End-to-end service from KRS for downsizing over-55s

Published on

downsize

Key Retirement Solutions is launching a nationwide service to handle the house buying and selling process for over-55s.

Its new business Keymove Property Services charges a total 2.5% of house sale prices for the end-to-end service.

The firm’s research shows 18% of over-55s plans to downsize in the next five years to raise money.

They aim to raise an average of £78,000 from moving to less expensive homes – the equivalent of around £78 billion – with 24% planning to give money to children to pay for house deposits and other spending.

Around 23% are downsizing because of financial worries – 19% say running costs of their home are too high while 1% cannot afford their mortgages and 3% have interest-only mortgages with no ability to repay the loan on maturity.

22% of over-55 homeowners are unconcerned about the house buying and selling process. The hassle of moving home is the biggest worry for 60% while 49% are concerned about the expense. 34% are concerned about delays in the house sale process while 27% are worried about negotiating their sale price.

Keymove’s believes its research shows there is strong demand for the launch – 59% of those questioned say they would be interested in finding out about a service which can handle the buying and selling process. On a typical £200,000 property Keymove would charge £5,000 + VAT in total for its service.

The cost covers all legal and conveyancing fees; estate agency fees; the mandatory Energy Performance Certificate; an independent valuation survey; two further valuations from local estate agents recommended by Keymove based on those which have sold the most appropriate properties in that area; and a 17-page valuation survey highlighting property sales in the area to give comprehensive detail on the sale price range that should be adopted.

Once a property is found a ‘property passport’ is provided which provides information about local amenities such as doctors and dentists, local transport, shopping and things to help with finding the right property in the right location.

The service includes help with negotiating the house sale (27% worry) and purchase price (21% worry) – an extra 1% negotiated for example on the sale price of £200,000 house would add £2,000 to the money released for the customer at no extra charge.

Key Retirement has appointed Vic Pegna as Head of the new initiative. He has more than 20 years’ experience in estate agency financial services with Countrywide and Your Move.

Dean Mirfin, group director at Key Retirement Solutions, said: “The launch of Keymove Property Services is the logical next step for the Key Retirement Solutions and builds on our expertise and experience in equity release and annuities and estate planning.

“We regularly advise customers not to proceed with equity release as their real preference is to look at downsizing as an alternative and Keymove Property Services offers comprehensive advice and help. There is huge demand for downsizing with nearly one in five or around a million people planning to do so in the next five years.

“But there are real fears about moving house and the problems involved which is not surprising considering many older people will not have moved for years. The risks of getting it wrong or losing money are real too as it is a decision they will literally have to live with.”

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...

Atom bank breaks Near Prime record

Atom bank has reported another record-breaking month for Near Prime activity. Over the course of...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Other news

Lenders must step up on high LTV products

Things are on the up for borrowers with a smaller deposit. The financial information...

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...