As a result more retirees are now downsizing their property not solely for practical purposes, but to release the equity they have built up to fund a new phase in their life.
It is estimated that as much as one third of the property market is trading down at any one time, releasing an average of £112,000 per transaction. The reasons for downsizing from a family home are still the same as they have traditionally been; minimal home maintenance, fewer rooms to clean and a smaller garden, but the trend for releasing equity is steadily growing so that people can afford luxuries in later life.
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Sally and Donald Lawson, a retired couple from Dorking have made the move from their four-bedroom family home to a two-bedroom apartment nearby. Commenting on their move Sally said, The extra money we freed up by downsizing has allowed us to really start enjoying life. I have always wanted to return to college and take computer classes, and now I have the funds to do it.
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People retiring now are largely from a property rich generation which allows them the freedom to make a wise investment in a new home, whilst at the same time releasing money from their previous property which will give them a more relaxed lifestyle. Without the time-consuming everyday chores which may have dominated the day in a larger house, they now have the extra capital so that they can make the most of their free time in any way they so choose.
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