Are You Considering Downsizing to Release Equity?


 Are You Considering Downsizing to Release Equity?

A more traditional form of releasing equity is to Downsize. This is when you sell up and move to a cheaper property to release equity to fulfil your lifestyle choices.


Things you might consider before downsizing may include the local area you’re moving to, good: link roads, schools, ‘pop-to’ shops, train and bus links, parks, and over all, friends and family.


Other points to consider include:

  • How much money will you have to invest in your next property to make it a home?
  • You may have to let go of the classic sentimental furnishings you treasure.
  • Your children’s children – Where will they stay should they want to visit during the holidays?
  • You may have to say goodbye to your community.
  • If property value continues to rise as predicted, the new lower value home will be on a lower rung on the property ladder, thus, you will lose out on return from the increase in value of your current home.stock-vector-senior-couple-moving-their-belongings-from-a-big-family-house-into-a-smaller-home-eps-vector-346889246



The average cost of moving is £8,248 and £20,825 [1] if you live in London. It’s important to recognise the charges accrued during the process: estate agent’s fees, legal costs and stamp duty.



Whilst downsizing may be a traditional method of releasing equity for some, for others a modern Lifetime Mortgage can be a viable alternative as you do not have to move home to unlock your property wealth and you remain the owner of your home for life.


Last year only 7%[2] of 3.3 million[3] homeowners over 55 (231,000) used downsizing as a means of releasing equity. Lifetime Mortgages, which allow borrowers to take out a loan against a property and only pay the amount borrowed plus interest on its sale, met on a close par, reaching a record breaking 22,500 deals in 2015[4].  It seems just as many people are turning to Lifetime Mortgages as they are Downsizing as a suitable means of releasing equity.


The increasing popularity of Lifetime Mortgages has been linked to the in-built flexibility and safeguards that make the plans accessible and safe for UK homeowners aged 55 and over who seek to release wealth from their home. (No Negative Equity Guarantee – a clause which ensures your estate will never owe more than the value of your property).
A Modern Lifetime Mortgage
By using a Lifetime Mortgage, you can access your property wealth, tax free, with no monthly repayments unless you choose to.  Be proactive and find out all the info you need to know to make an educated decision regarding the equity in your property.  We offer a no obligation face to face service.  Call us on: 0800 652 2955 for more information.

This is a Lifetime Mortgage and will reduce the value of your estate and can affect your entitlement to means tested State Benefits. To understand the features and risk, ask for a personalised Illustration.

Use our calculator to see how much equity you can release. Click on the link below:


[1], (2014).

[2] Legal & General, (2015).

[3] Legal & General, (2015).

[4] Osborne, (2016).




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  • What are the Pros and Cons of Equity Release?
  • What is a Lifetime Mortgage?
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    Responsible Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register ( under reference 610205.

    This is a Lifetime mortgage which may reduce the value of your estate and may affect your entitlement to state benefits. To understand the features and risks ask for a personalised illustration.

    Any information contained herein is a personal opinion of the author and should not be considered to be advice of any kind. Inheritance Tax planning is not regulated by the FCA. Think carefully before securing other debts against your home. By consolidating your debts into a mortgage you may be required to pay more over the entire term than you would with your existing debt.

    Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,490. Our adviser will talk through the setting up costs of a lifetime mortgage before you make any decision to proceed.