Mortgage completely paid off this year - Sell or stay ? Dilemma

Slithery

Little_Miss_Winner said:

Keep trying to answer using the quote facility but keeps telling me body is 9 characters too short - driving me mad !!

Just add enough spaces at the end of your reply so that it's 10+ characters.

kimwp

Have you got funds to help your kids with house deposits? It's difficult for young people to get on the ladder without help - house prices have gone up (as demonstrated by yours), but wages have not gone up proportionally.

getmore4less

Little_Miss_Winner said:

@getmore4less

Even with those bigger salaries it is looking like you have found ways to spend it and more recently that's not been for the house.  Yes and that what worries me, we are spending willy nilly and have taken our eyes off the ball because we could! 

What's your current mortgage payment? £184 ( i know!!) but with home improvements taken over the years (DG Windows/doors, kitchen, loft extension) totals £400 including mortgage.
Can you bridge the gap for a new mortgage. Yes and maybe even overpay with a bit of structure to finances.

What I would recommend is a bit of personal financial planning.

SOA and budgeting

Go to debtfreewanabe and look up SOA.

Fill one if for yourself and find out where all your money goes.

Then look at what people do to cut back.

See if you are just wasting money.

Normally I would say do a retrospective for the previous year but 2020/2021 were not representative but might give a clue.

2019 might be worth a look.

Most important is add up your 2022 income and plan where you want to spend it
Plan==budget

Drawingaline

With your kids being the ages they are I would hang on for at least two more years then move to a house with less bedrooms, but more space outside, bigger kitchen. My parents moved to a big new build when I was 19 and at uni, I spent a total of seven weeks in it when I finished uni before I moved out, my sister not much more a couple of years later. They rattled around in it with my brother and it seemed such a wierd time for them to move. 

We have recently moved to a much bigger property, and our mortgage payment has doubled. It's been a stretch, worth it, but we are very aware that we won't be staying here longer than 20yrs if we ever want to retire. 

Also gardens are not for everyone. I longed for one for years when we lived in rented and flats, when we finally bought a house with a garden I discovered I hate gardening! Too much faff for me!

daybreak8

Definitely seek independent financial advice in the first instance, not only for mortgage advice, but also pensions etc to ensure your needs are met now and in the future.  An independent adviser will look to whole of market to see what the best scenario would be for your family life and needs based on lifestyle, dependents, income etc.  Also bigger property usually means other increased costs such as higher band of council tax, buildings insurance etc and you'll definitely have a large stamp tax duty to pay on top of legal costs of selling and purchasing. 
Only then can you decide if it's a move you really want the upheaval and expense of. 

nobler

I would bide your time and think in terms of what you need/want in a property once your children have moved out. Can you find houses with the kitchen and outside space you want but fewer bedrooms? We have remortgaged every few years to get best deals and the length of term has always been restricted by state retirement age. So amount you can borrow and time scale will likely be limited by oldest spouse's future earning potential. For this reason I would think a mortgage of even double your combined annual salaries would be ambitious and would also reduce your ability to help your children out if you wished to.

GoogleMeNow

We moved to a bigger property (a bungalow), when we were 49 and 53 with two children still at home.  Previous property was mortgage free and new property was with a £180k mortgage for 18 years.  Within 5 years, both children had moved out and the two of us are now rattling round a bungalow which is bigger than we need, but is fairly future proof as there are no stairs and the property is on flat land.  We took on what was a big mortgage but have not regretted our decision.  We could now downsize mortgage free, should we need to.

Think carefully about your future needs.  It is very difficult to predict what may, or may not, be ideal but try to future-proof as much as possible.  For example, stairs and steps may be a problem in later years.  A garden which is pleasant to sit in and easy to maintain should give you pleasure for a long time, but if it is too big, it becomes a chore when you are older (not that you are, of course!).  Think also about how near you want to be to the local shops, or a bus stop and whether you want to be rural or have neighbours - all of which have a bearing when getting about is more problematical.

Liverpool_Anne

I retired last year and I love my garden but the older you get the harder it is to keep on top of it, as you haven't been motivated to get a garden for the past 25 years I am not sure why you think you would need one now. If I were you I would be looking for a smaller property to retire into, there will always be things you need to upgrade when you move which should also be factored in, as you know new kitchens don't last forever. As far as pensions go if you are not on top of your finances now I would make that a priority and save as much as you can wherever is best for you as the drop in income when you retire can be a shock to the system if you haven't planned. As for a garage I am planning to get rid of my car as there is good public transport near me which will serve my needs, if I ever do need a car for a long or difficult journey I can hire one, plus most people I know who have a garage just use it to store stuff and the car never goes in there. Currently you are juggling 3 cars but realistically once you retire how many will you need? The kids will leave at some point and take their cars with them. As for children needing bedrooms when they return for a visit remember it will just be a visit so they will not necessarily need the space they have now. I would take a bit more time to think through what you want and definitely consult a financial adviser. Good luck

skinnylegs

I agree with the previous comment. I would move while you can and in good health. Gardens are great but can become a burden and expense if you cannot tend it yourself. Things in life change. I remember high interest rates and not being able to afford holidays or cars. Do not overstretch in case of illness or job losses. Artificial intelligence could remove some jobs, companies go bust and we don't know what else the pandemic will bring. There could even be another world war with China, Russia, Ukraine and Taiwan which could affect us. Sorry to be so pessimistic but bad things do happen and things don't always stay the same. Good Luck!

Racky_Roo

I would also factor in the cost of moving too. EA fees, stamp duty, searches, surveys etc. It's very expensive and unbelievably stressful these days.

Could a few changes at home mean you could love it (I sound like Kirsty Allsopp) but it's amazing what a new kitchen or making over the yard could do for you, plus it'll make the house more saleable if you do choose to move later down the line.