The average London house price is claimed to be £646,000, and for many this means that a large proportion of their wealth is tied up in their home.
James Skidmore, Head of Mortgages at AAG, explains why downsizing is becoming more popular.
“We are seeing Londoners unlocking the value in their homes by selling up and purchasing properties that are both cheaper, smaller and in up and coming areas or moving out of London to the suburbs and even beyond.”
“By paying off their mortgages and exchanging their London properties for something smaller, people are able to provide themselves with an income.” James continues, “It makes it an attractive proposition for those looking to retire early or those who want to fill their gap in their pension funding.”
But, it’s not just those looking towards retirement.
“We’ve also seen clients looking to downsize to improve their quality of life. Moving out of London and using the value they’ve unlocked in their property, to provide themselves with a nest egg to boost their income.”
Downsizing is certainly forming part of more of our client’s long term financial plans.
Your home or other property may be repossessed if you do not keep up repayments on your mortgage.