Buyer Cashes In Pension Early To Buy In Wokingham
Andy Davis was looking to avoid high mortgage rates as he got back onto the property ladder following a three-year period renting in Woking.
Andy opted to cash in 25% of his pension worth £268,000, and used this alongside £130,000 he had saved in ISAs – both of which were tax free. He then sold £225,000 worth of shares and made the rest of the purchase price up in unit trusts, buying a four-bedroom detached home at WhatHouse? Award-winning developer David Wilson Homes’ Ashridge Grange development in Wokingham in Berkshire outright last year. Thanks to being a cash buyer and purchasing a home that was ready to move into, Andy exchanged in mid-December 2022 and completed at the end of January 2023.
Andy, a global retail alliance manager, comments: “I had a lump sum in savings thanks to a house sale several years ago, which I invested in unit trusts and shares. I was also in a position to be able to cash in part of my pension early tax-efficiently. I have various investments and was carefully trying to optimise the best time to sell these to fund my house purchase outright, which was a stressful balancing act, particularly given how the market has fluctuated in recent months. The timing worked out well for me to buy a home, as my landlord was selling the property which would mean that I would have to find another rental elsewhere. Given how prices have jumped in the past few years, I would have had to pay an additional £300-£400 a month to rent somewhere of equal value, which just didn’t seem worth it and was the stimulus to seek to buy. Instead, I’m now totally mortgage free and saving the £2,000 I was spending on rent before in fixed rate bonds and getting a decent return. I’m confident I have made a financially savvy decision, and ultimately it’s a win-win as I have my own home again and can continue to build up my investment portfolio.”
Kimberley Benson, sales and marketing director at David Wilson Southern Counties, comments: “Cash is king in the current market, and we are seeing increasing numbers of Gen-Xers opting to use existing assets such as shares to purchase a home, which will in turn be a long-term investment for the future. Becoming mortgage free is a big priority for buyers in their 50s, so many are choosing to get smart with their property purchase and find a way to facilitate this – and thanks to the Chancellor’s scrapping of the pensions Lifetime Allowance, this will likely spur many more on to buy in a similar way to Andy.”
Andy decided to narrow his property search down to anywhere within a seven to eight mile radius of Wokingham, but eventually settled on Wokingham itself thanks to its proximity to both London and the M4. Andy adds: “I work in London once a week, but also travel internationally for work quite regularly, so it’s handy to be close to Heathrow via the M4. Wokingham is a lovely market town, and is a really well connected hub. Ashridge Grange is on the edge of the town and has a relaxing feel away from the hustle and bustle whilst remaining within walking distance to everything. I’m about a mile from the train station, and there are so many amenities – from tennis courts, a gym, and lots of independent coffee shops and restaurants. Ashridge Grange itself has a park and there is a lot of effort being made to create new green spaces and walking routes.”
Andy purchased a Hurst house type, a spacious detached home with an open-plan kitchen and dining area and separate lounge downstairs, and four double bedrooms upstairs. He continues: “I wanted a spacious home, as my partner Clare spends a lot of time here and will eventually move in. My children are also fairly regular visitors, so I wanted to have space for them as well as their partners to visit, and to be able to host friends socially too. I’ve bought this house with a future in mind.”
Andy adds: “I love how much space there is throughout the home – the kitchen is the perfect social hub and back out onto the garden, which will be ideal in the summer. There is also a car port which is a useful addition, and all bedrooms are big enough to fit a double bed in, which is exactly what I wanted.”
Wokingham offers families, investors and first-time buyers alike an ideal place to put down roots. Ashridge Grange itself is centrally located in the town, with quick and easy access to a vast array of excellent schools, cafés, shops, leisure and arts facilities.
Residents will be able to take advantage of being under an hour from London Paddington by train, supporting the flexible return to office working. Likewise, the A329 is only a few minutes away and links to the M4, providing access to Heathrow Airport. The area also supports reliable public bus routes, and a number of urban hubs such as Reading and Bracknell within easy reach.
There are plenty of family-friendly attractions in Wokingham, with Ashridge Grange also ideally situated only a ten-minute walk from Kentwood Meadows and within a short drive to Keephatch Park Nature Reserve, a nine-hectare local conservation area in Wokingham. A new culture and leisure complex ‘The Carnival Hub’ has also been launched to encourage arts in Wokingham of all ages.
Currently available at Ashridge Grange is a selection of one-, two-, three- and four-bedroom homes, with prices starting from £273,995 for a one-bedroom apartment with a balcony.
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