my husband currently says I can have 100% the equity as he feels guilty

get to a solicitor as fast as possible and get this settlement agreed. In a years time he will have stopped feeling so guilty...

and put the equity (around £300 - £350K max) away as savings in some form or another to accumulate over the next 10 years as retirement funds?

you need somewhere to live when you are retired (unless this is with your sister?). It makes little sense to keep a house which is much bigger than you need, but one sensible option would be to buy a house which will be a sensible size for you long term and invest the rest of the money.

I could probably go and live with my sister.

But would you LIKE to live with your sister? Would she like to live with you? If she is married, what would her other half say?

I'm not against this idea. As kids, my sister and I used to fight like cats and dogs, now I suspect we could happily share a house, even though we have different interests. But you shouldnt just live with her to save money!

I think, for my own state of mind, I just need to feel I have something worthwhile put away for the future.

I think focussing on your retirement is a good idea. You have ignored it for too long. But that doesn't mean there is any need to panic. Also you probably need to be thinking of it being 15 years until you retire, not 10.

Would it be sensible for me to sell our house

Yes I think so, probably. But before deciding what to do then, find out the facts. What would a smaller place cost you to buy? Have a chat with your sister and see if living together is a sensible option. Find out what you could rent out the smaller house for - this would mean you kept your foot on the property ladder, but still got an income, giving you a fall back if you and your sister decide living together no longer suits.

manzanilla