At 76, retirement plans hinge on a housing choice: buy a £1.3m doer-upper or rent while deciding what comes next

A 76-year-old London tax partner is weighing whether to buy a ground-floor flat that would require a substantial refurbishment for about £1.068 million, or to rent at roughly £5,000 to £6,000 a month while he decides how to frame his retirement and living arrangements. The decision comes as he faces a tight budget for a new home and uncertainty over potential changes to stamp duty that could affect the cost of such a move.

The reader’s current home is a first-floor flat in a sought-after London conversion that is under offer for about £805,000. He has savings of just over £700,000, of which roughly £500,000 would be needed to purchase the ground-floor flat and fund the refurbishment, with stamp duty estimated at around £50,000. Those figures suggest that purchasing the doer-upper would consume a large portion of his cash reserves and would also lock him into a long-term commitment at an age when he expects to retire partly or fully in the next two years. If he sells his current property but does not buy the new one, he would hold more liquidity to invest and could test a later relocation plan while maintaining flexibility on housing costs.

If he chooses to rent instead, the monthly outlay would be around £5,000 to £6,000, a level that would still be a meaningful slice of income in retirement but could be more palatable given the uncertain timing of retirement and travel plans to spend months outside the UK with family. The possibility of moving abroad permanently in the future weighs toward renting as a temporary solution that preserves capital and reduces upfront risk while he sorts out his living arrangements and retirement timeline.

The question, said Ed Magnus, editor at This Is Money, is whether a new purchase would truly serve as a forever home. He argues that tying up large sums in a high‑cost renovation project while maintaining full-time work, travel plans, and uncertain retirement timing could become a burden, especially if the buyer encounters delays or scope creep with the renovation. He notes that securing a short-term rental during a refurbishment is common but that such leases can be expensive and may not provide the desired stability for someone who expects travel and a shifting routine.

A broader market context frames the dilemma. The property market has shown volatility, with analysts noting that speculation around new property taxes has cooled demand in some segments. In London, market observers have pointed to potential policy shifts that could affect the cost of ownership, including talk of replacing stamp duty with an annual levy for higher-value homes. While no policy changes have been enacted, investors and buyers are monitoring the chatter closely, as it can influence pricing and demand in Prime Central London markets. Knight Frank has forecast that Prime Central London prices may finish the year lower than they began 2025, underscoring the importance of liquidity and risk tolerance for someone evaluating a large, illiquid asset in retirement planning.

Experts weigh in on how the reader might proceed. Jo Eccles, founder and managing director of the London buying agency Eccord, cautions that the decision should hinge on whether the new flat is truly intended as a long-term home. The lack of stairs and the outdoor space on the ground-floor unit align with common criteria for later-life living, but Eccles notes that a major renovation can be disorienting and time-consuming for someone still working full-time. She suggests that if the reader sells now, renting could provide breathing room to test a lifestyle with fewer financial commitments and then decide whether to buy again with more clarity and cash on hand.

Jason Hollands, managing director at Evelyn Partners, points out that the proposed plan is unusual for someone at this life stage: upsizing to a more expensive property at a time when retirement may be imminent. If he proceeds, he would likely reduce his cash reserves sharply, potentially leaving less than £200,000 after accounting for the property price differential, refurb costs, and stamp duty. Hollands emphasizes the value of understanding the reader’s pension arrangements and potential inheritance tax planning, given a likely sizeable estate. For those who decide to rent, Hollands notes the option to preserve wealth for gifts or investments and to reduce exposure to debt or large capital commitments.

Olly Cheng, financial planning lead at Rathbones, adds that if there is a prospect of permanent relocation abroad to be closer to family, renting can be a prudent interim choice given the capital that would otherwise be tied up in a high-value purchase. He argues that the appetite for a large renovation could decline with age, strengthening the case for purchasing a more modest, easily maintainable home now if staying in the UK is likely to remain part of the plan.

Across the experts’ viewpoints, there is a common emphasis on liquidity and risk, especially given the reader’s willingness to retire gradually and spend extended periods abroad. For those with substantial cash earmarked for a home purchase, several advisers recommend preserving a cash war chest and avoiding aggressive investment exposure that could be volatile in the near term. In this context, low-risk options such as short-dated gilts or high-quality, high-yielding investment trusts offered through trusted managers can provide a tax-efficient balance of income and capital preservation. For higher-rate taxpayers, some advisers highlight the advantage of gilt-linked strategies, where gains may be tax-free and income is relatively predictable compared with stock-market investments.

The mortgage environment also factors into the calculus. This Is Money’s guidance on remortgaging and new mortgages urges buyers and existing borrowers to explore options early, lock in terms six to nine months ahead where possible, and avoid overstretching when interest rates are high. For those contemplating a sale and purchase, obtaining a clear sense of monthly payments under a new loan can prevent surprises if rates rise or if affordability tightens during the execution of a refurbishment project.

Ultimately, the decision rests on whether the ground-floor flat represents a stable, long-term home that aligns with retirement plans, travel, and the possibility of spending time abroad. If the reader opts to rent, he could retain flexibility to adjust plans as retirement timing becomes clearer and to preserve liquidity for potential gifts or investments. If he chooses to buy, he should prepare for a sizeable capital outlay, a lengthy renovation process, and a decision to commit to a new home in a period of potential tax uncertainty and shifting market conditions.

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As the options unfold, advisers advise a careful balancing of practical needs, retirement timing, and financial resilience. The reader is at a crossroads common to many high-net-worth homeowners in major cities: to anchor life changes in a new home that suits aging in place, or to preserve capital and maintain flexibility while navigating a market that remains uncertain on policy and pricing.