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Emotional & Other Factors in Choosing Downsizing or a Lifetime Mortgage

For many approaching retirement, the choice between downsizing or obtaining a Lifetime Mortgage is not just financial. Emotional considerations can play a pivotal role in that decision-making process. 


1. Familiarity and Stability 


Moving from a long-held family home brings significant changes. Adjusting to a new location, new neighbours, and different routines can take time and add stress, particularly if there are strong emotional ties to the family home. 


With a Lifetime Mortgage, clients can retain the familiarity of their home, which is often the primary motivation for many who decide to ultimately choose a lifetime mortgage over downsizing. Staying in your own familiar home offers comfort and continuity that, for many, outweighs the financial aspects. 


2. Legal and Additional Costs 


Downsizing involves costs like legal fees, estate agent fees, and stamp duty. These additional costs and the upheaval of moving can be prohibitive and daunting at the same time. In contrast, Lifetime Mortgages involve legal costs specific to the chosen product and in most cases in known up front. The legal costs can often be circa £1,000-£1,200 for a straightforward case, but skip estate agent and stamp duty expenses. 


With a face-to-face approach, Penn Financial is committed to helping clients fully understand their options and make informed decisions that align with their life and future needs. 


Contact: 

Paul Smith 

0333 34 44 34 8 

 

The information provided in this article is not intended to constitute professional advice and you should take full and comprehensive legal, accountancy or financial advice as appropriate on your individual circumstances by a fully qualified Solicitor, Accountant or Financial Advisor/Mortgage Broker before you embark on any course of action. 



Downsizing or lifetime mortgage

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