What would you do re property/savings at this stage?

[BarrenFieldofFucks]

We are in the position of having a chunk of money in the bank. Not enough to pay off the mortgage but enough to reuse it to about £20k. It is also nearly enough to do the much needed extension to get us an extra bedroom and bigger kitchen.

We are really torn. We do need more space in the medium term, but there's a little niggle as to what might happen in the next 6 months to a year.

What would you do?

Obviously it's entirely your call. My experience of a collapsed economy- which is obviously a worst case scenario and not what I am predicting with Brexit (before anyone starts yelling) is that people spent their money on "things" rather than trust it to sit in the bank where it might be devalued.
In response to your specific question, I would probably go ahead and try and tie a contractor to a quote now but also think about how disruptive it would be to your home. That's sort of a general thing really.
I inherited a smaller amount after my mum died and I used it to pay down the mortgage and to add a "buffer " (me and bufffers ) to my bank balance.

I'd save it, it has just been announced that my workplace is closing down and we've all been made redundant, you never know what's coming

I'm so sorry to hear that @Jayaywjumpt.

OP: This is a really hard one. One thing that you seriously need to think about is delays with materials. Supply chains for things like Kingspan are global nowadays, and if there is disruption at ports, you may struggle to get basic materials that you need in. This will delay you. If you have whacking great holes in the side of your house while that delay happens, it will be very, very miserable in winter.

Save it, but not all in one bank account. Spread it around. Have some in different currencies or gold, if possible.

Pay down your mortgage - that way you are in a position to take a break from mortgage payments if the economy is badly hit by Brexit in the next few months/ year and one or both of you lose your job. But check the terms of your mortgage first to make sure there is no penalty for making payments ahead of schedule.

In the meantime you can save for the house extensions - and even extend the mortgage in the future once things have settled down.

I would pay down the mortgage because if one or both of you lost your job in a global recession etc then you would be better placed to weather the storm.

Are your both jobs absolutely fire proof.
Frankly for the time being I would stay liquid.
Everyday people are finding that their job is not quite as secure as they thought.
How many Thomas Cook employees were expecting to lose their job last month. Even in a precarious sector such as travel or retail how many workers had saved up a 6/12 month buffer just in case?

Quite a few Thomas Cook employees should have known the company was in trouble. Had been for years.

I would make sure you know your company accounts or any plans for reorganisation.

Do you need the space? Badly? If you do, I would extend. Only if you are definitely going to be financially stable. You won’t get much from investing unless you go with a proper investment portfolio (you probably need £150,000 to be considered or even more) but you could pay off your mortgage. If really depends if you need the space and whether you think prices will go up if you delay - they will!