The Financial Puzzle of Moving Later in Life – What to Consider Before You Buy or Sell
Collaborative Post
For many people in their 60s, 70s or even 80s, moving house can be about more than finding a new place to live. It may be about safety, staying connected to family, or simply keeping things manageable. But behind every later-life move is a range of financial, legal and practical decisions that require careful thought.
Should you downsize, borrow, sell, or stay where you are? There isn’t a universal answer. The right decision depends on your personal goals, your health, your resources and the realities of the housing and lending markets.
This guide explores key considerations for late-life moves. It includes options in the UK and insights for families helping relatives abroad.
Know what the move is trying to achieve
Begin with your reasons for considering a move. Are you hoping to reduce your costs, find a home that is easier to manage, or relocate nearer to family?
Once your goal is clear, it becomes easier to evaluate the type of housing that suits your circumstances. In the UK, a wide range of specialist housing options is available for older people who want a combination of independence and support.
These include:
- Retirement villages with shared facilities and security
- Shared ownership schemes to reduce purchase costs
- Abbeyfield homes which offer privacy with light-touch care
- Almshouses, often offered by charities, with community-based living
Each scheme has different terms around eligibility, ownership, and fees. Reviewing them in advance can help avoid financial or legal surprises during a move.
Find out if borrowing is still possible
Not everyone funds a move with savings. Some later-life movers look into mortgage options to help with the cost of buying.
Getting a mortgage when you are over 70 is increasingly possible, but lenders will review applications differently. Pension income is assessed using different criteria, and the mortgage term is usually shorter than for younger borrowers.
If you are considering a mortgage later in life, make sure to understand:
- Whether the mortgage will be interest-only or repayment
- What evidence of income will be required
- Whether you meet the age criteria for the full loan term
- How monthly payments might affect your lifestyle or benefits
It may be helpful to speak with a mortgage adviser who specialises in retirement lending. They can assess your options across multiple lenders.
Understand what reverse mortgages can offer
If your preference is to remain in your current home, a reverse mortgage could be another way to release value from your property without having to move.
With a reverse mortgage, the lender provides you with a loan based on the equity in your home. You stay in the property and repay the loan when it is eventually sold, typically after you pass away or move into long-term care.
This can be useful for older homeowners who:
• Have limited income but a valuable property
• Wish to remain in place for as long as possible
• Need funds for home improvements, care, or everyday living
Reverse mortgages affect the amount left in your estate and can influence eligibility for certain benefits. Discussing the decision with family members is often a good idea.
Think through the costs of selling, especially abroad
Selling a property always involves costs. In the UK, these typically include estate agent fees, legal fees and possibly stamp duty on a new property.
If you are selling a home abroad, the rules may be quite different. In Canada, for example, estate agent commissions are usually based on a percentage of the sale price. These rates can be higher than those in the UK and may not always be clearly explained.
It is also important to check:
- Whether you will need Power of Attorney to manage the sale remotely
- What local legal representation is required
- How tax rules apply in both countries
- Whether any banking restrictions could delay access to the sale proceeds
Look at the full financial picture
The decision to move later in life is rarely about house price alone. Many of the most significant costs come from services and one-off fees that surround the sale or purchase.
Include the following in your budgeting:
- Solicitor or conveyancing fees
- Stamp duty or land tax if applicable
- Service charges and maintenance in retirement properties
- Ground rent or leasehold obligations
- Travel costs if moving away from familiar services or people
- Insurance and council tax
Also consider whether your new arrangements will affect any financial support you receive. For example, changes in capital can alter benefit entitlements, and some homeownership decisions may influence social care assessments in the future.
Make time to review everything with support
Most people make better decisions with input from trusted sources. That might include adult children, a financial adviser or a solicitor. Even if you are confident about your decision, a second opinion can highlight things you may have missed.
Helpful steps include:
- Creating a file with all relevant documents in one place
- Holding a conversation with your family about your preferences
- Asking a financial adviser about borrowing or equity release
- Reviewing your will, Power of Attorney, and co-ownership agreements
Taking time to plan can make later steps easier and reduce stress during emergencies or unexpected changes.
Conclusion
Whether you are planning a move, considering a mortgage or looking into equity release, the key is to approach the decision with clear goals and full awareness of the costs and implications.
Housing is not just a financial asset. It is where your daily life unfolds. With preparation and the right guidance, older adults and their families can make confident choices that support independence and wellbeing in the years ahead.
This article is for information only. Please consult a professional adviser before taking major financial decisions.
Image: Getty Images on Unsplash