To ask what you’d do? Property related.

[Merryoldgoat]

My DH and I moved away from an area we loved 5 years ago because we wanted to buy a house and couldn’t afford one there.

We bought a large 3 bed house and have a fair bit of equity. House supposedly now worth £550k ish.

We live in a not very fashionable London suburb in SW London. It’s ‘fine’. I’ve made some friends, kids are settled and life works fine. DH and I have reasonably secure jobs, haven’t been affected too much by Covid-19 and earn good money.

Youngest DS will be able to access 30 hours funding from next year which will free up around £600 per month.

So. These are our options.

1. Plough more money into the mortgage, pay off house much sooner and be mortgage free in 10 ish years.

1. Move back to a nicer area. We’d not really be able to get a better house but it would be in a much nicer area. We’d be looking at having to spend £800k ish for a house that would be suitable in this area.

1. Stay as we are and buy an investment property to rent out.

1. Extend our house into the loft - we have massive loft space and could add 2 double beds plus bathroom up there. Our house would then be 5 double bedrooms and 2.5 bathrooms. Prob worth something like £750k after that - it would cost £60k ish which wouldn’t really affect our mortgage massively.

I appreciate these are nice problems to have. But life isn’t all roses - both sons have SEN, I have some chronic health issues.

Where we are has great school provision for SEN but schools are generally better in the nicer area.

So what do you reckon?

I think I’m tempted by 4 but could be persuaded any way. DH thinks 3 or 4.

I’d do 4.

Your children are settled, they have good SEN provision, and (depending on the SEN involved) they may struggle to relocate/make new friends.

So better to enhance the house you have rather than uproot them.

And 3 is a bad idea these days, but to let is much less profitable than it was.

4 for the reasons given above.
Moving is hell.

I must admit I’m least keen on the BTL option.

I think I might get a builder to come and give me a quote.

I confess I detest moving.

I would rule out 3) straightaway considering current uncertainty. I also don’t think I would want 2) as if I am going to pay an extra £250k I would want a better house as well as a better area.

1. is a good option, it is nice to be mortgage free. If you need or really the extra space 4) sounds good too, although if you are planning on staying there the increased value is not going to matter for a long time.

1. But remember, building work is noisy and dirty - would the boys be ok with the disruption?

I'd do 3.

Then consider selling and moving to preferred area

@pussycatinboots

4. But remember, building work is noisy and dirty - would the boys be ok with the disruption?

Probably, the older would find it exciting. The younger would be at the CM in the day.

We could possibly stay with family for the messiest works.

Definitely something to consider.

Sorry. I mean I'd do 4!

@CareBear50

I'd do 3.

Then consider selling and moving to preferred area

This is definitely a thought - I think the loft would cost £60k ish and add £200k ish judging by the local prices.

£140k profit would certainly make a move a distinct possibility.

@CareBear50

Sorry. I mean I'd do 4!

I understood!

Four for me. Keep house and mortgage reasonable.

Definitely 4 to increase value and therefore choices, then reconsider once it's done.

Where we are has great school provision for SEN but schools are generally better in the nicer area. ‘better’ schools are not always good with regards to their SEN provision. I know of outstanding schools that discourage parents to send their SEN children there. If your local schools are known to have good SEN provision then I would stay.

1. Mortgage free, no question.

I'd only move if the current area wasn't meeting your needs, and I'd only extend if you needed the extra space.

Nothing would induce me to buy an investment property at the moment.

Definitely 1. Pay off mortgage and then enjoy life knowing that you have a secure home and £££ to spend or save or invest every month.

Is your downstairs suitable for a 5 bedroom house? I think most people buying one are expecting a very large kitchen etc.

4 but leave options open x

I’d do 1 especially if you have health issues.

2 I’d consider if your friends/family were there. Schools- need to check SEN provision, better schools aren’t always better in every way.

3 I wouldn’t consider unless you have researched this and believe you could make a profit. And you’d need to keep a good fund of money for when you don’t have tenants and for fixing stuff up. Also that you have time to manage the property, unless you definitely want zero profit by getting someone else to manage it. My stb ex DH has made a loss on BTLs and they are in decent areas for finding tenants.

4 good idea if you need the space and it will definitely add value.

I’d still do number 1 though. You sound like everything’s going well and you’re not desperate to move or to have a bigger house.

@IlanaWexler

Is your downstairs suitable for a 5 bedroom house? I think most people buying one are expecting a very large kitchen etc.

Yes - it’s an unusual house. Kitchen is large with a table and the living room is extremely large.

4 ... but 1 is also very appealing! I think it would depend how old I was.

@altiara

I’d do 1 especially if you have health issues.

2 I’d consider if your friends/family were there. Schools- need to check SEN provision, better schools aren’t always better in every way.

3 I wouldn’t consider unless you have researched this and believe you could make a profit. And you’d need to keep a good fund of money for when you don’t have tenants and for fixing stuff up. Also that you have time to manage the property, unless you definitely want zero profit by getting someone else to manage it. My stb ex DH has made a loss on BTLs and they are in decent areas for finding tenants.

4 good idea if you need the space and it will definitely add value.

I’d still do number 1 though. You sound like everything’s going well and you’re not desperate to move or to have a bigger house.

Thank you - this was very helpful to read.

We don’t need to move or need the additional space exactly, but Lockdown has emphasised how much we need an office as we both work from home on occasion and it’s been really shit trying to manage that without dedicated space.

A spare room for guests and an office would be really lovely.

I suppose a garden room would be a possibility for office space.

@Suzi888

I’m 42 and DH is 39.

Having said all of the above my children are driving me fucking mad today so maybe we should sell up and I’ll fuck off on my own 😖

Another vote for 4, I think it’s a no brainer for you seeing as you’ve said you hate moving. It doesn’t sound your children would cope well with a move either

I would be very concerned about starting big projects now: likely to suffer long delays due to Covid issues.

Personally I’d worry about about tying all my money up in property just now. We’re in recession, the market now is buoyant due to pent-up demand.... but once the frenetic activity stops prices may well not keep rising. The 2008 crash didn’t impact SE/London so much, but I think this recession will.

So, short term I’d do (1), and wait to see how things go in the coming year or so.

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