges was become too much. I feel much happier knowing they are in a warm, damp-free house that can continue to work for them as they get older if they don’t want to move - eg can convert a room downstairs to be a bedroom (they are older than you, 75-80 currently).

Having said that, remember that even a new build won’t be new forever - they’ve just had a big bill to replace fences, and the conservatory (which they didn’t like in the first place) was leaking so they recently had a proper roof put on - so you’ll still need to factor in some maintenance.

Buying a new build doesn’t guarantee everything will be perfect from the start, either, but given it’s a few months old any major issues have hopefully been resolved by the builders already. Don’t forget to factor in the costs of annual maintenance or service changes, and remember that even new build estates aren’t guaranteed to look as neat and perfect after a few years!

I would have thought a bungalow would be a better buy if you are looking to future proof, particularly if you are already talking about converting the garage in the new house, which will cost a bit too. Is the new house close to amenities like local shops, doctors and dentists? That should be a priority too. Could you look a bit further afield for something better/cheaper. It sounds like you are determined to sell the current house, perhaps more because of location than potential future costs if you are expecting lump sums in the future they could cover future expenses in your current house. I might keep looking.

Which house would you rather live in- just on the house, not the finances?

Are you confident that you wouldn't be overpaying for the new house? New builds don't hold their value and it's a buyer's market. How long has it been for sale and what would you be offering relative to asking price?

I honestly wouldn't. £30k spent out of £80k savings is too high a proportion. Also, a 50 year old house isn't really that old and it sounds like you've upgraded it any made it lovely.

If you want to ' future proof ' , you really should consider a bungalow .
We were younger than you when my dh found out he had cardiomyopathy , he was fit and healthy ish and still working and able to do everything he wanted , but we sold up and bought a bungalow for future whatever's .
It was such a good move , detached still a big garden and meets our needs space wise .
Many of our friends & family love it , and even one couple we know did the same as they saw the sense of it .

The house is up for sale for the same price as new builds still being built on that site. They have spent on extras such as fully tiled bathrooms, upgraded kitchen with all integrated appliances. Upgraded floors and carpets.

Difficult to say which house I’d prefer as I do love our house but due to its age there’s niggly issues cropping up all the time. Also, it’s got an odd layout and I find cleaning all these rooms tiresome.

There are very few bungalows in our area and ones that are available are tiny ones for single people or very elderly with no gardens etc. The new estate is on the periphery of the village so will need a car. This is obviously a potential downside for future elderlies.

New build estates can be very noisy with young families, dogs etc. Often homes in an older area can be more settled and you feel you 'fit' with the neighbours better. But at least the new house would be detached.

I wouldn't touch it.

You'll be dealing with the building still settling so expect issues with your decorating for a year or so. You're also still well within snagging issues territory and I find the quality of finish on new builds is surface level good looking but the moment you look at the details it's shite (painting, wonky edges, poorly fitted kitchens etc).

Also with the current heat issues - new builds are often reportedly boiling hot and impossible to cool. I'd want to visit it on a hot day and see if it's affected.

The absolute requirement for a car is reason alone for me to be put off.

£30k cost for greater daily inconvenience doesn't sell it as a good move.

Wrong house, keep looking!

The house is up for sale for the same price as new builds still being built on that site. They have spent on extras such as fully tiled bathrooms, upgraded kitchen with all integrated appliances. Upgraded floors and carpets.

Has it been on for long? Usually new builds attract a premium of 10-20% as actual new builds (ie you're the first occupant). Resale price is therefore lower, even though it's still very new- a bit like buying a new car which loses value the second you drive it off the forecourt.

Do you know why they are selling so quickly?

From your description of your current house and also of the new house, your finances etc I think you've answered your own question. It sounds like you really want the new house so go ahead. I lived in a Persimmon home for years and it was a fantastic house. My niece also bought a Persimmon home 5 years ago and she hasn't had anything major wrong with it, odd jobs like touching up a bit of paintwork and they were rectified immediately. I think it all depends on the site manager at that particular development. Maybe you could ask on the Facebook site for that area if anyone has had any major issues with the houses on that development.

Db bought a persimmon property
New build
600 snagging issues
Sewage in the garden etc

wouldn’t touch them with a barge poll