5 years to go - should we plan to stay or move house

[Vestito]

I’m looking for advice/ opinions/experiences about staying in your current house on retirement. Both of us are 55, and can retire at 60 on a public sector defined benefit pension, with a tax free lump sum.

The mortgage is paid, but we are supporting 2 university going DS’s. They have weekend work but fees, accommodation etc is paid by us. So basically there’s a very small amount of spare cash to spend on the house at the moment.

So I suppose our options include (a) spend nothing on the house now, and sell in 5 years (when we’d have the lump sum to help with deposit, moving costs etc) (b) stay in current house on retirement, and start trying to upgrade now, with a view to staying here long-term (or may have to delay all upgrades until lump sum/kids finish college etc)

The current house is a 40 year old bungalow, pretty accessible. The available options to move to, are usually two-storey. The house does not have any upgrades like triple glazing/solar panels/new insulation etc. Needs work done to wiring etc for solar/electric car etc.

If we do nothing to the house now beyond must-do repairs, the value will be affected in 5 years if we want to sell. The area is not an expensive area so if we were to sell, we would have to downsize to afford a house in one of the towns we’d like to live in.

The current house has enough room for our 2 DSs if they need to live with us, 2 sitting rooms etc. One part could be converted to a one bed flat easily enough. This would not be possible if we move.

Public transport is an infrequent bus (c. 4 a day) from the small village (1 supermarket, 2 takeaways, pubs, library, doctor) about a mile away with no path. If we stay, we need to keep at least one car. If we can’t drive, there is no taxi/uber locally. We have no relatives anywhere near here. If we move, we’d move to a bigger town.

Big garden, with maintenance required due to hedges, grass etc. We already find it difficult to keep in top of, and would need to pay someone to do it as we get older.

TLDR: Having seen older people in my life struggling with stairs/gardens/driving etc we’re torn between staying in a bungalow, where we’ve lived for 25 years (but big garden/costly repairs/a bit far from town) or moving to a more manageable place in a bigger town (but with stairs, and much more limited options for helping out kids if they need somewhere to live - housing is dire here at the moment).

Sorry, this got way too long!

I believe that people overestimate the amount they bank if they downsize. I'd stay and do a renovation job but before your retire, if the costs overrun too much you can stay in work an extra year. Once you've retired that's gone. if you move out of a bungalow at 60 you'll miss it before 70.

I think location is key when you retire as much as having a home you can live in as you age, so would look to move. It is possible to age well in a house, but you need to be able to live downstairs if you need to.

I also would only do necessary repairs now to your current home. You can then decide when you retire whether to do more to it before moving or not.

Also don't feel you have to move as soon as you retire. If you want the kids to have a room with you for longer you can always do a few more years in the bungalow and then move a couple of years in. It will also mean you make a better decision as you will know how you actually spend your time in retirement and what matters most to you. You will also know more about the living situation of your kids as it is rather than as it might be.

@ACynicalDad Food for thought alright. I suppose the likelihood is we wouldn’t bank anything - as if we moved, we’d be moving to a bigger town and prices are higher. I’d say we’d be basically swapping a large older bungalow with a big garden to a smaller newer house, with a very small garden.
@GOODCAT yes, the location is important, we are happy where we are right now, but it’s the retired and aging version of us that I am trying to plan for. Waiting a bit longer after retiring to decide what to do might be the way to go. I’m afraid we’ll wait too long. Both sets of parents talked about moving from their too big and too high maintenance houses/gardens until they all got too old to cope with a big move.

If a smaller garden is a temptation could you build an extra house on your plot, you'd bank more. I also know a couple who built their new house in the garden then sold the original one. Depends on the shape of the plot really.

@ACynicalDadGood idea but unfortunately access to the rear is too narrow, and the position of the waste treatment system would make it difficult for planning. The front area is too small.

I moved / downsized last year. I did it to pay off the mortgage. Not got a lot of equity left but it's gone into a SIPP and an ISA.

This house is smaller and cheaper to run. Downstairs toilet. Will easily fit a stair lift in if needed. On a bus route and close to a supermarket and pub.

I don't regret moving one bit, we love it.

I think being in a walkable community is a very high priority in old age - walking keeps you healthy and gives you many more options if you can't drive.

so on that basis, i'd look to move to the town and find a place that could potentially have a stair lift if needed. but not all old people need a stair lift, especially if you walk and use regular stairs to keep your fitness up.

Everything @GOODCAT said.

For me, between 60 and 65 is probably the optimum time to move.
I would not want to live rurally once I am no longer able to drive, but, if you leave it until you reach that age, you probably won't have the energy to move.

Once old age is on the horizon, it makes sense to live close to shops, bus routes, places where people gather (often, but not exclusively, Church buildings), and I think any move is made easier if you do it whilst you are still young enough to get out and about and join the community where you move.

I would move, and earlier rather than later so you can pay costs while you are still working. I wanted to move to a village a few years back but as DH pointed out we live near a train station, on a bus route and near pub, Drs and shops. We can grow old here.

we are upgrading and doing work on our house while still working so we don’t have to pay for it out of our pension lump
sums

Thanks everyone. Lots of good points to think about. @BG2015 smaller, easier to manage is very appealing to me and I’m conscious that being in a more walkable place would be great for keeping active like @parietal says.

@tryingtobesogood In many ways I’d be happy to move right now but for a couple of reasons we need to hold off - our semi-grown-up kids are still in need of a home for the foreseeable future (and affordable places in towns are too small- we’d be downsizing but at the same price really due to better location) and most of our spare cash is going into college costs (both away from home). The cost to move - deposit, legal etc would empty the bank.

I think as @CarpetKnees suggests 60-65 is ideal. I had in my head 60 as we’d hope to be retiring but maybe pushing the move out a few years would make it easier. We’d know what the needs of the kids would be, and maybe where they’d be in the world too.

I think the biggest problem is the longer we wait, the more updating needs to be done. Oil boiler is probably going to need to be replaced in that time period, windows, wiring etc. We can’t put all of these things off for 5-10 years. We are currently getting roof repairs done as it is.

Like you we are considering downsizing (although we have already retired). The most difficult challenge to us is emotional. We have lived in our house for over 20 years, our youngest child still lives with us, we raised our family in this house and get on well with our neighbours. It’s our home. You have also lived in your house a while and are probably very emotionally attached to it.

However, once my son has moved out, the house will be too big for just the two of us. I don’t particularly enjoy housework, gardening or DIY and I want that time and energy for other activities. My friend, who moved to a smaller house two years ago described downsizing as liberating.

Financially while there are costs associated with moving (Stamp duty, estate agents/legal fees, removal costs, etc) these are balanced, over the longer term, by reduced housing expenses like insurance, council tax and electricity/gas bills, along with less maintenance and upkeep costs. I do think people tend to overestimate how much money they will save by downsizing (unless you move from an expensive area to a much cheaper location and it sounds as if this isn’t the case for you), so it is good that you are considering this so carefully.

From your description you could convert your house into two separate homes (selling/renting one while living in the other). However, you have indicated that the location of your home is not ideal, so this probably isn’t the best option.

On balance, I believe moving is the more logical option. It sounds as if house maintenance is going to be an expensive issue for you if you stay in your current home. I also think a better location gives you more flexibility to adapt and adjust your retirement plans as things arise and will help you meet any unexpected changes. Good luck with whatever you do.

@LittleLlamaTotally agree with you about cleaning, gardening etc. We had a bathroom and 2 bedrooms that weren't being used. It was pointless to live in a house where a third of it wasn't used.

Living in a smaller house has its challenges but we have managed to adapt. We have had the garden landscaped and the kitchen totally done before I retire in July.

We paid £6k in solicitor/estate agent fees.

@LittleLlama yes, that’s it really, location. We’re here a long time too, and do love the house and garden. It has worked well as a family home, and the area was good to grow up in. This is the only house the kids have lived in, though we moved twice before we had them.

But it’s the location as we get older that’s the issue as well as the maintenance. We’re not from the area originally so no family ties and if we were to move to one of the towns we’re thinking of, we’d be 20-30 minutes away from here, so not hard to meet local friends again.

We could convert an extension into a one-bed but it couldn’t be sold separately. More of a granny flat set-up.So could be useful for family but not something that would bring in extra money.

It’s all the unknowns of what the next 5-10 years will bring, both for ourselves, health etc, and for our kids - finishing college, jobs/travel/relationships etc We don’t want to sell the family home that works as a safety net for them, until they have some security. But the longer we wait, the more maintenance issues that will need addressing.

@BG2015 That’s it - the dream, smaller, easier and less expensive to run and maintain, and closer to amenities so two cars are not required. Public transport/taxi available in case we can’t drive etc.
Thanks everyone for responding. It’s clarifying my thoughts although in many ways, we can’t make a decision yet…

We have just retired and downsized. Fortunately for us we are releasing a lot of equity so extra holidays will be paid for over several years. The extra benefit will be a new smaller house and garden so less maintenance in our old age but still within walking distance of shop/post office, doctors and dentist in case one or both of us can’t drive. I don’t have children so can’t rely on any family helping me in my old age hence planning now even though we are still both young and healthy.

We were in a similar dilemma to you 12 months ago OP.

We retire in August 2026 so just over a year now.

We lived in a house that we brought in 1991 and spent so much money on it, completely renovated it and we were torn whether we’d stay there or move to a bungalow.

We decided with the latter and proceeded to sell up and buy a bungalow that needed completely renovating and an extension built - we’d still have the same amount of space as we did before but all on one level so would be easier in later years.

We will still have adequate living space (plenty) and enough for guests to stay as we live on the coast.

As you say, in your position, if you wait 5 years and do nothing, you don’t know what the market will be like then? You could spend all the money doing the refurbishment work required and not get a return when you come to sell. If you want to move, why not just move now or in the next 12 months and get the work done you want to have done to the property before you do retire. This is what we’ve done and so glad to have done it this way. Have you had your current house valued? What is the EA’s advice on the housing market in your area - is it likely to sell fast?

If you LOVE your current home then I’d be just more inclined to spend the money on it whilst you still have your salaries and you can enjoy it in retirement. Sounds like you’ve got ample room.

I’d get the re-wiring done and any re-plumbing done first…. Windows? How old are they? What’s the roof like? All points to consider! When was the kitchen and bathroom installed? If more than 10 -15 years ago then I’d be inclined to replace these also so you don’t have to do it again- Unless it’s in good condition!

In regard to garden, could you not relay it all the lawn so ‘easier’ to maintain. You could get someone to mow every 6 weeks or so. It wouldn’t cost much to do that if you can’t manage.

@MN2025 thanks for your reply. I think the issue for us in terms of moving now, in advance, is we really don’t have enough to pay for a deposit, renovations, etc due to financing two in university. In 5-10 years time we’re likely to have our pension lump sum, and hopefully the kids will be self-sufficient by then. We are unlikely to be able to buy something cheaper or another bungalow by moving from our current house and location so no equity release like @hobblingAlong.

I think it boils down to we’ve not enough money - priority is the kids right now. We’ll have to do stuff to the current house as it arises in order of need and then reassess nearing retirement. I think I’ve been trying to nail down a decision that is too early to make!
But I think we will probably have to stay put, and put money into this house, and consider moving later 65-70 if we are lucky enough to be still around!