Troubleshooter: We want to move house but don’t want to sell it.

“When we bought our house three years ago, we moved ‘sideways’ to avoid taking out another mortgage as we neared retirement.

Since then we’ve started taking money out of my husband’s pension and taking a 25% tax-free lump sum which we’ve invested in two share and share ESAs.

Between us we hold £300,000 in these two ISAs, which we have built up by putting away the maximum £20,000 a year. We also have around £12,000 in savings within easy reach.

I’m 65 and get £18,000 a year from my final salary pension and will soon get £8,000 a year from my state pension. My husband, aged 67, gets a state pension of just under £10,000 a year. The rest of the pot is approximately £600,000.

Now we want to live in a better house but we don’t know the best way to help this money. HeS We are spending £650,000 on a new house and rather than putting our house on the market, we want to wait for our ideal house to come up first and then make an offer.

We were then selling our house for around £450,000. If the purchase takes place before we sell, what would be the best way to make the money? We don’t hate taking out loans, but based on our income, I guess we don’t get much. Are stocks and shares ISAs and larger pension pots considered by lenders?

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If you buy another property before selling your current one, you will have to pay an additional stamp duty of 3%.

Troubleshooter says:

If you buy another property before selling your current one, you will have to pay 3% stamp duty on additional properties. This will be above the standard rate, meaning you’ll need £42,000 up front for a £650,000 house.

As long as you sell your current home within three years, you can get a stamp duty refund, giving you a £19,500 refund.

It sounds like you and your husband are in good financial shape. Your husband has taken 25% of the pension he is entitled to tax-free, so any other income he takes will be deducted as income.

Financial advisors I’ve talked to say it’s wise to use your pension as income in retirement rather than using the money to pay for a new home.

It takes decades to accumulate such a healthy retirement pot, and you don’t want to run the risk of running out of money in retirement.

Most buyers transfer equity from their old home to their new home, but can’t do so if they don’t sell in time. Your £450,000 equity could be used as leverage for a bridging loan – a short-term way of borrowing money that you pay off when you sell your old home.

Daniel Yeo says it may be possible to get a bridge loan for the total value of your new home from an SF broker, but you’ll actually pay more in interest on the loan. Most bridging loans require a minimum deposit of 25%, so you’ll need to raise at least £162,500.

Chris Sykes, from mortgage broker Private Financial, warned that bridging finance was risky as lenders generally had to make a profit in less than a year. This means that the costs are much higher than regular loans. If it takes a long time to sell your old home, you may end up with a very large bill.

If you opt for a bridge loan, Sykes says it might be a good idea to put your home on the market for a discount to sell it quickly rather than incurring the huge costs associated with a bridge.

By far the cheapest option is to find a seller who is willing to help you sell your home, which will reduce the need for a mortgage. Even if you do, there’s still a £200,000 difference expected to be made.

You may consider taking money out of some of your ISA investments, but the money is tax-free forever, so you may want to let it top up your retirement income. We offer the benefits of stocks and shares ISAs.

Another option is to take a late life loan such as an equity release. These types of loans are designed for people aged 55 or over and include annuity interest-only loans, where you don’t pay off the loan yourself until the house is sold when you die or go into care.

However, there are hereditary implications, so anyone who has children should keep this in mind. We present some downsides of equity issuance.

Anthony Barratt, head of mortgages at the Age Partnership, said: “In theory it would be possible to take out a pension-only loan to buy a second home. However, the biggest sticking point will be equity because the lender doesn’t take into account the equity in the current home.

This means you need to use your other funds to make sure you can make the interest payments.

You’ve taken my advice and said you’re interested in a mortgage later – you just need your ideal home to come on the market now.

Here are the best equity release providers. We have also outlined some options for releasing equity.

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