If I want 3 kids, we need to extend the loft, how best to finance?

[llamallama]

Currently pregnant with DC2 but thinking ahead, ideally I would like 3, but realistically know this means extending the house.

We currently live in a large 3 bed. I say large, well the downstairs living space is large as the house has been extended to the back and we have 2 good sized bedrooms but bedroom 3 is literally a box. It's perfect for a study/dumping ground but impossible for a bedroom.

The two DCs can share one room, but not three.

We could go into the loft and I think we could get 2 bedrooms up there, meaning kids can have own rooms and we get to keep the box room.

Problem is that we don't have the 30k in the bank to fund it! But I also don't want to limit my family as I think the finances could be worked around. Would it be best to get a loan perhaps to cover the cost of the work? We have a good credit rating. Could add to mortgage but we have only recently signed up for a fixed rate mortgage so not sure if we could or not?

Is it worth getting into debt for this? We have good equity on the house and affordable mortgage repayments.

Anyone else been in similar circumstances? My head is saying stop at 2 kids but my heart wants 3 and longer te the loft work will benefit all the kids!

How does your dp / dh feel about this plan?

If you're just now pregnant with dc2, would it be safe to say you are 3 years away from actually doing the work? If not, when would you estimate it would 'need' to be done?

Who works in your household?

What pay rises / bonuses / commission etc could be expected?

Any chance of extra hours /pay?

Night time job?

Working from home?

How else could you get your income up?

Do you have savings?

How much could be put toward the work?

How much extra money do you think you could scrape together in the next few years (economizing, ebay, car boot sales, etc) if you live frugally?

Do you think you would you qualify for a loan?
How 'stretched' are you by your current mortgage?

Lots of questions, I know, but this is a big decision and commitment.

2 of our girls shared the largest bedroom for quite a few years... that does buy you some more time!

That should be 3 of our 4 girls

Thanks!

We both work but I'm hoping to go back part time after mat leave. Our monthly repayments are good, we can save at least £500 a month (sometimes as much as twice that) (currently doing this to fund maternity leave) but I'm not sure how sustainable this will be once I'm part time. Work would be a couple of years away, so we have time to save and think it a through.

Perhaps a plan would be to try and save half the money perhaps? And then borrow the other half?

I don't think we will have any problem getting a loan, we both have good credit rating and my bank try to get me to take out a loan practically every time I go in there and use the counter service!!

I would probably try and overpay the mortgage as much as possible, until you are ready to the loft, and then increase the mortgage as needed.

Could you use the small room as a bedroom with clever furniture - eg:
2ft 6" wide bed x 5ft 3" long. Could suit one of your children.

From experience I would advice do not build one of those high loft style beds in tiny bedroom, even though you can fit a wardrobe underneath.

We extended our mortgage to fund half of the cost of our loft conversion and used savings for the other half. We have never regretted it. It has meant that we will not have to move and the children having their own rooms is a big bonus. We have had to cut back on other spending though but feel it is worth it and it has added value to our house.

Same as Phoebe74

I personally wouldnt worry about it too much for now - we have 3 kids in a 3 bed house and currently the eldest 2 (6yrs & 4yrs) share a room, with our 18mo in her own room.

Can your box room not be used as a nursery room for a 3rd baby for at least 2yrs whilst baby is still in a cot? If so, then you are potentially 5 or so years away from needing more bedrooms than you currently have.

We are toying with the idea of converting our loft, but we also have the added bonus of a large, downstairs playroom with downstairs shower room next to it that we could use as the 4th bedroom when the kids get fed up of sharing. Does your downstairs have any scope for that kind of thing?

If you really want 3 babies, then dont let bedroom space stop you - I posted a thread a while ago (cant remember on which forum) about potentially wanting a 4th but we definetly dont have enough bedrooms for that at the moment, and most replies were that I should never let bedroom arrangements cloud my decision on wanting a 4th!