Ultimate Guide to Downsizing. Our Financial Experts Reveal the Five-Year Plan That Will Save You Money—and Avoid Heartache

If your home is becoming too much to maintain and too expensive to run, it’s probably time to downsize. It’s the best way to free up money to help family or splurge on that Caribbean cruise.

But saying goodbye to the childhood home where you’ve lived for 20 years or more is probably the biggest change you’ll experience later in life.

If you wait too long to move, you may find yourself having to make a decision too quickly and the future could be very stressful.

According to downsizing experts, the secret is to create a five-year plan so the process is easier for you and your family.

Five years ahead

Valuing heirlooms

It’s never too early to start sorting through personal belongings and clearing out clutter so you’re ready to move into a smaller space.

Heirlooms can be worth more than you think, so get an expert to value special pictures or furniture so you can decide in peace whether to keep, sell or give them away, says Jennie Hancock of buying agent Property Acquisitions, based near Chichester, West Sussex.

“It can be very satisfying to give cherished items to your children or friends,” she says.

According to Linda Wesson, Managing Director of Hamptons Estate Agents, you can minimise capital gains tax by donating or selling valuables over several years.

“This approach allows you to spread your tax liability and potentially stay in lower tax brackets. One savvy client of mine sold her extensive art collection over five years to reduce her tax bill.”

Tackle the attic

Jennie Hancock advises her clients to start by clearing out the attic and then slowly work their way down.

The attic often contains memories from a lifetime, so don’t leave the cleaning up to your children.

This is the premise of the ‘Swedish clean-up’, where older people clear out their decades-old possessions so as not to burden their families after they are gone.

One tip to streamline your administration is to digitize important documents, photos and memorabilia.

“It can be a great way to preserve precious memories in a space-saving format,” says Linda Wesson, who sees many sellers struggle with last-minute cleanup.

“One client even turned it into a family bonding experience, with grandchildren scanning old photos and creating digital albums. Start early and the process is less overwhelming.”

Consider purchasing your new home now

Real estate agents are seeing buyers in their fifties looking for a ‘place in the sun’, ready for retirement.

If you can afford it, such foresight makes sense, says Marc Schneiderman of London estate agency Arlington Residential.

“Without the pressure of the ticking clock, some clients buy a second home – more often than not a single-story apartment – ​​and rent it out until they are ready to move in. That is very sensible planning,” he says.

But bear in mind that an idyllic holiday destination isn’t always an ideal permanent home, says Simon Barnes of estate agents Winkworth.

‘Winter won’t always be as vibrant, vibrant and beautiful as summer. And is there enough local stimulation? Think about what really counts.’

Four years

Start researching your move

When looking for a new place to live, think about practicalities, such as how easy it is to get into a new social scene. So test out what it’s like to live there.

Visit a place a few times a year. Rent a cottage for a week or two, for example – prices are much lower outside the high season.

“It’s really important to go to the shops or the pub and talk to the locals,” advises Simon Barnes of Winkworth.

“Start building relationships that will make you feel at home in your new home country.”

However, if you want to release your equity, you may want to consider moving to a less affluent area.

“Ask yourself what is most important to you in this move: a smaller home but in the ideal location, or are you prepared to compromise on space in exchange for more square footage?” says Hamish Spencer-Nairn of Strutt & Parker in Perth, Scotland.

Given that the average cost of a move is £12,000, it’s best to calculate whether you’ll need to move again in 10 years’ time.

Is the property fit for the future? If you are unable to drive in the future, what is the public transport network like in the area? Claire Carter, Country House Manager at John D Wood, asks these key questions for downsizers. ‘Do you need a downstairs bedroom and bathroom in case you can no longer manage the stairs? Do you need a spare bedroom for a live-in carer, is it suitable for a stair lift and are the doors wide enough for a wheelchair?’

If you feel paralyzed by the magnitude of such a big decision, there are plenty of companies that offer downsizing services, including counseling.

‘I come across people who don’t have the emotional or physical energy to take the next step. It takes psychological guidance to make them realise what the possibilities are,’ says Andrew Dewar of Curchods Downsizing Service.

Three years

Maintain your property – but do you also make improvements?

Keeping track of your property in the run-up to a sale is essential. ‘Buyers can spot a desperate seller in a run-down house from miles away,’ says Claire Carter of the John D Wood agency.

This may mean painting your home every three years or fixing other major maintenance issues such as windows, gutters, and roofs.

“Don’t neglect your garden either: keep shrubs in check and make sure trees don’t block natural light,” says Hamptons resident Linda Wesson.

What do experts say about spending money on refurbishing your home? ‘Don’t try to guess what buyers want by adding a new kitchen or bathroom,’ says Will Peppitt of Savills’ country house division.

‘I’ve seen so many new kitchens end up in a container, by their new owners.

‘The only thing I would consider spending money on to add value is a second home, such as an outbuilding.

‘If you don’t want to spend too much money on building a house, make sure you get a building permit so you can show buyers what they can do with it.’

Gary Howorth of Chestertons London estate agents agrees that it’s a waste to fit a new bathroom or kitchen, but he suggests fitting new taps if necessary. ‘My advice for renovating is to do everything or nothing at all,’ he says.

Two years

Increase clearance

Getting the most out of selling your home requires careful preparation.

According to Will Peppitt of Savills, March is the perfect time to market a country house. If we count back, the photos would have been taken in April or May of the previous year, when the garden was looking its best.

Lisa Jacobs from Winkworth, Devizes, advises walking around your property as if you were seeing it for the first time – like a buyer.

‘If a room is looking tired, give it a lick of paint. Have a professional deep clean of the estate agent photos – it’s a good investment,’ she says.

Before you can take the photos, you first need to tidy up the yard and clean up the house.

‘Invite the kids over for Sunday lunch and give them a deadline to get rid of everything they have before you throw it out, like the mini gym in their old bedroom,’ she says.

It’s emotional to part with valuable possessions now, and it also makes the move cheaper. But don’t be tempted to put things in storage right away, advises Helen Sanderson, professional declutterer and author of The Secret Life of Clutter.

“Storage is a waste of money and postpones the problem,” she says.

Start by throwing out old work clothes. Sell them on Vinted or donate them to Smart Works (the charity that helps job seekers equip themselves with their clothes).

“Once you’ve tackled the attic, start with the garage. That’s usually the dumping ground for stuff that gets classified as ‘I don’t know.’

‘Take items to auction houses and charity shops, sell them on Facebook Marketplace or ask the British Heart Foundation to collect them.’

If you don’t want to be ruthless and need help, you can do a three-day bootcamp with Helen’s team. Some downsizers do two or three (helensanderson.com).

One year

Get ready to sell

Now it’s time to get all your paperwork in order.

Hire a lawyer to resolve any legal issues with the property and determine what documents you need to submit.

It is probably a lot more than the last time you sold a property. This includes gas, electricity, boiler, window and even chimney sweep certificates.

‘Don’t wait until you go to an estate agent to do this. If your electrics aren’t up to code, it could take weeks to fix,’ says Nigel Bishop of Recoco Property Search.

In the garden, plants like to be moved in early fall or spring, says Hamptons resident Linda Wesson, so consider what you’re bringing. “We helped one customer take cuttings from her beloved rose garden so she didn’t have to leave everything behind,” she says.

If a plant is too large to move, take cuttings and put them in small pots so you can regrow the plant in your new garden.

Research the local housing market so that you can use appraisals from at least three real estate agents to determine which is the most realistic.