The Ultimate Guide to Downsizing Your Home. Our Financial Experts Reveal the Five-Year Plan That Will Save You Money and Avoid Headaches

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

However, leaving the family home you have lived in for 20 years or more is likely to be the biggest upheaval in later life.

If you leave the move too late, you may end up making hasty decisions and facing a very stressful future.

The secret, according to downsizing experts, is to make a five-year plan to make the process easier for you and your family.

Five years ahead

Valuing family heirlooms

It’s never too early to start organizing your personal belongings and getting organized so you’re ready to move into a smaller space.

Family heirlooms can be worth more than you think, so ask an expert to assess special paintings or furniture so you can take your time deciding whether to keep, sell or give them away, says Jennie Hancock of buying agency Property Acquisitions, based near Chichester, West Sussex.

“Giving treasured items to your children or friends can be very satisfying,” she says.

Gifting or selling valuable items over a number of years can minimise capital gains tax (CGT) liabilities, says Linda Wesson, principal director at Hamptons Estate Agents.

“This approach allows you to spread out your tax liability and potentially stay within the lower tax brackets. One very savvy client of mine sold her extensive art collection over a five-year period to reduce her tax bill.”

Tackling the loft

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

The loft is often home to a lifetime of memories, so don’t leave the task of cleaning it up to your kids.

This is the premise of “Swedish death cleaning,” in which older people pare down decades of possessions so as not to burden their family after they die.

One tip to simplify things is to digitize important documents, photos and memories.

“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 her grandchildren scanning old photos and creating digital albums. If you start early, the process will be less overwhelming.”

Consider buying your new home early

Real estate agents are seeing buyers in their fifties looking for a “place in the sun” ready for their retirement.

According to Marc Schneiderman of London-based estate agency Arlington Residential, such foresight is shrewd – if you can afford it.

“Without the pressure of time, some clients buy a second property, usually a single-storey apartment, and rent it out until they are ready to move in. This is very sensible planning,” he says.

But it’s worth remembering that an idyllic holiday home destination isn’t always an ideal place to live full-time, says Simon Barnes of Winkworth estate agency.

“Winter won’t always be as lively, bustling and beautiful as summer. And is there enough local stimulation? Think about what really matters.”

Four years

Start researching your move

If you want to look for a new place to live, think about practical aspects, such as how easy it is to integrate into a new social life. So try out what it’s like to live there.

Visit a place several times at different times of the year. Perhaps rent a cabin for a week or two – prices are much lower outside of peak season.

“It’s really important to go into the shops or the pub and talk to local people,” advises Simon Barnes from Winkworth.

‘Start building relationships that make you feel like you belong in your new home.’

However, if you want to free up capital, consider moving to a less prosperous area.

“Ask yourself what is most important to you when moving – a smaller home in the perfect location or are you willing to compromise on square footage for more square footage?” says Hamish Spencer-Nairn of Strutt & Parker in Perth, Scotland.

Considering that the average cost of a move is £12,000, calculate whether you will need to move again in 10 years.

Will the property be suitable for the future? If you can’t drive in the future, what is public transport like in the area? Claire Carter, cottage manager at John D Wood, asks these key questions to those looking to downsize. “Should it have a ground floor bedroom and bathroom for when you can’t get up and down the stairs? Do you need an extra bedroom for a live-in carer? Is it suitable for stairlifts and are the doors wide enough for a wheelchair?”

If you feel paralyzed by the enormity of such a major decision, there are many companies that offer downsizing services, including counseling.

“I know people who don’t have the emotional or physical energy to decide what to do next; it takes psychological counselling to make them understand the possibilities,” says Andrew Dewar of Curchods Downsizing Service.

Three years

You maintain your property, but do you make improvements?

It’s vital to be aware of the status of your property before selling. “Buyers can spot a desperate seller in a derelict house a mile away,” says Claire Carter of John D Wood agency.

This could mean painting your home every three years or other key maintenance issues like windows, gutters and roofs.

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

What do the experts say about investing money in renovating your property? “Don’t try to guess what buyers want by adding a new kitchen or a new bathroom,” says Will Peppitt, of Savills’ country house division.

‘I’ve seen so many new kitchens thrown away by new owners.

‘The only thing I would consider spending money on to add value is secondary accommodation, such as an annex.

“If you don’t want to go through the expense of building one, get planning consent to show buyers what they can do.”

Gary Howorth of Chestertons London estate agents agrees that it is a waste of money to invest in a new bathroom or kitchen, but suggests installing new tapware if necessary. “My advice for refurbishments is to do it all or not at all,” he says.

Two years

Increase the order

Maximizing what you receive from the sale of your home requires careful preparation.

The perfect time to “launch” a cottage on the market is March, so, working backwards, that means having the photos taken in the earlier April or May, when the garden looks its best, says Will Peppitt, of Savills.

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

“If a room looks dated, give it a fresh coat of paint. Get a professional deep clean before you take the real estate agent’s photo – it’s a good investment,” she says.

Before the photos, you will have to tidy up the garden and tidy up the house.

‘Invite the kids over for Sunday brunch and give them a deadline to remove anything they own before you get rid of it — the mini gym in their old bedroom, for example,’ she says.

Getting rid of prized possessions now is an emotional decision and will also make the move cheaper, but don’t be tempted to simply put things in storage, advises Helen Sanderson, tidying expert and author of The Secret Life of Clutter.

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

‘Start by getting rid of old work clothes – sell them on Vinted or donate them to Smart Works (the charity that helps equip job seekers).

‘If you’ve already tackled the attic, start with the garage, which is usually where all the stuff classified as “I don’t know” gets thrown away.

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

If you can’t stand being ruthless and need help, you can have a three-day boot camp with Helen’s team; some downsizing organizations have two or three (helensanderson.com).

One year

Get ready to sell

Now is the time to gather all the documentation in order.

Hire a lawyer to sort out any legal issues with the property and identify what documents you will need to provide.

There are probably many more than the last time you sold a property. These include certificates for gas, electricity, boiler, windows and even chimney sweeping.

“Don’t wait to see estate agents to do this. If your electrical system isn’t up to standard, it could take weeks to get it fixed,” says Nigel Bishop of Recoco Property Search.

In the garden, plants like to be moved in early fall or spring, says Linda Wesson of Hamptons, so think about what you’ll take with you. “We helped a client take cuttings from her prized rose garden so she didn’t have to leave everything behind,” she says.

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

Research your local real estate market so that when you get reviews from at least three real estate agents you can judge which one is the most realistic.